The United Arab Emirates has taken a significant step toward aligning with global tax standards by implementing a federal corporate tax, effective from June 1, 2023. This change is part of the UAE’s broader strategy to diversify its economy and enhance financial transparency. What is the Corporate Tax Rate? The standard corporate tax rate in the UAE is 9% on net profits exceeding AED 375,000. Profits below this threshold are not taxed, helping protect small and medium-sized businesses. Who Needs to Register and File for Corporate Tax? Corporate tax applies to: Mainland and Free Zone companies (subject to conditions) Foreign companies with a permanent establishment in the UAE Freelancers and sole proprietors (if their income exceeds the threshold) However, certain entities are exempt, such as: Government and public sector entities Charities and public benefit organizations (approved by the Ministry of Finance) Investment funds meeting specified conditions Pension or social security funds Key Filing Requirements To stay compliant, businesses must: Register with the Federal Tax Authority (FTA) Maintain audited financial records File annual tax returns within 9 months of their financial year-end Follow transfer pricing rules (for related party transactions) Global Minimum Tax Implementation (2025 Update) Starting January 2025, the UAE will implement a 15% global minimum tax for multinational companies with revenues above €750 million, as per the OECD’s Pillar Two framework. Why This Matters for Your Business Even if your business has never dealt with corporate tax before, this regulation means: You must assess your financial reporting practices Prepare for annual compliance and filing Consider professional help to avoid penalties or missed opportunities How Saadiyat Accounting Can Help At Saadiyat Accounting, we specialize in: Corporate tax registration and return filing Bookkeeping and audit assistance Tax compliance reviews Transfer pricing documentation We ensure your business meets all tax requirements while staying focused on growth. 📞 Get in Touch Today Need help registering or filing for UAE corporate tax? Contact Us to book your free consultation with our experts.

Our finest auditors use modern auditing techniques and prepared authentic & transparent audit report by following the International Standards of Auditing .Our finest auditors use modern auditing techniques and prepared authentic & transparent audit report by following the International Standards of Auditing Our finest auditors use modern auditing techniques and prepared authentic & transparent audit report by following the International Standards of Auditing .Our finest auditors use modern auditing techniques and prepared authentic & transparent audit report by following the International Standards of Auditing