Corporate Tax
Easily File Your Corporate Tax in The UAE with North Star Global
Understanding the laws of corporate tax in the UAE is crucial for sustainable business growth and long-term compliance with federal regulations. Corporate tax was introduced to diversify national revenue. Staying informed helps businesses avoid fines and plan their financial strategies wisely.
The Need of Corporate Tax Advisory in The UAE
A corporation’s net profits are subject to a direct tax known as corporate tax. It’s designed to support economic development and national initiatives. However, it directly affects your revenue, so knowing how it functions helps you manage cash flow and investments more effectively. Therefore, your business needs the best UAE corporate tax service provider.
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The Federal Decree-Law No. (47) of 2022 governs corporate taxation across the UAE. This corporate tax law in the UAE came into effect on June 1, 2023. This law outlines tax liabilities, exemptions, and responsibilities thus, making it essential for companies to revise current accounting practices proactively.
Who Needs to Pay Corporate Tax?
- Corporate tax applies to UAE-based businesses, foreign entities, and freelancers with an annual profit exceeding AED 375,000. So, not all entities are affected.
- Yet, qualifying Free Zone entities may benefit from exemptions if they meet specific regulatory requirements and remain compliant.
To know more in detail reach North Star Global, for professional corporate tax consultants in Dubai.
Corporate Tax Rates & How They're Calculated?
The UAE applies a 0% rate for income up to AED 375,000 and 9% beyond that threshold. Rates are competitive globally.
Taxable income is calculated by deducting business expenses and allowable costs from gross revenue. Hence, always contact our experts regarding corporate tax consultancy in Dubai to remain accurate.
Corporate Tax = Taxable Income × 9%
For example, If a company earns AED 500,000 in net profit in the UAE, it would pay 0% tax on the first AED 375,000 and 9% on the remaining AED 125,000, resulting in a corporate tax of AED 11,250.
Additionally, the UAE has introduced a Domestic Minimum Top-up Tax (DMTT), ensuring multinational enterprises with global revenues exceeding €750 million pay a minimum effective tax rate of 15% on UAE-sourced profits.
By this example, you may understand the significance of considering corporate tax filing services in the UAE.
Filing Requirements & Penalties
Businesses must register through the Federal Tax Authority (FTA) portal. Annual filing isn’t optional — it’s mandatory, with firm deadlines and serious penalties for missing them.
Failing to file or submit incorrect information can attract hefty fines. So, timely and correct filing is non-negotiable for every organization.
Preparing Your Business for Tax Compliance
Start by updating financial records, identifying tax obligations, and leveraging expert help for seamless registration and submission. With North Star Global, get cloud-based support, real-time insights, and tailored compliance strategies that simplify every step.
With us handling your corporate tax compliance in the UAE, running your business becomes much easier. Then, are you ready to file taxes with confidence?