Introduction:

The UAE has implemented corporate tax, requiring businesses to stay compliant with regulations. In this guide, we explain tax rates, exemptions, deadlines, and compliance strategies for 2025.

1. What is Corporate Tax in the UAE?

Corporate tax is a direct tax levied on businesses' net profits. The UAE introduced this tax to ensure economic stability and align with international tax practices.

2. Corporate Tax Rates in the UAE

✔ 0% Tax → For businesses with annual profits below AED 375,000
✔ 9% Tax → For businesses with annual profits above AED 375,000
✔ 15% Tax → For large multinational companies

3. Who is Required to Pay UAE Corporate Tax?

✔ All UAE-based businesses (except government entities, charities, and certain free zones)
✔ Foreign businesses with permanent establishment (PE) in UAE
✔ Freelancers and self-employed individuals earning above AED 375,000

4. How to Register for Corporate Tax in the UAE?

📌 Step 1: Register via the UAE Federal Tax Authority (FTA) Portal
📌 Step 2: Submit Trade License, Financial Reports, and Emirates ID
📌 Step 3: Receive Corporate Tax Registration Number (TRN)
📌 Step 4: File Tax Returns Annually

5. Corporate Tax Exemptions in UAE

❌ Small businesses with revenue below AED 375,000
❌ Qualifying Free Zone Businesses (Certain criteria apply)
❌ Government Entities and Non-Profit Organizations

6. Corporate Tax Filing Deadlines in 2025

✔ Annual tax return must be filed within 9 months of the financial year-end.
✔ Penalties apply for late filing and non-compliance.

7. Common Mistakes Businesses Make with Corporate Tax

🚫 Not keeping proper accounting records
🚫 Failing to register on time
🚫 Misclassifying tax-exempt income

Conclusion

To stay compliant, businesses must register for UAE corporate tax, maintain accurate records, and file returns on time. Need expert guidance? Consult with TaxGPT UAE for AI-powered tax assistance!