Corporate Tax Consultancy
Introduction to Corporate Tax in the UAE
The UAE introduced Federal Corporate Tax effective from June 1, 2023, marking a significant shift in the country’s taxation landscape. This move aligns with global tax standards while supporting the UAE’s commitment to economic diversification and transparency.
Corporate Tax applies to business profits and is governed by the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
At FSH Financial Consultants FZE, we provide end-to-end support for Corporate Tax, helping businesses stay compliant, efficient, and penalty-free. Whether you’re a startup, SME, or established entity, our personalized services ensure your tax obligations are handled with accuracy and care.
Who Is Subject to Corporate Tax?
Corporate Tax applies to:
UAE mainland companies
Free Zone entities (with exceptions and special rules)
Branches of foreign companies
Individuals conducting business activities under a commercial license
Partnerships, foundations, and other legal arrangements (based on structure)
Corporate Tax Rates
0% on taxable income up to AED 375,000
9% on taxable income exceeding AED 375,000
15% for certain large multinational groups subject to OECD’s Pillar Two (Global Minimum Tax)
What Is Taxable Income?
Taxable income is calculated as accounting profit, adjusted for specific exemptions and disallowances under the tax law. Businesses must prepare audited financial statements in accordance with accepted accounting standards to support their tax filings.
Key Concepts & Provisions
Free Zones: Qualifying Free Zone entities may enjoy a 0% Corporate Tax rate on qualifying income if they meet specific substance and reporting requirements.
Small Business Relief: Available to businesses with revenue under AED 3 million (available until 2026).
Transfer Pricing: Businesses engaged in related party transactions must comply with arm’s length principles and maintain proper Transfer Pricing documentation.
Exemptions: Certain entities are exempt, such as government bodies, public benefit entities, pension funds, and investment funds (subject to conditions).
Corporate Tax Compliance Requirements
Businesses subject to Corporate Tax must:
Register with the Federal Tax Authority (FTA)
Obtain a Tax Registration Number (TRN)
Maintain proper books of accounts
File annual Corporate Tax returns
Pay tax liabilities within 9 months from the end of the relevant financial year
Comply with Transfer Pricing rules (if applicable)
Ensure substance and eligibility criteria (for Free Zone benefits)
Penalties for Non-Compliance
Non-compliance can result in financial penalties, loss of Free Zone tax benefits, or audits by the FTA. Timely registration and accurate filing are crucial to avoid issues.
How FSH Financial Consultants Can Help
At FSH Financial Consultants FZE, we provide comprehensive Corporate Tax support tailored to your business size and structure. Whether you’re on the mainland or in a Free Zone, we help you understand your obligations and stay fully compliant.
Our Corporate Tax services include:
Corporate Tax Registration with FTA
Assessment of tax applicability and exemptions
Tax planning & structuring
Preparation and filing of Corporate Tax returns
Transfer Pricing documentation and compliance
Free Zone eligibility and advisory
Ongoing compliance monitoring and support