UAE Corporate Tax 2024: Everything Businesses Need to Know

What is UAE Corporate Tax?

The UAE Federal Decree-Law on Corporate Tax (CT) came into force on 1 June 2023 for financial years starting on or after that date. It applies a 9% rate on taxable income exceeding AED 375,000 annually.

Who is Subject to Corporate Tax?

UAE Corporate Tax applies to:
- UAE-incorporated businesses
- Foreign businesses with a permanent establishment in the UAE
- Businesses with UAE-sourced income

Who is Exempt?

Certain entities are exempt:
- Government entities
- Qualifying public benefit organizations
- Qualifying investment funds
- Qualifying free zone persons (see below)

Free Zone Businesses and Corporate Tax

Free zone companies can maintain a 0% CT rate if they qualify as a 'Qualifying Free Zone Person' (QFZP). This requires: maintaining adequate substance in the free zone, earning Qualifying Income, not having elected to be subject to standard CT, and complying with UAE CT Law requirements.

Registration Requirements

All UAE businesses must register for Corporate Tax through the EmaraTax portal, regardless of whether they are subject to the 9% rate or benefit from exemptions.