What is Corporate Tax in the UAE?

Understand the new tax system and how it applies to your business.

In June 2023, the UAE officially introduced Corporate Tax — a new law that requires businesses to pay tax on their net profits. This change brings the UAE in line with global tax practices, and it’s important for every business owner to understand how it works.

🔹 Who Needs to Pay Corporate Tax?

• UAE-based companies with net profits over AED 375,000
• Free zone entities (with exceptions)
• Foreign companies doing business in the UAE

🔹 What is the Tax Rate?

• 0% on profits up to AED 375,000
• 9% on profits above AED 375,000

🔹 What You Should Do Now:

• Register your business for corporate tax with the Federal Tax Authority (FTA)
• Keep proper accounting records
• File annual tax returns on time

At DownTown Accounting, we help businesses with corporate tax registration, return filing, and tax planning to stay fully compliant and avoid penalties.

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