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MCLEDGER ACCOUNTING

Corporate Tax Services

With their profound knowledge of UAE tax regulations and extensive expertise in
financial services, our team is committed to helping your business fulfill its Corporate
Tax obligations accurately and on time.

MCLEDGER ACCOUNTING

Corporate Tax Registration

Avoid complexities of corporate tax registration, ensuring your business is properly registered with the relevant authorities.
MCLEDGER ACCOUNTING

Corporate Tax Planning and Advisory

Benefit from strategic tax planning and insightful advice that helps you optimize your tax structure and minimize tax liabilities.
MCLEDGER ACCOUNTING

Corporate Tax Submissions

We handle all aspects of your corporate tax submission, preparing the necessary documents and forms to streamline the process.
MCLEDGER ACCOUNTING

Corporate Tax Audit Support

In case of tax audits, our team provides professional support, guiding you through the audit process and liaising with tax authorities on your behalf.
Why Choose McLedger's Corporate Tax Service?

FTA-Certified

Cost Effective

Tailored Solutions

Deadline Focus

MCLEDGER ACCOUNTING

What is UAE Corporate Tax (CT)?

Corporate Tax is a form of direct tax levied on the net income of corporations and other businesses. It is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions.

What is the UAE Corporate Tax Rate?

Corporate Tax will be levied at a headline rate of 9% on Taxable Income exceeding AED 375,000. Taxable Income below this threshold will be subject to a 0% rate of Corporate Tax.

Resident Taxable Persons

Taxable Income below AED 375,000

0%

Taxable Income exceeding AED 375,000

9%

Qualifying Free Zone Persons

Qualifying income

0%

Taxable Income that doesn't meet the Qualifying income definition

9%

Who is subject to UAE Corporate Tax?

Generally, the Corporate Tax applies to the following “Taxable Persons”:

  • UAE companies and other juridical persons that are incorporated or effectively managed and controlled in the UAE.
  • Natural persons (individuals) who conduct a Business or Business Activity in the UAE.
  • Non-resident juridical persons (foreign legal entities) that have a Permanent Establishment in the UAE.

Who is exempt from Corporate Tax?

  • Government and government-controlled entities.
  • People engaged in extractive and natural resource businesses that meet certain conditions.
  • Qualified public benefit entities.
  • Investment funds that meet certain conditions.
  • Public pension and social security funds.
  • Private pension funds that are regulated by the UAE government.
  • Wholly-owned and controlled UAE subsidiaries of a government entities, government-controlled entities.

The UAE governmental Cabinet also has the authority to exempt people from the tax upon suggestion from the finance minister.

Extractive in this case refers to activities involving raw materials from the Earth.

What income is exempt?

The Corporate Tax Law also exempts certain types of income from Corporate Tax. This means that a Taxable Persons will not be subject to Corporate Tax on such income and cannot claim a deduction for any related expenditure. Taxable Persons who earn exempt income will remain subject to Corporate Tax on their Taxable Income.

The main purpose of certain income being exempt from Corporate Tax is to prevent double taxation on certain types of income. Specifically, dividends and capital gains earned from domestic and foreign shareholdings will generally be exempt from Corporate Tax.

Note that a Resident Person can elect, subject to certain conditions, to not take into account income from a foreign Permanent Establishment for UAE Corporate Tax purposes.

What is a Free Zone Person?

A Free Zone Person is a juridical person or legal entity established or registered in a designated Free Zone in the UAE. This may include a branch of a Non-Resident Person registered in a Free Zone.

A Qualifying Free Zone Person can benefit from a preferential Corporate Tax rate of 0% on their “Qualifying Income” only.

In order to be considered a Qualifying Free Zone Person, the Free Zone Person must:

  • Maintain adequate substance in the UAE.
  • Derive Qualifying Income.
  • Not have made an election to be subject to Corporate Tax at the standard rates.
  • Comply with the transfer pricing requirements under the Corporate Tax Law.