50+ successful
CPT filings completed
CPT filings completed
Qualifying Income
assessment included
Small business
relief specialists
Corporate tax services in UAE
9% tax on profits above AED 375,000.
We handle registration, filing & optimization since June 2023.
We handle registration, filing & optimization since June 2023.
Small business relief specialists
Qualifying Income assessment included
50+ successful CPT filings completed
Why was It introduced?
The UAE introduced CPT to align with global tax standards, ensure transparency, and diversify national revenue beyond oil.
When was it introduced?
Corporate Tax became effective in the UAE on June 1, 2023, under Federal Decree-Law No. 47 of 2022.
What is Corporate Tax?
Corporate Tax (CPT) is a direct tax imposed on the net income or profit of companies operating in the UAE.
Corporate tax rates in UAE
2025 Update
Above EUR 750 million
Domestic Minimum Top-up Tax (Pillar Two)
15%
Standard CPT rate
Above AED 375,000
9%
Up to AED 375,000
Small business relief applies
0%
Our corporate tax services in Dubai & UAE
Compliance management
Tax Advisory
and Consultation
and Consultation
Tax return
filing
Tax calculation
and planning
Corporate tax
registration
Taxed on UAE-source income
Branches of Foreign Companies
Branches are not separate legal entities but extensions of the parent company. They are taxed on income generated in the UAE.
Taxed only on UAE-sourced income
Foreign Companies with
Permanent Establishment (PE)
If a foreign company has a PE in the UAE (office, employees, contracts, etc.), it's subject to tax only on the income earned within the UAE.
Not subject to Corporate Tax
Exempt entities
Some entities are fully exempt, including:
- Government entities
- Public benefit organizations (approved charities)
- Pension or investment funds (if approved by Cabinet)
Conditionally
Subject to сorporate tax
Free zone entities
Free zone companies may benefit from a 0% tax rate if they meet qualifying criteria (e.g., do not conduct business with the mainland, meet substance requirements, etc.)
Subject to сorporate tax
Mainland сompanies
These are onshore companies registered in the UAE. They are fully taxable on their worldwide or UAE-source income.
The tax applies to financial years starting on or after June 1, 2023.
Companies with December year-end will have their first corporate tax period from January 1, 2024, to December 31, 2024.
free
Get a
CPT consultation today
Experts in Small Business Relief (SBR) & Free Zone CPT
Full support:
registration, reporting,
closure & FTA compliance
55+ successful CPT filings completed in UAE
Qualifying Income assessment included
Why сhoose EFIX GRP
UAE-Focused Expertise
Fast
turnaround
Full legal & tax compliance
Not conduct business with the UAE mainland
(with limited exceptions)
Prepare and submit audited financial statements annually
Earn income from qualifying activities only
Maintain adequate economic substance in the UAE
Qualify as a Qualifying Free Zone Person (QFZP)
Free zone corporate tax and qualified income
Free Zone companies are not automatically exempt from Corporate Tax. Failing to meet any of these conditions may result in a 9% tax rate on total profits. To benefit from the 0% tax rate, a Free Zone entity must:
1.0
from audited financials
Start with accounting profit
0% on the first
AED 375,000
9% on profit exceeding AED 375,000
Apply tax rates
3.0
2.0
e.g. non-deductible expenses, exemptions
Apply adjustments
How to calculate corporate tax in UAE
Example Calculation:
AED 375,000 × 0% = AED 0
AED 225,000 × 9% = AED 20,250 payable
Company Profit:
AED 600,000
Filing deadline
Within 9 months after the end of the financial year
Submission method
Electronic filing via the FTA portal
Non-compliance risks
Late filing penalties, fines, potential audit by FTA
Required documents
Audited financial statements, tax return form, supporting schedules
Corporate tax filing requirements
Small Business Relief under UAE corporate tax
Starting from June 1, 2023, the UAE introduced Small Business Relief (SBR)
as part of its corporate tax regime to support startups and small enterprises.
as part of its corporate tax regime to support startups and small enterprises.
Who Qualifies
Entities must elect SBR annually in their tax return
Not available to MNE groups
(with consolidated global revenue over €750 million)
(with consolidated global revenue over €750 million)
CPT registration and return filing are still mandatory
Available to mainland and free zone entities (if not qualifying free zone persons)
No tax payment required, even if profit exceeds AED 375,000
Relief applies for tax periods between 2023 and 2026
The business is treated as having 0 taxable income
UAE-resident businesses with annual revenue under AED 3 million
The tax applies to financial years starting on or after June 1, 2023.
Companies with December year-end will have their first corporate tax period from January 1, 2024, to December 31,2024.
Corporate tax in UAE became effective on June 1, 2023 and applies to:
- All UAE resident entities (including Free Zone companies) on their worldwide income
- Non-resident entities with UAE-sourced income or permanent establishment in the UAE
- Natural persons conducting business activities in the UAE with a commercial license
When does corporate tax apply?
Related Services by EFIX GRP
Accounting
& Bookkeeping Services
& Bookkeeping Services
VAT Registration
& Filing
Company
Formation Services
Formation Services
HR & Payroll Administration
1.0
Access the FTA's EmaraTax portal tax.gov.ae
Complete the corporate tax registration form
3.0
2.0
Create an account or use existing VAT credentials
Receive your Tax Registration Number (TRN)
5.0
4.0
Submit required documents
Every taxable person must register for corporate tax through the EmaraTax platform within 3 months from the start of their first tax period or commencement of business activities.
How to register for corporate tax?
File by December 31, 2025
March 31, 2025
File by March 31, 2026
June 30, 2025
File by September 30, 2025
December 31, 2024
Corporate tax returns must be filed within 9 months after the end of your tax period. Filing deadlines by tax period end:
Payment deadline
Tax must be paid simultaneously with return filing.
The FTA does not send separate payment notices - it's your responsibility to calculate, file, and pay on time. Extension requests may be considered by FTA in exceptional circumstances, but must be submitted before the original deadline.
The FTA does not send separate payment notices - it's your responsibility to calculate, file, and pay on time. Extension requests may be considered by FTA in exceptional circumstances, but must be submitted before the original deadline.
AED 20,000
False/misleading information
5% of unpaid tax amount
Payment Penalties
AED 2,000 per month
Failure to file
Maximum AED 50,000
Late: AED 500 to AED 20,000
Filing Penalties
Depending on delay duration
Late: AED 10,000
Registration penalties
Waiver available until July 2025
