UAE Corporate Tax
Corporate Tax is a form of direct tax levied on the net income or profit of corporations and other businesses. On 31 January 2022, the UAE Ministry of Finance announced the introduction of the federal corporate tax in the UAE, effective from financial years starting on or after 01 June 2023.
Generally such taxes are computed on the accounting net profit/income of a business, after making adjustments as per UAE Corporate Tax Law.
Registration to Corporate Tax is mandatory for all companies.
Businesses in the UAE need to take immediate action on their corporate tax obligations as the Federal Tax Authority (FTA) has announced the timelines for submitting the registration applications.
The deadline for submitting the corporate tax registration application is based on the date of license issue for the existing UAE companies. The first deadline falls on May 31st 2024 and proceeds as per table:
Taxable entities that fail to register for corporate tax as per timelines will incur a hefty penalty of AED 10,000.
UAE Corporation Tax (CT) is applicable at the following rates:
