At RVG , we are committed to provide the comprehensive corporate tax consultation services to businesses operating in the UAE. With the introduction of corporate tax in the UAE, effective tax planning and compliance have become challenging for businesses to thrive. Our team of experienced Corporate Tax Professionals offers in-depth knowledge of the UAE’s tax regulations and can assist you in optimizing your tax position while ensuring full compliance.
Corporate Tax Consultation & Advisory
The standard corporate tax rate is 9%. However, there are certain exemptions and reduced rates for specific businesses.
- Natural persons and juridical persons (0% for Taxable Income up to and including AED 375,000 &Â 9% for Taxable Income exceeding AED 375,000)
- Qualifying Free Zone Persons (0% on Qualifying Income &Â 9% on Taxable Income that is not Qualifying Income as specified in Cabinet Decision No. 55 of 2023.)
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The corporate tax will become applicable from either 1 June 2023 or on 1 January 2024, depending on the financial year followed by the business.
UAE Corporate Tax will apply to all UAE Businesses and commercial activities alike, except for the extraction of natural resources which will remain subject to Emirate Level Corporate Taxation
The following Persons are automatically exempted from UAE Corporate Tax:
- The UAE Federal and Emirate Governments and their departments, authorities and other public institutions;
- Companies wholly owned and controlled by a Government Entity that carry out a Mandated Activity, and that are listed in a Cabinet Decision;
- Businesses engaged in the extraction of UAE Natural Resources or related non-extractive activities that are subject to Emirate-level taxation, subject to meeting certain conditions; and
- Qualifying Public Benefit Entities that are listed in Cabinet Decision No. 37 of 2023 or any subsequent relevant decisionsÂ
The following Persons are exempted from UAE Corporate Tax upon approval of an application submitted to the Federal Tax Authority:
- Qualifying Investment Funds that meet the prescribed conditions;
- Public or private pension or social security funds that meet the conditions specified in Ministerial Decision No. 115 of 2023; and
- UAE juridical persons that are wholly-owned and controlled by certain exempted entities and undertaking activities specified in paragraph (h) of Clause 1 of Article 4 of the Corporate Tax Law.
The Corporate Tax Return will be due within 9 months following the end of the Tax Period.
The required information includes financial statements, income and expense records, and other relevant documentation.
Penalties for late filing or non-compliance can include fines, interest, and potential legal action.
