Corporation Tax

UAE Corporate Tax, Simplified.

Everything you need to know about the recent changes in the UAE regarding corporation taxes. Learn more about UAE corporate tax rates and thresholds, and how to operate efficiently.


UAE Corporate Tax explained

Historically, the UAE has always been known for its extremely low and often free business and personal taxes. In 2023, things have changed. The UAE Ministry of Finance (MoF) recently revealed their decision to introduce a new federal corporate tax system. This system is set to take effect for financial years beginning on or after June 1, 2023.

Often misunderstood to be a negative change, the new changes will enable further growth and investment in infrastructure, education and healthcare cross the region.

All companies, regardless of their type or jurisdiction, are required to register for corporate tax and a corporation tax return has to be submitted each year (even if no tax is due).

The current rate of corporation tax is 9% on net profits above AED 375,000. Simply, this equates to a tax free allowance of AED 375,000 (approx $100,000 USD).

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Let's look at an example

To make this clearer to understand, let’s break it down with a example business scenario.


This business would need to keep financial records and file an annual return.


Strive’s in-house accounting services are recommended for all companies to ensure full bookkeeping and compliance are all kept up to date.

Choose HiFalcony for a seamless business setup experience in the thriving Saudi Arabian market. Reach out to us, and let's embark on this journey of growth together.

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Frequent UAE Accounting Questions

Yes. Accounts must be kept inline with International Financial Reporting Standards (IFRS). Strive offers low cost monthly accounting packages to make this easy.


A small number of business activities can apply for an exemption to corporation tax. Some corporate entities such as non-trading companies may also have some exemptions available.


All companies including free zone and mainland companies must register for corporation tax.


There have been no changes to income tax which is currently 0% for UAE residents


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