Corporate tax is a levy imposed by governments on the profits earned by businesses or corporations. It is one of the primary sources of revenue for governments worldwide and plays a crucial role in country’s economic health. The UAE government has introduced corporate tax effective from 1 June 2023.
Corporate Tax is charged on a wide range of Business profits, and those subject to Corporate Tax in the UAE include not only companies but also certain partnerships, unincorporated entities and natural persons conducting a Business or Business Activities.
Corporate Tax is calculated and paid on an annual basis with reference to the Tax Period of a Taxable Person. A Tax Period is the Financial Year or part thereof for which a Tax Return needs to be filed. The Financial Year is the period of 12 months for which Financial Statements are prepared.
Payment of Corporate Tax is due within nine months from the end of the applicable Tax Period.2 The UAE Corporate Tax regime applies to Tax Periods commencing on or after 1 June 2023.
How does corporate tax work:
Taxable Persons are subject to Corporate Tax on their Taxable Income – this is their Accounting Income with certain adjustments made for Corporate Tax purposes. Generally, Corporate Tax is imposed on Taxable Income at the following rates:
• 0% (zero percent) on the portion of the Taxable Income not exceeding AED 375,000.
• 9% (nine percent) on the portion of the Taxable Income exceeding AED 375,000.
Deadline for returns and
| Fiscal year-end | First reporting period | Due date of filing first CT return and payment | Due date for first transfer pricing disclosure form |
| December 2023 | January 2024 to December 2024 | 30 September 2025 | 30 September 2025 |
| June 2023 | July 2023 to June 2024 | 31 March 2025 | 31 March 2025 |
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