Corporate Tax in the UAE

Astorts Group offers more than standard tax services — we construct individual pathways for businesses adapting to the UAE’s new corporate taxation framework. As the country shifts from a traditionally low-tax economy to a structured fiscal model, many companies face unfamiliar reporting standards, legal definitions, and strategic decisions. We help our clients move through this transition with clarity and strategic control.

Our team doesn’t just file forms. We map your company’s financial architecture against regulatory requirements and design precise workflows that minimize exposure while ensuring compliance. From tax categorization to ongoing documentation control, every stage is customized to fit your operational footprint — whether it’s mainland-based, Free Zone-registered, or internationally connected.

Astorts Group approaches tax management as a high-stakes discipline. We combine legal reasoning with operational logic to protect your company’s margins and legal standing. Through hands-on engagement and real-time adaptation, we make tax law work with your business — not against it.

Definition and scope of corporate tax in the UAE

Corporate taxation in the UAE now functions as a federal mechanism applied to commercial profit. Enacted through Federal Decree-Law No. 47 of 2022, this system redefines how legal entities report, assess, and settle earnings from UAE-based operations. It applies to financial years beginning June 1, 2023, or later.

Entities generating over AED 375,000 in annual taxable profit fall under a 9% tax rate, while smaller revenues remain outside the threshold at 0%. However, these numbers are only surface markers — the system is layered with conditions and exclusions:

1. Companies tied to oil or gas extraction continue under emirate-specific taxation.
2. Free Zone companies may retain tax-free status for eligible income, but only under strict regulatory compliance.
3. Foreign firms are taxed solely when operating on an ongoing basis inside the UAE.

Private earnings — salaries, bank interest, gains from personally held shares or property, remain untouched by the law. Additionally, intra-group transactions, mergers, and dividend flows can be excluded from taxation if handled within clearly defined participation structures.

Astorts Group deciphers these rules with surgical precision. We assess whether your operations intersect with exemption criteria, and build documentation models that prove your position beyond dispute. Legal form, economic activity, and transaction types all influence your tax footprint — we help make sense of every detail.

Astorts Group Team

We are a Professional Business Advisor Firm based in Dubai, London and Singapore, with Affiliates and Partners in many World Financial Capital City.

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Regulatory highlights and legal features

The UAE corporate tax regime is not a loose framework — it’s a multi-layered legal system that expects precision, reporting discipline, and audit readiness from all taxable persons. Its architecture includes statutory registration, strict financial reporting formats, and a binding obligation to maintain documentation that aligns with international norms. Critical legal characteristics include:

• income below AED 375,000: not taxed.
• income above that threshold: taxed at 9%.
• Free Zone profits: potentially exempt, if qualifying.
• OECD-compliant transfer pricing rules: mandatory.
• centralized registration via the FTA’s EmaraTax portal.
• return submission window: 9 months after fiscal year close.
• substance requirements: especially for QFZP classification.
• anti-avoidance rules: aggressive structures are disallowed.
• no withholding taxes on internal or outbound payments.
• income shields: for dividends, capital gains, internal restructuring.

These rules introduce both constraints and strategic openings. The law is designed to accommodate compliant businesses — but it’s not forgiving toward those who guess or delay.

Astorts Group brings tax governance into your core structure. We don’t merely advise — we embed frameworks that prevent errors, ensure defensible reporting, and allow your business to move forward with certainty. Our regulatory fluency becomes your operational safety net.

Process and compliance requirements

Corporate tax in the UAE starts not with a form, but with accurate self-definition. What kind of legal person is your entity? What kind of income does it generate? What is its relationship to other companies within or outside the country?

Only once those answers are formalized can registration proceed. Businesses must submit applications to the FTA, identify whether they qualify as Taxable Persons or Qualifying Free Zone Persons, and structure their financial statements accordingly. The key actions are:

1. Define tax identity: taxable, exempt, or QFZP.
2. Generate IFRS-compliant audited financials.
3. Record all intercompany transactions and prove market-value pricing.
4. Adjust profit to calculate tax base, filtering out disallowed expenses.
5. Submit the tax return within the nine-month window.
6. Archive all related documents for a minimum of seven years.

Astorts Group manages each of these stages with full operational oversight. Our approach isn’t to react but to anticipate — we align your tax structure to future audits, future reorganizations, and future investment movements. This is forward-looking compliance, built to adapt as your business evolves.

Astorts Group Team

We are a Professional Business Advisor Firm based in Dubai, London and Singapore, with Affiliates and Partners in many World Financial Capital City.

Contact us

Request a tailored corporate tax estimate

No two companies carry the same tax risk. That’s why flat fees or universal plans make little sense under the UAE’s corporate tax regime. The real cost of compliance depends on operational complexity, entity structure, transaction volume, and applicable exemptions.

At Astorts Group, we don’t provide templates. We provide answers. Submit your request for a confidential, custom estimate based on your business profile and risk category.

Our specialists will evaluate your setup — not just to comply, but to compete. Let us build your tax strategy with intelligence, foresight, and legal precision.