FAQ corporate tax

A FAQ about the most common questions to answer on the field about TAX-related issues & corporate tax Issues

in this article, we will be answering all common questions that are related to corporate tax in the United Arab Emirates

Corporate Tax is a form of direct Tax levied on the net income or profit of corporations and other businesses.

What is Corporate Tax in UAE ?

Companies can register for Corporate Tax through Emarat Tax Portal by registering with your email ID and Phone number.

How to register in Corporate tax ?

Corporate tax is calculate on taxable income.
Corporate tax = Taxable income * Tax Rate applicable.

How to calculate corporate in UAE ?

Every Taxable person, including those under the Free Zone Persons category, needs to register for Corporate Tax. The FTA may also ask exempted people to register for Corporate Tax.

Who has to register for Corporate Tax ?

Table income not exceeding AED 375,000 0 %
Taxable income exceeding AED 375,000 9 %
Qualifying income FreeZone 0 %
Taxable income that does not meet the qualifying income definition 9 %

What are the rate for Corporate Tax ?

Government entity and entity wholly owned and controlled by Government, Businesses engaged in the extraction, Qualifying Public Benefit Entities, Qualifying Investment Funds, public or private pension or social security funds, Entity wholly-owned and controlled by exempt entity.

Who are exempt from Corporate Tax ?

Corporate Tax is applicable on Free Zone companies as well. However, there is relaxation given to Free-Zone companies to enjoy 0% Tax on qualifying income.

Do free-zone company need to pay tax ?

Qualifying income includes income from the transaction with other Free Zone person as well as domestic and foreign sourced income from any of the ‘Qualifying Activities’.

What is qualifying income ?

Yes. All Free Zone Persons will be required to register, obtain a Tax Registration Number, and file a Corporate Tax return, irrespective of whether they are a Qualifying Free Zone Person or not.

Will free zone person need to register for Corporate Tax?

All the Taxable person needs to register for corporate Tax before they file their first Tax return.
Tax return shall be filed within 9 months from the end of their financial year.

What is the dead line for Corporate Tax registration ?

No. There is no registration threshold for UAE Corporate Tax.

Is there any threshold limit for Corporate Tax registration ?

DANIX Consultancy will help you in determining whether VAT registration is applicable to your business, register your company and obtain the VAT certificate. We shall evaluate each transaction and calculate the correct VAT amount payable and eligible VAT credit to avoid fines and penalties.

How can Danix Consultancy assist you in VAT registration and minimizing fines and penalties ?

We will support you with all the required document for the Corporate Tax, register your company, and assist you submit them with 100% compliance. We provide guidance on the Tax implications of different business activities, helps with the preparation and filing of Annual Tax returns.

How DANIX Consultancy can assist you in Corporate Tax registration and avoid fines and penalties?

Contact US