1. Who is subject to Corporate Tax?
All companies and legal entities incorporated in the UAE.
Foreign businesses with a permanent establishment in the UAE.
Freelancers and individuals earning business income over AED 1 million annually.
2. What is the Corporate Tax Rate?
0% on taxable profits up to AED 375,000.
9% on taxable profits above AED 375,000.
Certain large multinational companies may be subject to a different rate under OECD’s Pillar Two rules.
3. What income is exempt?
Salaries and personal employment income.
Dividends and capital gains from qualifying shareholdings.
Certain natural resource extraction businesses (still subject to Emirate-level taxation).
4. Key Compliance Requirements
Businesses must register for Corporate Tax with the FTA.
Maintain proper accounting records.
File a Corporate Tax Return annually within 9 months of the end of the financial year.
5. Why this matter for SMEs and freelancers
Corporate Tax may sound complicated, but with proper bookkeeping and planning, compliance can be simple. Freelancers earning more than AED 1 million should pay special attention to CT registration to avoid penalties.
6. How I can help
As a professional accountant with UAE experience, I help businesses and freelancers:
Assess their tax obligations.
Maintain compliant accounting records.
File Corporate Tax returns accurately and on time.
📌 Final note: Corporate Tax is a new system in the UAE, and the Federal Tax Authority (FTA) regularly updates its guidance. Always ensure your business is up to date.