Corporate Tax
Tax Rates and Taxable Income in UAE
Taxable Income Range | Tax Rate | Notes |
---|---|---|
Up to AED 375,000 | 0% | Encourages small businesses and startups. |
Over AED 375,000 | 9% | Applies to taxable income exceeding the threshold. |
Qualifying Free Zone Entities | 0% | Subject to compliance with regulatory conditions (e.g., no business with mainland UAE). |
Multinational Companies | 15% (under OECD Pillar Two) | Applies to entities meeting the global minimum tax threshold under OECD’s BEPS framework. |
Included in Taxable Income | Exemptions |
---|---|
Income from business activities within the UAE | Government Entities: Fully owned by the UAE government. |
Dividends and capital gains from UAE and foreign sources | Investment Funds: Meeting specified conditions. |
Royalties and intellectual property income | Public Benefit Organizations: Serving specific social or public purposes. |
Interest and banking income | Free Zone Entities: Provided they meet compliance. |
Revenue from mainland-related transactions (for Free Zones) | Income from Agriculture (Specific cases). |
Expert Corporate Tax Services in UAE | Aey Accounting
What is Corporate Tax?
Corporate tax is a tax imposed on the net income or profit of corporations and businesses. This tax is calculated based on the income earned from business operations, minus any allowable deductions and expenses. The primary purpose of corporate tax is to generate revenue for the government, which is used to fund public services and infrastructure. In many jurisdictions, including the UAE, corporate tax compliance involves detailed record-keeping, accurate reporting, and timely submission of tax returns.
Why is Corporate Tax Important in the UAE?
Corporate tax is crucial in the UAE as it ensures that businesses contribute fairly to the country’s economic development. Compliance with corporate tax regulations is essential for maintaining a positive business reputation and avoiding legal penalties. With the UAE’s evolving tax landscape, businesses must stay informed about the latest regulations and requirements to ensure accurate and timely tax filings. Proper management of corporate tax obligations also helps businesses optimize their tax liabilities, improve financial planning, and enhance overall financial health, supporting sustainable growth and profitability.
How Can AEY Accounting Help?
AEY Accounting offers expert assistance with corporate tax compliance and management in the UAE. Our services include preparing and filing accurate tax returns, ensuring compliance with UAE tax laws, and providing strategic advice on tax planning to minimize liabilities. Our team of professionals is well-versed in the latest tax regulations and can help you navigate the complexities of corporate tax. We also assist with corporate tax audits, providing thorough documentation and representation to ensure smooth and efficient audit processes. By partnering with AEY Accounting, you can focus on your core business activities while we handle your corporate tax obligations, ensuring accuracy, compliance, and peace of mind.
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Additional Notes:
- Businesses operating in designated free zones enjoy tax benefits provided they comply with local regulations, such as not conducting business directly with the mainland.
- Losses: Businesses can carry forward losses and deduct them from future taxable income, subject to limitations.
- Certain incentives apply to R&D-intensive industries or innovation-driven entities.
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