0% applies to taxable income up to AED 375,000, and 9% applies above that threshold. A different rate applies to large multinationals under the OECD global minimum tax (Pillar Two) rules.

Government entities, government-controlled entities, extractive businesses, qualifying public benefit organisations, qualifying investment funds, and qualifying pension or social security funds are exempt, subject to meeting specific conditions.

All taxable persons conducting business in the UAE, including mainland companies, free zone companies, and certain individuals carrying out business activity, must register with the FTA even if they expect to pay 0% tax.

Registration is done online through the FTA's EmaraTax portal, with deadlines based on your licence issue date. IFC handles end-to-end CT Registration for clients to ensure deadlines are met.

Small Business Relief lets eligible businesses with revenue under AED 3 million be treated as having no taxable income for that period. It must be elected each tax period and is not automatic, and certain entities such as Qualifying Free Zone Persons and Tax Groups are excluded.

Qualifying Free Zone Persons can benefit from a 0% rate on qualifying income, provided they meet substance requirements and the regime is not applied automatically, eligibility must be assessed each tax period. Non-qualifying income is taxed at the standard 9% rate.

A juridical person incorporated in the UAE is automatically a tax resident. A foreign entity may also be considered resident if it is effectively managed and controlled in the UAE. Individuals are assessed separately based on their business activity.

Foreign companies with a Permanent Establishment, UAE-sourced income, or a taxable nexus in the UAE are subject to CT on that UAE-connected income. UAE branches of foreign or domestic businesses are not separate legal entities, but their UAE income is still taxable.

Individuals are only subject to CT if they conduct a business or business activity in the UAE generating revenue above AED 1 million, such as freelance or licensed business income. Employment income, personal investment returns, and personal real estate income are not subject to CT.

UAE companies meeting ownership and residency conditions can form a Tax Group and file a single consolidated CT Return. One parent entity is responsible for filing and payment, and 0% Free Zone benefits apply individually rather than at group level.

Yes. Qualifying Group relief and Business Restructuring relief allow tax-neutral transfers of assets, liabilities, and equity between group companies and during mergers or spin-offs, provided ownership and continuity conditions are met.

Most expenses incurred wholly for business purposes are deductible. Non-deductible items include fines, donations to non-qualifying entities, 50% of entertainment expenses, and dividends. Interest deductibility is also capped under the general interest deduction limitation rule.

Capital gains are generally taxable as part of business income, but the participation exemption can exempt gains and dividends from qualifying shareholdings of 5% or more held for at least 12 months. Dividends from other UAE entities are generally exempt to avoid double taxation.

Tax losses can generally be carried forward to offset up to 75% of taxable income in future periods, and transferred between group companies meeting ownership conditions. A change in ownership of more than 50% may restrict the ability to use prior losses.

Transactions between Related Parties and Connected Persons must be priced at arm's length, using OECD-recognised methodologies. Businesses above certain thresholds must maintain a master file and local file, and these rules apply to both domestic and cross-border transactions, including intra-group loans.

Taxable income starts from Accounting net profit, prepared under IFRS on an accruals basis, with specific adjustments for exempt income, non-deductible expenses, and unrealised gains or losses. Most businesses can elect the realisation basis for certain unrealised items.

Qualifying investment funds, Family Foundations, and Special Purpose Vehicles used by investment funds can be exempt from CT if specific regulatory and ownership conditions are met. A UAE-based fund manager acting independently does not normally create a taxable presence for the fund itself.

Unincorporated partnerships are generally treated as transparent, meaning each partner is taxed individually on their share of income, while incorporated partnerships may be taxed as a single juridical person. Sole proprietorships and civil companies are treated as the individual owner for CT purposes.

A juridical person is a legal entity such as a company that has its own separate legal identity, distinct from its owners. A "Business" or "Business Activity" refers to any activity conducted on an ongoing basis with the intent to generate income, regardless of profit motive.

Extractive and non-extractive natural resource businesses are generally outside the scope of federal CT as they remain subject to Emirate-level taxation. Banking, real estate, and asset management sectors are subject to standard UAE CT, while international airline and shipping income is typically governed by reciprocal exemption agreements.

A Foreign Tax Credit is available for foreign tax paid on income that is also subject to UAE CT, limited to the lower of the foreign tax paid or the UAE CT due on that income. This prevents the same income from being taxed twice.

The UAE CT regime currently applies a 0% withholding tax rate on specified categories of UAE-sourced income paid to non-residents, meaning no actual tax is withheld in practice.

CT Returns are filed annually, generally within 9 months of your financial year end, and the same deadline applies to payment. Filing must be done electronically through EmaraTax, and penalties apply for late registration, late filing, late payment, and inaccurate returns.

Yes. Even dormant companies or those with no taxable profit in a tax period must still file a CT Return with the FTA to remain compliant.

Businesses must retain financial statements, supporting documents, and accounting records for at least 7 years after the end of the relevant tax period, as evidence to support the figures reported in their CT return.

No. Corporate Tax is a separate tax on business profits and applies alongside VAT and Excise Tax, as well as Emirate-level taxes and government service fees. Businesses must continue meeting all applicable obligations.

Businesses that cease operations or no longer meet taxable person criteria must apply for CT deregistration within 3 months of cessation to avoid late deregistration penalties.

Preparation includes registering with the FTA, reviewing your corporate structure for Free Zone or Tax Group eligibility, setting up IFRS-compliant accounting records, and assessing transfer pricing exposure. IFC offers end-to-end CT Compliance support for UAE SMEs and groups.

Yes. UAE Corporate Tax applies regardless of the nationality of the owners. UAE and GCC-owned entities are subject to the same CT rules as any other UAE taxable person, unless a specific exemption applies.

Yes. IFC builds investor-ready Financial Forecasts and Pitch Deck support, helping UAE businesses present credible projections to banks, investors, and partners.