Navigating the UAE’s Corporate Tax Landscape: A Guide for Businesses
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Navigating the UAE’s Corporate Tax Landscape: A Guide for Businesses

The United Arab Emirates (UAE) will implement a federal corporate tax regime beginning from 1st of June, 2023 which will entail the following: The fact that this is a very important step requires businesses that operate in the region to adjust and ensure meeting the requirements and restrictions that come along with the new rules. Here in ZR Chartered Accountant Consultants, we appreciate that corporate tax is very complicated and for this reason, our services are centered on facilitating companies to get a corporate tax registration UAE and putting in place other tax strategies.

This blog has the aim of providing information to companies who find themselves lost in the maze of corporate tax filed in the country. Along this line, we shall get to know vital areas such as registration fees, taxable income, un-taxed income (Exemption) and the role played by a corporate tax consultant Dhabi who is competent.

Who will be required to file the corporate tax returns in UAE?

Any business incorporated locally and meets the income threshold of AED 375,000 (roughly USD 102,000) is legally required to apply for the business corporate tax. This includes:

• Partnership Limited Liability Companies (LLCs)

• Public Joint-Stock Companies (PJSCs)

• However, special economic zones (with some exclusions)

• One primary trade of the Sole Establishment (if exceeded the taxable income threshold)

Corporate tax registration process

Certainly, the UAE has developed an easy-to-fill-in online registration procedure for corporate tax. Here’s a simplified overview:

1. Register for a Tax Registration Number (TRN): Companies get their first step when they register with the Federal Tax Authority (FTA) to be issued with the TRN. This can be done through their website in an electronic format.

2. Submit Required Documents: Documents that one needs to register include a copy of trade/commerce licenses, a copy of passports/ID cards of owners/partners, as well as a Memorandum of Association.

3. Activate Your Online Account: Moreover, the registration process is followed by the issuance ofz TRN and activation of an online account for tax proceedings.

What are the Taxable Income and Exemptions?

The UAE corporate tax rule whereby a 9% rate is charged on a company’s taxable income. Gross income payable as tax is mostly the net profit of the business after deducting the legitimate costs incurred as expenditures.

• Companies with a taxable income below DH 375,000 are exempted from taxation.

• Onshore development or the uses of the resources from the earth.

• Among the variety of activities to qualify for the designated Free Zones

Corporate tax consultancy has several advantages.

ZS Chartered Accountant Consultants: Our UAE Corporate Tax Regulation Guide

We do have an expert team of professionals at ZS Chartered Accountant Consultants who will help you with your business corporate tax queries to the best of their abilities. Through our full-service package, which includes registration assistance, ongoing tax planning, and compliance monitoring, we provide our customers with the support they need to make informed decisions.

Now that corporate tax has been introduced in the UAE, the need for a corporate tax consultant who is qualified as an expert can’t be overemphasized as this partnership is credited with assisting organizations to better understand the new regulations and work them into their business structure.

Contact ZS chartered accountants in Abu Dhabi now to book a free consultation and look at the various ways we can assist your business adjust in the fast-changing tax landscape of the UAE.