Corporate Tax in the UAE

Starting June 1, 2023, the United Arab Emirates introduced a federal corporate tax at a rate of 9%. This is a fundamental change in the country's tax system, requiring businesses to prepare, adapt, and strictly comply with the law. MIRAD provides a full range of services for corporate tax support: from registration to filing declarations and optimizing tax burdens.

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Who is subject to corporate taxation?

All legal entities registered in the UAE (Mainland and Free Zone companies).
Foreign legal entities with a permanent establishment in the UAE.
Individual entrepreneurs and freelancers with an income of over 1 million AED per year.

What is subject to corporate tax?

Taxation applies to net profit based on financial statements according to IFRS standards.

Taking into account adjustments, including:

unrealized profits and losses;
exempt income (dividends, capital gains);
non-deductible expenses;
transactions with affiliated parties;
transfer pricing rules;
loss carryforwards and tax credits.

What benefits are provided?

Small Business Relief — exemption for companies with a turnover of up to 3 million AED per year.
Free Zone Benefits — 0% rate for qualifying income under certain conditions (only for specific Free Zones).
Group registration and consolidation — the ability to account for losses within a group of companies.

HowTo: Corporate Tax Procedure in the UAE

Determine if the company's income exceeds the threshold of 1 million AED.
Prepare financial statements in accordance with IFRS.
Identify exempt income and deductible expenses.
Register with the Federal Tax Authority (FTA) and obtain a TRN (Tax Registration Number).
Record all transactions with affiliated parties.
Apply transfer pricing rules and prepare documentation.
Annually file a Corporate Tax declaration through the FTA portal.
Keep financial and tax documentation for at least 7 years.

Corporate Tax with MIRAD

We help companies register, structure income, maintain IFRS accounting, and file declarations on time — with protection from risks and penalties.

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What MIRAD does for you

Company registration with the FTA and obtaining a TRN.
Structuring income and expenses according to legal requirements.
Accounting and reporting based on IFRS.
Calculation of the taxable base and benefits.
Preparation and submission of tax declarations.
Transfer pricing documentation.
Full support during FTA audits and inquiries.
Tax risk assessment and optimization recommendations.

Why choose MIRAD

We work according to IFRS — reports are ready for submission and audit.
Knowledge of the UAE tax and legal framework.
10+ years of experience with companies of various industries and scales.
Deep expertise in transfer pricing and compliance.
We help not only with reporting but also with reducing tax burdens.
Support in both Russian and English languages.

FAQ: Corporate Tax in the UAE

❓ What is the corporate tax rate in the UAE?
✅ 9% on profits over 375,000 AED. No tax is levied below this amount.

❓ Are companies in Free Zones taxed?
✅ Yes, but a preferential rate of 0% may apply to qualifying income under certain conditions.

❓ How often is the Corporate Tax declaration filed?
✅ Once a year, within the deadlines set by the FTA.

❓ Do freelancers need to pay tax?
✅ Yes, if their income exceeds 1 million AED per year.

❓ What are the penalties for non-compliance?
✅ From 10,000 to 500,000 AED, as well as possible license and bank account suspension.

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