UAE Corporate Tax: What Businesses Need to Know in 2024
Understanding the new corporate tax regime in the UAE and how it affects your business operations, compliance requirements, and financial planning.
The UAE introduced corporate tax for the first time in June 2023, marking a significant shift in the country's tax landscape. This comprehensive guide covers everything businesses need to know about the new corporate tax regime.
Overview of UAE Corporate Tax
The UAE Corporate Tax Law applies to financial years beginning on or after June 1, 2023, with the following key features:
- Tax Rate: 9% on taxable income exceeding AED 375,000
- Small Business Relief: 0% tax rate on taxable income up to AED 375,000
- Qualifying Free Zone Persons: 0% tax rate on qualifying income
Who is Subject to Corporate Tax?
Corporate tax applies to:
- UAE resident persons (companies and other entities)
- Non-resident persons with a permanent establishment in the UAE
- Non-resident persons earning UAE-sourced income
Key Compliance Requirements
Registration
Businesses must register for corporate tax with the Federal Tax Authority (FTA) if they meet certain criteria.
Record Keeping
Maintain proper accounting records and supporting documents for at least 5 years.
Tax Returns
File annual corporate tax returns within 9 months of the financial year-end.
For expert guidance on corporate tax compliance, contact Expandub's tax specialists.