Understanding UAE Corporate Tax - Made Simple
What Every Business Owner Should Know in 2025
CORPORATE TAX (CT)
Key Tax Rates
The UAE's tax system is designed to be business-friendly, especially for smaller companies. Here’s the breakdown:
0% Tax Rate: If your company’s yearly profit is AED 375,000 or less, you pay 0% corporate tax.
9% Tax Rate: You only pay the standard 9% tax on the portion of your profit that exceeds AED 375,000.
Special Cases & Exemptions
Not all businesses are treated the same. Here are the important exceptions:
Free Zone Businesses: Companies in qualifying free zones can often benefit from a 0% tax rate on eligible income, as long as they follow the specific rules.
Large International Companies: From 2025, very large multinational companies (with global revenue over €750 million) will be subject to a different tax rate of 15%.
Exempt Organizations: Certain entities like government bodies and charities are completely exempt from this tax.
Your Compliance Checklist
Staying compliant is straightforward. Here’s what you need to do:
Register with the FTA: Every business must register for a Tax Registration Number, even if you don't expect to pay any tax.
File Your Return: You must file your tax return and pay any tax due within 9 months after your financial year ends.
Keep Your Records: Hold onto all your financial records for at least 7 years.
Your Quick Action Plan for 2025
Check Your Status: Are you a small business, a free zone company, or something else? This determines your tax rate.
Review Your Records: Make sure your bookkeeping is clear and can easily calculate your taxable profit.
Stay Updated: Rules can be clarified over time. For the most reliable information, always check the official UAE Ministry of Finance and Federal Tax Authority (FTA) websites.
Need help understanding your UAE Corporate Tax obligations? Contact Assure Gate Tax & Accounts for expert guidance tailored to your business.