UAE Corporate Tax - Know what you need to do

The UAE introduced a new Corporate Tax regime that will be effective for the financial years commencing on or after June 1, 2023.

It forms part of the UAE’s commitment to meeting international best practices and ensures it maintains its status as a leading global hub for business and is aligned with international standards for tax transparency and preventing harmful tax practices.

Based on the new regulation – the Federal Decree-Law No. (47) of 2022 on the taxation on Corporations and Businesses – a Taxable Person with income exceeding AED 375,000 will be subject to a 9% Corporate Tax rate.

Some exemptions exist, so download our UAE Corporate Tax Factsheet here if you are unsure.

The UAE Corporate Tax regime applies across all Emirates. Taxable Persons cover an entity incorporated in the UAE (including Freezone and Offshore Companies) or managed and controlled from the UAE. Individuals who conduct a trade or business in the UAE and non-residents who have a permanent establishment or derive income from the UAE are also captured. Each Taxable Person must register with the FTA, regardless of if it has taxable income.

Once registered, you then need to submit your Corporate Tax return within nine months from the end of your first Financial Year End after June 1, 2023. So, if your entity has a financial year that runs from January 1, 2024, to December 31, 2024, your Corporate Tax registration and, therefore, your return would be due before September 30, 2025.

How can Amicorp help?

Our team can help and ensure you are fully compliant with the new regime, including:

• Corporate Tax Registration and Filing
• Accounting/Bookkeeping requirements
• VAT Registration and Filing
• Full Economic Substance Classification and Reporting

If you would like to learn more about how Amicorp can help ensure you are compliant with the Corporate Tax and any other UAE regulations, get in touch with the team here.