The UAE introduced a 9% corporate tax in June 2023. We help businesses understand their CT exposure, register with the FTA, compute taxable income correctly, and manage ongoing compliance – including transfer pricing documentation for related-party transactions.
In brief: UAE Corporate Tax applies at 9% on taxable income above AED 375,000, with 0% below that threshold and for free zone entities on qualifying income. Every UAE company must register with the FTA, file annual returns, and hold arm's length documentation for related-party transactions. We handle registration, filings, free zone QFZP analysis, tax group structuring, and CT planning for transactions, led by a Chartered Accountant and CFA Charterholder at fixed fees.
Since its introduction in June 2023, UAE CT has created significant compliance obligations for businesses – particularly those with free zone structures, related-party transactions, or cross-border operations.
We manage the full CT registration process with the FTA and prepare your annual corporate tax returns – ensuring correct computation of taxable income, allowable deductions, and proper group treatment where applicable.
Free zone businesses can maintain 0% CT on qualifying income – but the conditions are stricter than many assume. We assess whether your free zone entity qualifies, what income streams fall within scope, and how to structure operations to protect QFZI status.
UAE CT law requires related-party transactions to be priced on arm's-length terms, with documentation maintained above the disclosure threshold. This is a distinct, economics-based engagement, benchmarking studies, Local and Master File preparation, and FTA audit support.
See our dedicated Transfer Pricing Advisory page →UAE CT has introduced new considerations for M&A transactions – from deal structuring to the tax treatment of earn-outs, goodwill, and group restructuring. We integrate CT advice into our broader M&A advisory and due diligence work.
A no-obligation review of your current structure, free zone status, and related-party exposure.
Engagement letter with agreed deliverables and fees, signed before work begins.
FTA registration, QFZP analysis, and taxable income computation, led by our senior team.
CT return preparation, transfer pricing documentation, and FTA correspondence handled end to end.
Annual filing support and advisory as regulations and your business evolve.
All UAE juridical persons, including mainland companies and free zone entities, must register with the FTA regardless of profit level, along with foreign entities managed and controlled in the UAE. Natural persons register when their UAE business turnover exceeds AED 1 million in a calendar year. Registration is mandatory even for entities expecting 0%, including QFZPs and Small Business Relief electors.
The standard rate is 9% on taxable income above AED 375,000; income below is 0%. Qualifying Free Zone Persons pay 0% on qualifying income but 9% on non-qualifying income. Businesses with revenue up to AED 3 million may elect Small Business Relief until end of 2026. Large multinationals under Pillar Two face a 15% domestic minimum top-up tax from 2025.
A QFZP maintains adequate substance, earns qualifying income, complies with transfer pricing rules, has audited financials, and does not exceed the de minimis non-qualifying revenue threshold (lower of AED 5M or 5% of revenue). Failing any condition results in 9% tax on all income for at least five tax periods.
Yes, where they transact with related parties or connected persons, all at arm's length. The disclosure form accompanies the CT return; businesses exceeding thresholds must maintain a master file and local file. Even below thresholds, the FTA can request evidence of related-party pricing.
Target CT compliance history becomes a diligence and warranty item; QFZP status affects post-acquisition group taxation; business restructuring relief can defer tax on qualifying reorganisations; participation exemption can shelter dividends and capital gains; tax group formation (95% common ownership) affects post-close structuring.