Introduction-
The UAE is entering a new era of financial transparency and corporate accountability with the rollout of corporate tax, effective from 2025. For businesses operating in the UAE, understanding and complying with these regulations is no longer optional—it’s essential.
At Kshetry & Co. Legal Advisors, we help entrepreneurs, SMEs, and multinational corporations from the UAE, USA, UK, and beyond navigate the corporate tax landscape with confidence and clarity.
What is Corporate Tax in the UAE?
Corporate tax is a levy on net business profits, and the UAE’s new federal regime is designed to balance competitiveness with global tax compliance:
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9% corporate tax on taxable income above AED 375,000
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Income below AED 375,000 is exempt, supporting small businesses and startups
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Certain free zone companies and non-profit organizations may qualify for exemptions
This move aligns the UAE with OECD global tax standards, enhancing its reputation as a transparent and investor-friendly business hub.
Who Needs to Register?
Mandatory registration applies to:
✔ Mainland companies incorporated in the UAE
✔ Free zone businesses conducting mainland trade
✔ Foreign entities with a permanent establishment in the UAE
✔ Branches of foreign companies (unless specifically exempted)
Non-compliance is costly. Failure to register or file accurately can lead to fines, penalties, and reputational risks.
Registration & Compliance Essentials
The FTA e-portal is the official platform for corporate tax registration. Key steps include:
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Assess Liability – Determine whether your business falls under the corporate tax regime.
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Prepare Documentation – Gather trade licenses, financial statements, and company incorporation details.
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Register Online – Submit your application via the FTA e-portal.
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Maintain Compliance – Keep accurate financial records, file annual returns, and make timely tax payments.
Penalties for non-compliance can exceed AED 10,000, depending on the violation, making proactive registration essential.
How Kshetry & Co. Legal Advisors Support You
Navigating corporate tax in the UAE can be complex, especially for international and multinational businesses. Our team offers:
- Comprehensive tax liability assessments for companies of all sizes
- End-to-end corporate tax registration support, ensuring accuracy and compliance
- Tailored tax planning strategies to optimize corporate structures
- Continuous updates on FTA regulations, helping you stay ahead of changes
Our goal is simple: keep your business compliant, minimize risk, and maximize growth opportunities.
Conclusion
The introduction of corporate tax in the UAE is a landmark step toward global best practices. Early registration, accurate record-keeping, and strategic planning are key to avoiding fines, building investor confidence, and maintaining a competitive edge.
At Kshetry & Co. Legal Advisors, we guide businesses through every step of the corporate tax journey, allowing you to focus on growth and expansion while we handle compliance with precision and care.
📌 Ready for stress-free corporate tax registration in the UAE?
👉 Contact us today for expert legal and tax guidance tailored to your business.
