How to Optimize Corporate Tax Planning in the UAE for Maximum Benefit
The United Arab Emirates (UAE) has always been seen as an attractive destination for business owners because of its lucrative tax laws…
Read article
Corporate tax
Corporate tax, filed by an FTA approved tax agency.
The UAE applies 9% corporate tax on taxable income above AED 375,000, with a 0% band below it and special rules for free zones and small businesses. ZS registers your company, prepares and files the return, and as an FTA approved Tax Agency deals with the Federal Tax Authority on your behalf.
9%On taxable income above AED 375,000
9 monthsFiling deadline after year end
FTA approvedWe represent you before the FTA
Key facts
- UAE corporate tax applies to financial years starting on or after 1 June 2023 at 9% on taxable income above AED 375,000 and 0% below that threshold.
- Every taxable person, including free zone companies and most mainland businesses, must register with the FTA and obtain a corporate tax registration number, even if no tax is payable.
- The corporate tax return and payment are due within nine months of the end of the tax period. A 31 December year end files by 30 September.
- Small business relief is available to resident businesses with revenue of AED 3 million or less in the relevant and all previous tax periods, up to 31 December 2026.
- Qualifying free zone persons can access a 0% rate on qualifying income if they meet substance, audited accounts and de minimis conditions.
- ZS is registered with the FTA as a Tax Agency and can file, correspond and represent your company before the authority.
Corporate tax in the UAE at a glance
| Item | Rule |
|---|---|
| Standard rate | 9% on taxable income above AED 375,000 |
| Below threshold | 0% on taxable income up to AED 375,000 |
| Registration | Mandatory for all taxable persons, including free zone and exempt income companies |
| Return and payment | Within nine months of the end of the tax period |
| Small business relief | Revenue of AED 3 million or less, elected in the return, until end of 2026 |
| Free zones | 0% on qualifying income for qualifying free zone persons that meet the conditions |
| Records | Keep accounting records for seven years; audited accounts required above AED 50 million revenue and for qualifying free zone persons |
What ZS does
Registration
We register your company on EmaraTax, obtain the corporate tax registration number and set the correct tax period. Late registration attracts an administrative penalty, so new companies should register within three months of incorporation.
Return preparation and filing
We convert your IFRS accounts into taxable income: adjusting for exempt income, non deductible expenses, interest limitation, related party transactions and any relief elected. The return is prepared, reviewed and filed through EmaraTax with the payment schedule confirmed to you in advance.
Small business relief and free zone qualification
We assess whether you qualify for small business relief, or for the 0% qualifying free zone person regime, and document the position so it survives an FTA query. Free zone status in particular depends on substance, qualifying activities, the de minimis test and audited financial statements, and getting one of them wrong removes the benefit for five years.
Transfer pricing
Transactions with related parties and connected persons must be at arm's length. We prepare the related party disclosure and, where thresholds are met, the master file and local file.
FTA representation
As an FTA approved Tax Agency, ZS can correspond with the FTA, respond to audits and clarification requests, and file reconsiderations and voluntary disclosures on your behalf. You are copied on everything and nothing is submitted without your approval.
Corporate tax planning that stays inside the rules
Legitimate planning includes choosing the right tax period, grouping eligible entities, timing capital expenditure, structuring intra group financing within the interest limitation rules and using the participation exemption for qualifying shareholdings. We do not recommend arrangements that fail the general anti abuse rule. Read our guide on corporate tax planning in the UAE.
Excise tax and customs audit
Excise tax
If you import or produce excise goods such as tobacco, energy drinks, carbonated and sweetened drinks, ZS handles FTA registration, excise returns and the detailed stock records needed to report liabilities without penalties.
Customs audit
For importers and exporters, we review customs declarations, valuation and documentation to confirm compliance with UAE customs regulations and reduce the risk of penalties when customs authorities audit your records.
Who this service is for
- Mainland LLCs and sole establishments across Abu Dhabi, Dubai and the Northern Emirates
- Free zone companies in ADGM, KIZAD, DMCC, JAFZA, DIFC and others assessing qualifying status
- Groups with related party transactions that need transfer pricing support
- Companies that have received an FTA notice and need a Tax Agency to respond
What is included
What the service covers.
Registration and TRN
EmaraTax registration, tax period selection and penalty avoidance for new entities.
Return filing
Taxable income computation, return preparation, review and filing before the nine month deadline.
Reliefs and exemptions
Small business relief, participation exemption and free zone qualification, documented.
Transfer pricing
Related party disclosures, master file and local file where thresholds apply.
FTA representation
Audits, clarifications, reconsiderations and voluntary disclosures handled by an approved Tax Agency.
Planning
Grouping, timing and structuring options that reduce tax within the law.
How it works
From first call to done.
STEP 01
Health check
Registration status, tax period, revenue threshold, free zone position and record keeping reviewed in the free consultation.
STEP 02
Fixed fee proposal
Registration, annual filing or a full compliance calendar, priced in writing.
STEP 03
Computation and filing
Accounts adjusted to taxable income, return prepared and filed on EmaraTax with your approval.
STEP 04
Ongoing
Deadline reminders, FTA correspondence and updates when the law changes.
FAQ
Questions we hear every week.
Anything else, message us on WhatsApp and a consultant replies during office hours.
When is the UAE corporate tax return due?
Within nine months of the end of the tax period. A company with a 31 December 2025 year end must file and pay by 30 September 2026. A 30 June year end files by 31 March the following year.
Do I need to register if my income is below AED 375,000?
Yes. Registration is mandatory for all taxable persons regardless of income. The 0% rate applies to the first AED 375,000 of taxable income, but the return must still be filed.
What is small business relief?
A resident taxable person with revenue of AED 3 million or less in the current and all previous tax periods can elect to be treated as having no taxable income for that period, until the tax period ending on or before 31 December 2026. It is elected in the return and is not available to qualifying free zone persons or members of multinational groups.
Do free zone companies pay corporate tax?
Free zone companies are within the corporate tax regime and must register and file. A qualifying free zone person that meets the substance, qualifying income, de minimis and audited accounts conditions pays 0% on qualifying income and 9% on other income.
What is an FTA approved tax agency?
A firm registered with the Federal Tax Authority that is authorised to act on behalf of taxable persons: filing returns, corresponding with the FTA, and representing clients in audits and disputes. ZS Chartered Accountant Consultants holds this registration.
What are the penalties for late filing?
Late registration carries a fixed administrative penalty, and late return filing accrues monthly penalties that increase after the first year, plus penalties on unpaid tax. Filing on time with correct figures is far cheaper than fixing it later.
Ready when you are. First hour free.
Tell us what you need and a consultant replies within one business day with a fixed quote.
Blog
View all articles Corporate tax guides from our team.
UAE Corporate Tax Reform 2025: Key Changes and Implications for Businesses
The UAE has been a well-known business-friendly location with tax friendly policies for companies and individuals alike making it a preferred destination…
Read article
Can Corporation Tax Be Paid in Installments?
Can corporate tax be paid in installments? With the complexities of tax laws, this is a crucial question many businesses face today.
Read article