The Federal Tax Authority (FTA) has announced the opening of the pre-registration process for UAE corporate tax for specific companies and entities. These businesses must register for corporate tax in Dubai, UAE, based on the FTA's guidelines. It is essential to identify if your business is subject to this notification and needs to complete the early registration process or if it can register later.
Seeking assistance from corporate tax consultants in Dubai is recommended to determine if this notification applies to your business. These professionals can assist you with corporate tax registration in UAE using the EmaraTax platform.
Who Must Register for Corporate Tax in UAE?
UAE corporate tax shall be imposed on businesses' taxable income at the following rates:
- Taxable income up to AED 375,000 is subject to 0% corporate tax in Dubai, UAE
- The UAE corporate tax rate is 9% for income exceeding AED 375,000
- Multinational corporations that fall under Pillar 2 of the BEPS 2.0 framework and are subject to OECD Base Erosion and Profit-Sharing laws will be subject to a 15% corporate tax rate. This applies to corporations with combined worldwide revenues exceeding AED 3.15 billion.
Documents Needed for Corporate Tax Registration in Dubai, UAE
Corporate tax registration in UAE requires businesses to prepare and submit the necessary documents online. Following are the necessary documents required for corporate tax registration in UAE.
- Trade license copy (should not be expired).
- Owner/partner's passport copy (should not be expired).
- Emirates ID of the owner/partners who hold the license (should not be expired).
- Memorandum of Association (MOA) – Or – Power of Attorney (POA)
- Concerned individual’s contact details (mobile number and mail address)
- Company contact details (complete address and P.O. Box).
- Annual Financial Audit Report.
Corporate Tax Rates in Dubai, UAE (2025 Update)
Dubai, part of the United Arab Emirates (UAE), introduced a federal corporate tax in 2023. Here's a clear breakdown of how it works:
- Standard Corporate Tax Rate: 9% on business profits exceeding AED 375,000.
- Tax-Free Threshold: Businesses earning up to AED 375,000 annually are exempt to support small enterprises and startups.
- Free Zone Entities: Companies operating in designated free zones may continue to benefit from 0% tax—if they meet specific regulatory conditions and do not conduct business with the mainland.
- Global Compliance: The tax aligns Dubai with global standards, especially the OECD's Base Erosion and Profit Shifting (BEPS) framework.
Benefits of Corporate Tax Registration in Dubai
- Credibility and Transparency: Registration of a corporate tax enhances the credibility level of business with stakeholders and government regulators.
- Competitive Tax Rates: Dubai is the most attractive city to businesses with its competitive corporate tax rate of 9% levied on profits exceeding AED 375,000.
- Avoiding Future Tax Issues: Proper tax registration ensures compliance, minimizing the possibility of penalties, audits, and litigations.
- Strong Economic Environment: corporate tax registration in Dubai positions a business in an auspicious economic environment that is stable and growing.
- Double Taxation Avoidance Agreements (DTAAs): Corporation tax registration in Dubai enables firms to avail themselves of DTAAs, thereby preventing double taxation on cross-border income.
- Strategic Location: The geographical advantage of Dubai as a global business hub offers easy access to international markets and trade routes.
Corporate Tax Registration Consultant in UAE
Corporate tax is a set of regulations that will bring more transparency and certainty to businesses in the United Arab Emirates. The CT is drafted to protect investors, encourage entrepreneurship, and boost the economy.
The new corporate tax in the UAE will contribute to leveling the playing field for businesses and strengthen protection for investors. Additionally, the law is expected to promote business ventures and strengthen the economy.
Getting registered for corporate tax can be a daunting process because businesses have so much to do. So, it is advisable to seek help from any Corporate Tax Registration Consultant in UAE. Consultants can help you with the corporate tax UAE registration process and also provide you with comprehensive and quick corporate tax registration services tailored to meet the company's needs.
Reyson Badger, a leading corporate tax registration consultant in UAE, can help. Our experienced and knowledgeable team can guide you through the entire registration process, from preparing the necessary paperwork to filing the appropriate forms with the relevant authorities. We can also provide you with all the necessary advice and assistance to ensure your registration is successful and in compliance with the local tax laws.