UAE Corporate Tax

Corporate Tax

UAE Corporate Tax, mapped to how your business is actually structured

Federal Decree-Law No. 47 of 2022 introduced a Corporate Tax regime that applies differently depending on where and how your business operates — and both can apply inside the same group at once. Standard Mainland taxable persons pay 9% above a fixed exemption threshold; Free Zone entities that meet a separate set of conditions can keep a 0% rate on qualifying income. Getting the classification wrong, or letting it drift after registration, is what creates most of the exposure.

RSM Dahman's Corporate Tax team helps you work out which frame applies to your entity (or entities), builds the compliance and planning services to match, and gives you a self-assessment checklist to track your own readiness ahead of your next filing.

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UAE

Note: the 9% rate applies to taxable income above the AED 375,000 exemption threshold under Federal Decree-Law No. 47 of 2022 — a regulatory figure, not an RSM fee or estimate.

Regulatory Frames

Two Corporate Tax Frames Under UAE Law

UAE Corporate Tax isn't one flat rate for every business — it's two distinct frames, and a group can have entities sitting in both at once. Frame 1 is the standard regime that applies to Mainland and other non-Free-Zone taxable persons. Frame 2 is the preferential regime available to Free Zone entities that meet, and continue to meet, a specific set of conditions. Knowing which frame each of your entities sits in is the first step; the services below are built around exactly what each one requires.

Frame 1Standard & Mainland Taxable Persons

Law: Federal Decree-Law No. 47 of 2022 (Corporate Tax Law), effective for financial years starting on or after 1 June 2023
Applies to: UAE Mainland companies, foreign entities with a UAE permanent establishment, and natural persons with UAE business turnover above AED 1,000,000
Requires: FTA registration, 9% tax on taxable income above AED 375,000 (0% below), annual return and payment, loss carry-forward capped at 75% offset per year; Small Business Relief available up to AED 3,000,000 revenue through periods ending by 31 Dec 2029
Key dates: Registration by trade-licence month (2024 cohort) or within 3 months of incorporation (from 1 Mar 2024) · return & payment due within 9 months of tax period end
Penalty: AED 10,000 late registration (waivable under FTA Public Clarification CTP006 if the first return is filed within 7 months) · AED 500/month late filing (first 12 months, then AED 1,000/month) · 14% p.a. late payment

Our services for this frame

■ Corporate tax registration and EmaraTax setup

■ Standard-rate return preparation and filing within the 9-month deadline

■ Small Business Relief eligibility assessment against the AED 3,000,000 threshold

■ Tax grouping structuring for group relief

■ Loss carry-forward planning within the 75% annual offset cap

■ Late registration/filing penalty exposure review, including CTP006 waiver eligibility

Frame 2Qualifying Free Zone Persons

Law: Federal Decree-Law No. 47 of 2022, plus Cabinet/Ministerial Decisions on Qualifying Income for Free Zone Persons
Applies to: Free Zone entities with adequate substance and qualifying income that have not elected out of the regime
Requires: Genuine core income-generating activity, staff, expenditure and assets inside the free zone · income from approved qualifying activities · non-qualifying revenue kept within the de minimis cap (lower of 5% of total revenue or AED 5,000,000) · arm's-length transfer pricing documentation
Key dates: Same registration timeline as Frame 1 · annual return and payment due within 9 months of tax period end
Consequence: Breaching any condition forfeits the 0% rate for the entire tax period (9% applies to all income) and disqualifies the entity for the following 4 tax periods — a 5-period exclusion in total

Our services for this frame

■ Qualifying Free Zone Person eligibility assessment (substance and income testing)

■ De minimis threshold monitoring against the 5%/AED 5,000,000 cap

■ Transfer pricing documentation for related-party transactions

■ Qualifying vs. non-qualifying income mapping across activities

■ Free zone structuring and economic substance advisory

■ Remediation planning to avoid or exit the 5-period disqualification

Compliance Checklist

Build Your UAE Corporate Tax Compliance Assessment

Start with the checklist for the frame that applies to each of your entities. Anything you can't tick confidently is where an assessment should start.

Frame 1 — Standard & Mainland

Federal Decree-Law No. 47 of 2022

☐ Have you registered for corporate tax with the FTA and obtained your Tax Registration Number?

☐ Do you know your exact registration deadline based on your trade licence issuance date or incorporation date?

☐ Is your taxable income above the AED 375,000 threshold, and do you know your effective 9% liability?

☐ If your revenue is AED 3,000,000 or below, have you assessed eligibility for Small Business Relief?

☐ Do you have a process to file and pay within 9 months of your tax period end?

☐ Have you reviewed exposure to the AED 10,000 late registration penalty and the CTP006 waiver conditions?

☐ Do you understand the 75% cap on loss carry-forward against future taxable income?

Frame 2 — Qualifying Free Zone

Qualifying Free Zone Person conditions

☐ Does your free zone entity maintain adequate substance (staff, assets, expenditure) genuinely inside the free zone?

☐ Is your income properly mapped to qualifying vs. excluded or non-qualifying activities?

☐ Do you track non-qualifying revenue against the de minimis cap (lower of 5% of total revenue or AED 5,000,000)?

☐ Do you have arm's-length transfer pricing documentation for related-party transactions?

☐ Have you confirmed you have not elected out of the Qualifying Free Zone Person regime?

☐ Do you know the consequence of breaching any condition (loss of 0% for the full period, plus 4 more)?

☐ Have you reviewed your QFZP status ahead of this filing cycle, not just at initial registration?

Any item you can't answer with a confident "yes" is a gap worth closing before your next registration, filing, or free-zone status review. Treat the unchecked items as a punch list — then get in touch and we'll turn it into a scoped tax health check.

Why RSM

Why Choose RSM UAE?

RSM Dahman combines regulatory fluency with practical, on-the-ground experience helping UAE businesses meet real Corporate Tax deadlines and protect their Free Zone tax position. Expand each reason below.

Direct experience with UAE Corporate Tax registration and filing. Why it matters —

We handle registration, EmaraTax setup, and return preparation for Mainland and Free Zone entities alike, so your first filing cycle doesn't become a scramble against the 9-month deadline.

Deep familiarity with the Qualifying Free Zone Person regime. Why it matters —

The 0% rate depends on continuing to meet substance, qualifying-income, and de minimis conditions every period — we monitor these on an ongoing basis, not just at the point of registration.

Transfer pricing and related-party transaction expertise. Why it matters —

Whether you're documenting arm's-length pricing for a Qualifying Free Zone Person or structuring a tax group on the Mainland, we build the documentation the FTA expects to see.

Practical support to avoid penalties. Why it matters —

Late registration, late filing, and late payment all carry separate, escalating penalties — we help you build a filing calendar so none of them become a surprise.

Not sure where you stand? Start with the checklist —

Use our self-assessment checklist for both Corporate Tax frames to see where the gaps are, then jump to the checklist → or go straight to contact us for a full tax health check.

Get in Touch

Let's get your UAE Corporate Tax position confirmed before your next filing.

Reach our Corporate Tax team directly, or send us a message using the enquiry form below.

Phone

+971 4 554 7423

Email

inquiry@rsm.ae

Location

United Arab Emirates

UAE Corporate Tax Services