The Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (hereinafter referred to as the “Corporate Tax Law”) was issued by His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates (“UAE President”), on 3 October 2022. The Corporate Tax Law provides the legislative basis for the introduction and implementation of a Federal Corporate Tax (“Corporate Tax”) in the UAE and is effective for financial years starting on or after June 2023.

The Federal Corporate Tax Law, established under Federal Decree-Law No. (47) of 2022, applies to all corporate entities and business activities across the UAE, encompassing both mainland businesses and free zones. This new tax regime introduces a competitive 9% rate on non-qualifying income, aiming to strengthen the UAE’s fiscal framework while preserving its business-friendly appeal. JV Thomson Chartered Accountants, with its team of expert corporate tax consultants in Dubai, is well-equipped to provide businesses with tailored tax solutions designed to ensure compliance and optimize tax efficiency.

Compliance and Corporate Tax Filing Requirements

Businesses operating in the UAE must file their corporate tax returns electronically within nine months from the end of their financial year. The introduction of Corporate Tax (CT) does not require advance tax payments. Additionally, UAE group companies can opt to file a single consolidated return, simplifying the compliance process.

How JV Thomson Can Assist You

JV Thomson Chartered Accountants offers comprehensive Corporate Tax services in the UAE, designed to help businesses comply with regulations while unlocking opportunities for growth and optimization. Our dedicated corporate tax consultants in Dubai, Sharjah, and Abu Dhabi combine in-depth expertise with a proactive approach to efficiently manage your tax obligations.

Corporate Tax Rate in UAE

The following are the Corporate Tax rates:

Resident taxable persons

0%

Tax rate applies to Taxable Income up to AED 375,000

9%

Tax Rate applies on Taxable Income that exceeds the amount AED 375,000

Qualifying Free zone persons

0%

Tax rate applies on qualifying income

9%

Tax rate applies on taxable income that does not meet the definition of qualifying income

Ongoing Compliance and Support: JV Thomson

1) CT Registration: Streamline the registration process with our expert assistance.

2) Tax Compliance: Ensure accurate preparation and filing of corporate tax returns and transfer pricing documentation.

3) Continuous Advisory: Stay informed and compliant with ongoing support and timely updates on regulatory changes.