The introduction of Corporate Tax in the UAE marks a significant shift in the region's fiscal landscape. As businesses prepare for 2025, understanding compliance requirements and strategic planning opportunities has never been more critical.
This comprehensive guide walks you through everything you need to know about UAE Corporate Tax, from registration to filing, ensuring your business remains compliant while optimizing your tax position.
9%
Standard Tax Rate
Above AED 375,000
0%
Free Zone Rate
With conditions
3M
Small Business Relief
Revenue threshold (AED)
Key Takeaways
Corporate tax rate of 9% applies to taxable income exceeding AED 375,000
Free zone businesses may qualify for 0% rate under specific conditions
Small business relief available for businesses under AED 3 million revenue
Registration deadline varies based on business establishment date
Understanding the UAE Corporate Tax Framework
The UAE Federal Decree-Law No. 47 of 2022 introduced a federal corporate tax on business profits. This legislative framework represents a carefully balanced approach to taxation that maintains the UAE's competitive advantage while aligning with international standards.
The tax applies to all businesses and commercial activities in the UAE mainland and free zones, with specific exemptions for certain entities and activities. Understanding these nuances is essential for accurate tax planning and compliance.
Who is Subject to Corporate Tax?
Corporate tax applies to UAE companies and other juridical persons, non-resident juridical persons with a permanent establishment or nexus in the UAE, and natural persons (individuals) conducting business activities in the UAE under a commercial license.
Tax Rates and Thresholds
The UAE has adopted a progressive approach to corporate taxation with three distinct tax brackets designed to support small businesses while ensuring larger enterprises contribute appropriately.
Taxable Income
Tax Rate
Up to AED 375,000
0%
Above AED 375,000
9%
Qualifying Free Zone Persons
0% (under conditions)
This tiered structure ensures that small businesses and startups are not unduly burdened while maintaining a competitive rate for larger enterprises compared to global standards.
Registration Requirements and Deadlines
Timely registration with the Federal Tax Authority (FTA) is crucial for compliance. The registration timeline depends on when your business was established and when your financial year begins.
Critical Registration Deadlines
1
Existing businesses
Must register within nine months from the start of the first tax period
2
New businesses
Must register within three months from the date of incorporation
3
Free zone businesses
Follow the same registration requirements but may elect special tax treatment
Exemptions and Special Provisions
The UAE Corporate Tax law includes several exemptions designed to support specific sectors and maintain the country's position as a regional hub for certain activities.
Entities Exempt from Corporate Tax
Government Entities
UAE government entities and wholly government-owned companies
Extractive Businesses
Natural resource extraction businesses subject to emirate-level taxation
Investment Funds
Qualifying investment funds meeting specific conditions
Public Benefit Entities
Registered charities and public benefit organizations
How PRF Can Help
Navigating the complexities of UAE Corporate Tax requires expert guidance and strategic planning. PRF Management Consultancy offers comprehensive tax advisory services to ensure your business remains compliant while optimizing your tax position.
Our Corporate Tax Services Include:
Tax registration and compliance management
Strategic tax planning and optimization
Transfer pricing documentation and compliance
Free zone tax treatment advisory
Tax return preparation and filing
Schedule a Consultation
Conclusion
The UAE Corporate Tax regime represents a new era for businesses operating in the Emirates. While it introduces new compliance obligations, it also offers opportunities for strategic tax planning and optimization.
Early preparation and expert guidance are key to ensuring smooth compliance and maximizing the benefits available under the new framework. Contact PRF Management Consultancy today to discuss how we can support your corporate tax journey.
"Proactive tax planning and early preparation are essential for businesses to navigate the new corporate tax landscape successfully. The key is understanding not just compliance requirements, but strategic opportunities within the framework."
— PRF Tax Advisory Team
Home
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Article
Corporate Tax
UAE Corporate Tax 2025: Your Complete Compliance Guide
PRF Experts
5:54 PM PST
November 3, 2025
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Home
Insights
Article
Corporate Tax
UAE Corporate Tax 2025: Your Complete Compliance Guide
PRF Experts
Nov 3
This comprehensive guide walks you through everything you need to know about UAE Corporate Tax, from registration to filing, ensuring your business remains compliant while optimizing your tax position.
9%
Standard Tax Rate
Above AED 375,000
0%
Free Zone Rate
With conditions
3M
Small Business Relief
Revenue threshold (AED)
Key Takeaways
Corporate tax rate of 9% applies to taxable income exceeding AED 375,000
Free zone businesses may qualify for 0% rate under specific conditions
Small business relief available for businesses under AED 3 million revenue
Registration deadline varies based on business establishment date
Understanding the UAE Corporate Tax Framework
The UAE Federal Decree-Law No. 47 of 2022 introduced a federal corporate tax on business profits. This legislative framework represents a carefully balanced approach to taxation that maintains the UAE's competitive advantage while aligning with international standards.
The tax applies to all businesses and commercial activities in the UAE mainland and free zones, with specific exemptions for certain entities and activities. Understanding these nuances is essential for accurate tax planning and compliance.
Who is Subject to Corporate Tax?
Corporate tax applies to UAE companies and other juridical persons, non-resident juridical persons with a permanent establishment or nexus in the UAE, and natural persons (individuals) conducting business activities in the UAE under a commercial license.
Tax Rates and Thresholds
The UAE has adopted a progressive approach to corporate taxation with three distinct tax brackets designed to support small businesses while ensuring larger enterprises contribute appropriately.
Taxable Income
Tax Rate
Up to AED 375,000
0%
Above AED 375,000
9%
Qualifying Free Zone Persons
0% (conditions)
This tiered structure ensures that small businesses and startups are not unduly burdened while maintaining a competitive rate for larger enterprises compared to global standards.
Registration Requirements and Deadlines
Timely registration with the Federal Tax Authority (FTA) is crucial for compliance. The registration timeline depends on when your business was established and when your financial year begins.
Critical Registration Deadlines
1
Existing businesses
Must register within nine months from the start of the first tax period
2
New businesses
Must register within three months from the date of incorporation
3
Free zone businesses
Follow the same registration requirements but may elect special tax treatment
Exemptions and Special Provisions
The UAE Corporate Tax law includes several exemptions designed to support specific sectors and maintain the country's position as a regional hub for certain activities.
Entities Exempt from Corporate Tax
Extractive Businesses
Natural resource extraction businesses subject to emirate-level taxation
Government Entities
UAE government entities and wholly government-owned companies
Investment Funds
Qualifying investment funds meeting specific conditions
Public Benefit Entities
Registered charities and public benefit organizations
How PRF Can Help
Navigating the complexities of UAE Corporate Tax requires expert guidance and strategic planning. PRF Management Consultancy offers comprehensive tax advisory services to ensure your business remains compliant while optimizing your tax position.
Our Corporate Tax Services Include:
Tax registration and compliance management
Strategic tax planning and optimization
Transfer pricing documentation and compliance
Free zone tax treatment advisory
Tax return preparation and filing
Schedule a Consultation
Conclusion
The UAE Corporate Tax regime represents a new era for businesses operating in the Emirates. While it introduces new compliance obligations, it also offers opportunities for strategic tax planning and optimization.
Early preparation and expert guidance are key to ensuring smooth compliance and maximizing the benefits available under the new framework. Contact PRF Management Consultancy today to discuss how we can support your corporate tax journey.
Table of Contents
1
Understanding the Framework
2
Tax Rates & Thresholds
3
Registration Requirements
4
Exemptions & Provisions
5
How PRF Can Help
"Proactive tax planning and early preparation are essential for businesses to navigate the new corporate tax landscape successfully. The key is understanding not just compliance requirements, but strategic opportunities within the framework."
— PRF Tax Advisory Team
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The introduction of Corporate Tax in the UAE marks a significant shift in the region's fiscal landscape. As businesses prepare for 2025, understanding compliance requirements and strategic planning opportunities has never been more critical.
This comprehensive guide walks you through everything you need to know about UAE Corporate Tax, from registration to filing, ensuring your business remains compliant while optimizing your tax position.
9%
Standard Tax Rate
Above AED 375,000
0%
Free Zone Rate
With conditions
3M
Small Business Relief
Revenue threshold (AED)
Key Takeaways
Corporate tax rate of 9% applies to taxable income exceeding AED 375,000
Free zone businesses may qualify for 0% rate under specific conditions
Small business relief available for businesses under AED 3 million revenue
Registration deadline varies based on business establishment date
Understanding the UAE Corporate Tax Framework
The UAE Federal Decree-Law No. 47 of 2022 introduced a federal corporate tax on business profits. This legislative framework represents a carefully balanced approach to taxation that maintains the UAE's competitive advantage while aligning with international standards.
The tax applies to all businesses and commercial activities in the UAE mainland and free zones, with specific exemptions for certain entities and activities. Understanding these nuances is essential for accurate tax planning and compliance.
Who is Subject to Corporate Tax?
Corporate tax applies to UAE companies and other juridical persons, non-resident juridical persons with a permanent establishment or nexus in the UAE, and natural persons (individuals) conducting business activities in the UAE under a commercial license.
Tax Rates and Thresholds
The UAE has adopted a progressive approach to corporate taxation with three distinct tax brackets designed to support small businesses while ensuring larger enterprises contribute appropriately.
Taxable Income
Tax Rate
Up to AED 375,000
0%
Above AED 375,000
9%
Qualifying Free Zone Persons
0% (under conditions)
This tiered structure ensures that small businesses and startups are not unduly burdened while maintaining a competitive rate for larger enterprises compared to global standards.
Registration Requirements and Deadlines
Timely registration with the Federal Tax Authority (FTA) is crucial for compliance. The registration timeline depends on when your business was established and when your financial year begins.
Critical Registration Deadlines
1
Existing businesses
Must register within nine months from the start of the first tax period
2
New businesses
Must register within three months from the date of incorporation
3
Free zone businesses
Follow the same registration requirements but may elect special tax treatment
Exemptions and Special Provisions
The UAE Corporate Tax law includes several exemptions designed to support specific sectors and maintain the country's position as a regional hub for certain activities.
Entities Exempt from Corporate Tax
Government Entities
UAE government entities and wholly government-owned companies
Extractive Businesses
Natural resource extraction businesses subject to emirate-level taxation
Investment Funds
Qualifying investment funds meeting specific conditions
Public Benefit Entities
Registered charities and public benefit organizations
How PRF Can Help
Navigating the complexities of UAE Corporate Tax requires expert guidance and strategic planning. PRF Management Consultancy offers comprehensive tax advisory services to ensure your business remains compliant while optimizing your tax position.
Our Corporate Tax Services Include:
Tax registration and compliance management
Strategic tax planning and optimization
Transfer pricing documentation and compliance
Free zone tax treatment advisory
Tax return preparation and filing
Schedule a Consultation
Conclusion
The UAE Corporate Tax regime represents a new era for businesses operating in the Emirates. While it introduces new compliance obligations, it also offers opportunities for strategic tax planning and optimization.
Early preparation and expert guidance are key to ensuring smooth compliance and maximizing the benefits available under the new framework. Contact PRF Management Consultancy today to discuss how we can support your corporate tax journey.
"Proactive tax planning and early preparation are essential for businesses to navigate the new corporate tax landscape successfully. The key is understanding not just compliance requirements, but strategic opportunities within the framework."
— PRF Tax Advisory Team
Home
Insights
Article
Corporate Tax
UAE Corporate Tax 2025: Your Complete Compliance Guide
PRF Experts
5:54 PM PST
November 3, 2025
Related Insights
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Don’t Missed Subscribed!
About Us
Legality
Contact Us
2801, Aspin Commercial Tower Sheikh Zayed Road, Dubai
Office no 402 , LMS Finswell sakore Nagar Viman nagar road, pune 411014
+971-56-459-3907
support@prfmc.com
Don’t Missed Subscribed!
About Us
Legality
Contact Us
2801, Aspin Commercial Tower Sheikh Zayed Road, Dubai
Office no 402 , LMS Finswell sakore Nagar Viman nagar road, pune 411014
+971-56-459-3907
support@prfmc.com