Corporate Tax Registration

ABS > Corporate Tax Registration

Corporate Tax in the UAE

Starting June 1, 2023, the UAE introduced Corporate Tax (CT) at the federal level, applying to business profits. This marks a significant shift in the financial landscape and aligns the UAE with global tax standards.

Corporate Tax Registration

ABS offers reliable Corporate Tax Registration services to help you remain compliant with new UAE laws. Our expert team ensures your business is registered properly, avoiding future penalties.

Impact of Corporate Tax

The introduction of CT will incur initial costs related to implementation, employee training, and compliance. Businesses may revise pricing to accommodate tax liabilities, potentially impacting consumer demand.

Over time, corporate tax compliance is expected to boost investor confidence and economic transparency, contributing to sustainable growth.

Who Must Register for Corporate Tax?

  • UAE-based (domestic) companies
  • Foreign companies with a permanent establishment in the UAE
  • Non-residents earning UAE-sourced income

Resident companies are taxed on worldwide income, while non-residents are taxed only on UAE-linked earnings.

Corporate Tax Return Filing

All taxable entities must submit detailed tax returns annually, reporting income, expenses, and relevant financial data. The deadline is 9 months after the end of the financial year.

Examples:

  1. Tax Year: June 1, 2023 – May 31, 2024 | Filing Deadline: February 28, 2025
  2. Tax Year: Jan 1 – Dec 31, 2024 | Filing Deadline: Sep 30, 2025
  3. Tax Year: Apr 1, 2024 – Mar 31, 2025 | Filing Deadline: Dec 31, 2025

Maintain records and submit supporting documents as per UAE tax authority guidelines.

Consequences of Late Filing

Penalties include:

  • Initial surcharge as a percentage of unpaid tax
  • Monthly fines
  • Accrued interest on outstanding amou

Allowable & Non-Allowable Expenses

Generally, expenses made exclusively for business purposes are deductible. However, the following are not deductible:

  • 50% of entertainment costs
  • Administrative fines
  • VAT recovery on exempt items
  • Charitable donations to unapproved entities
  • Unrealized gains or losses
  • Interest expenses exceeding 30% of EBITDA

Some payments made to Free Zone entities may also be excluded from deductions.