A Complete Guide to Corporate Tax in the UAE 2025
What is Corporate Tax in the UAE?
Corporate Tax is a direct tax imposed on the net income (profits) earned by companies operating within the UAE.
It was implemented on June 1, 2023, under Federal Decree-Law No. (47) of 2022.
The Federal Tax Authority (FTA) oversees its administration, aligning the UAE’s system with global tax standards and promoting financial transparency.
What is the Corporate Tax Rate?
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9% on taxable profits exceeding AED 375,000
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0% on profits up to AED 375,000, supporting SMEs
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Natural resource companies are subject to Emirate-level taxation
Who Must Register for Corporate Tax?
All legal entities conducting business in the UAE must register with the Federal Tax Authority (FTA).
This includes:
Local companies
Branches
Foreign entities operating within the UAE
Exempt Entities:
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Government entities
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Qualified investment funds
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Approved charitable organizations
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Free Zone companies that meet qualifying conditions
Post-Registration Responsibilities:
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Prepare audited financial statements annually
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Submit the Corporate Tax Return within 9 months of the financial year-end
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Maintain records and supporting documents for at least 7 years
How is Taxable Income Calculated?
Taxable income is determined based on adjusted accounting profits following IFRS standards,
after deducting allowable expenses and adding back non-deductible items.
How YAS ACCOUNT Helps:
Auto-prepared corporate tax reports
FTA-compliant XML return generation
Smart analysis of taxable profits
Automatic reminders before submission deadlines
With YAS ACCOUNT, tax compliance becomes simple, accurate, and fully automated.
