- Corporate Tax
What is Corporate Tax in UAE?
Corporate tax is a federal tax on the profits earned by companies in the UAE. It was introduced to match global tax standards. With this taxation practice, the aim is to strengthen the UAE’s financial system.
The law came into effect on 1 June 2023, and is rigorously being practiced. It applies to businesses whose financial year starts on or after this date. If your company earns more than AED 375,000 in taxable income each year, you will have to pay the 9% corporate tax.
This applies to mainland companies and certain free zone companies. It is also applicable in RAKEZ, subject to whether the company meets qualifying criteria.
UAE tax registration is not optional. It is a legal requirement after your company setup in UAE. If you do not register or file a return, you will face heavy penalties. Aurum’s experienced tax advisors help you with corporate tax registration UAE, file correctly, and stay compliant year after year.
- Why Corporate Tax
Why You Need Corporate Tax Services in UAE
Corporate tax is new to the UAE. Most companies are still getting used to the regulations. Without expertise, chances are that you will make errors, overlook deadlines, or report incorrect figures.
Through Aurum’s corporate tax service, you will:
- Meet legal tax obligations.
- Avoid late or incorrect filing penalties.
- Save time by allowing experts to handle the process.
- Get advice as per your industry and business size.
- Keep records ready for any government audit.
For businesses in RAKEZ free zone, working with a corporate tax consultant also means you can confirm if you qualify for free zone tax benefits and how to maintain them.
As a trusted corporate tax advisory, Aurum offers complete corporate tax support. You can choose individual services or discounted bundles:
Corporate Tax Services – Individual Rates
| Service | Description | Prices |
|---|---|---|
| Corporate Tax Readiness Consultation | Checking your finances and operations to confirm compliance before filing. | AED 1,499 |
| Corporate Tax Registration | Registering with the Ministry of Finance to obtain your TRN. | AED 1,249 |
| Corporate Tax Filing – Companies with Turnover | Submitting tax returns accurately and on time for businesses with annual revenue. | AED 3,749 |
| Corporate Tax Filing – Zero Turnover | Filing support for companies without income in the tax period. | AED 1,800 |
| Accounting & Bookkeeping | Maintaining organized, audit-ready records with expert accounting services. | Starting from AED 5,250 |
Corporate Tax Service Bundles – Best Value
| Bundle | What’s Included | Price |
|---|---|---|
| Consultation + Registration + Filing – Companies with Turnover | All essential tax compliance services: readiness review, MoF registration, and tax filing. | AED 4,449 |
| Consultation + Registration + Filing – Zero Turnover | Full compliance package for non-operational businesses. | AED 2,750 |
| Consultation + Registration + Filing + Bookkeeping | A complete compliance and financial management solution for the year. | AED 9,949 |
- Our Process
Corporate Tax Registration Process in UAE
UAE tax registration is a process that is comprised of several steps:
Registration is mandatory if your taxable income is more than AED 375,000 annually. Even if you are likely to be under the limit, check your status with a consultant because certain business activities may still require registration.
You will need:
- Trade license
- Emirates ID of the owner or partners
- Passport copies of shareholders or authorized signatories
- Financial statements and any other relevant records
Aurum will assist you in opening an account, filling out the registration form, and submitting your documents. Precision is important, errors can cause delay.
After approval, you will receive your TRN. This is used for all company tax purposes, including filing and official correspondence.
Maintain proper financial records during the course of the year. These include receipts, invoices, payroll details, and bank statements.
Make your return annually, in accordance with your financial year-end. Your return may be filed late or incorrectly, and this will incur penalties.
- Frequently Asked Questions
Your Common Questions Answered
Who needs to pay corporate tax in the UAE?
Those businesses are liable for tax whose income exceeds AED 375,000 annually. Most companies in the mainland and some free zone companies, such as those in RAKEZ, are among them. Even if your business is conducted in a free zone, you might still need to pay tax unless you are eligible for certain exemptions. The taxable businesses which belong to foreign investors in the UAE have to follow corporate tax law.
How do I register for corporate tax?
You will need to register on the official Ministry of Finance (MoF) portal. The process is to create an account, complete the online application form, and upload supporting documents, including your trade license, Emirates ID, copies of your passport, and financial statements. Aurum’s consultant can assist with ensuring your application is correct and submitted in time.
What’s the corporate tax rate in the UAE?
When the taxable income is more than AED 375,000, the corporate tax rate of 9% is charged for the business. The initial AED 375,000 is exempt from taxes. This framework benefits small businesses by providing relief during the initial growth phase while making the big businesses pay based on their earnings.
Are there any exemptions from corporate tax?
Some free zone companies will be eligible for a 0% tax rate which are earning certain types of income. They must also satisfy the qualifying conditions. Other exemptions are government institutions, public benefit entities, and small businesses with AED 375,000 and below. Nevertheless, even if exempted, you might still be required to register.
What is the consequence if I miss the filing deadline?
If you do not file your company’s tax return on time, you could be saddled with fixed penalties or even daily penalties for future delays. Late filing will also raise problems with renewing your business license and damage your business reputation. Using a tax advisor protects you from missing all deadlines.
Do startups have to be registered for corporate tax?
Even if your taxable income is less than AED 375,000, it is advisable to register to ensure your tax status with the Ministry of Finance. It also gets you prepared to file as soon as your income reaches the threshold.
Is corporate tax exempt for free zone companies?
Certain free zone businesses, such as those located in RAKEZ, can be entitled to a 0% tax status if they are eligible under all the requirements for qualifying income. This is subject to the nature of activities performed and substance rules compliance. Aurum’s tax advisor will assist you in your eligibility for exemption.
What do I need to register?
Commonly required documents include:
- A valid trade license
- Emirates ID of the owner or partners
- Passport copies of shareholders or authorized signatories
- Recent financial statements
More documents might be needed based on your business setup.
How frequently must I submit corporate tax returns?
You are required to submit your corporate tax return yearly. It will be calculated according to your business’s financial year-end. The return must include all taxable income, deductions, and available exemptions for the period. Timely and accurate submission is essential to prevent penalties.
How can Aurum help me with corporate tax compliance?
Aurum provides a complete suite of services, from readiness consultation and registration to filing and bookkeeping. We have competitive individual rates and bundle packages, so you can select the level of assistance best for you. Our consultants will help maintain your compliance and save you time, as well as minimize the risk of penalties.