Corporate Tax in Dubai Everything You Need to Know
Corporate tax in Dubai has become one of the most important topics for UAE based companies. Since the Federal Tax Authority (FTA) implemented the Corporate Tax Law, every business operating in Dubai, whether a mainland company, a free zone entity, or an offshore business, must understand how corporate tax works, who must register, and how to file tax returns correctly.
Dubai has always been known for its economic stability and investor friendly policies. Many entrepreneurs choose Dubai for business setup by opting for company formation in Dubai or structured mainland company setup depending on their business goals. But with corporate tax now active, knowing your tax obligations is essential for smooth operations and long term compliance.
This guide covers everything you need to know, including exemptions, free zone rules, registration, filing procedures, deadlines, and penalties. You will also find useful internal links to related Nines Consultancy services such as VAT registration, audit and accounting, and PRO services to support your compliance journey.
What is Corporate Tax in Dubai
Corporate tax in Dubai is a federal tax applied to business profits across the UAE. It is administered by the Federal Tax Authority (FTA) through the EmaraTax system.
Corporate tax rates:
- 0 percent on taxable income up to AED 375,000
- 9 percent on taxable income above AED 375,000
- 0 percent for qualifying free zone entities that meet specific criteria
Corporate tax applies to:
- Mainland companies
- Free zone companies
- Foreign entities earning UAE-sourced income
- Branches of UAE or foreign companies
- Individuals engaged in licensed business activities
If you are planning to start a new company, review our company formation in Dubai guide to understand how structure affects tax treatment.
Why Corporate Tax Matters for Dubai Businesses
1. Mandatory Legal Compliance
Every business must register for corporate tax unless officially exempt. Companies familiar with VAT registration will see a similar compliance process.
2. Encourages Financial Transparency
Businesses must maintain proper books of accounts, audits, and financial reports. Our audit and accounting services help ensure your financial statements meet FTA and IFRS standards.
3. Free Zone Incentives
Free zones like IFZA, JAFZA, Dubai South, and Meydan still offer 0 percent corporate tax, but only for qualifying free zone activities. If your free zone company plans to expand to mainland operations, our mainland company setup page explains how this affects tax classification.
4. Avoiding Penalties
Late filing, incorrect reporting, or non compliance can lead to penalties. Proper coordination through PRO services ensures you remain compliant with government timelines.
5. Improved Access to Banking and Investment
Banks and investors prefer companies with clean financial records. If you need help opening or maintaining your account, visit our business banking services page.
Step by Step Guide to Corporate Tax Registration in Dubai
Step 1: Determine Eligibility
Corporate tax applies to:
- LLCs
- Free zone companies
- Sole proprietorships
- Civil companies
- Branches of local and foreign entities
If you are in the process of establishing a business, your structure selection under mainland company setup determines how your tax obligations will be calculated.
Step 2: Register on EmaraTax
Businesses register for corporate tax via EmaraTax by submitting:
- Trade license
- Passport and Emirates ID copies
- MOA or AOA
- Contact and business details
Your documents can be handled by our PRO services for smooth registration.
Step 3: Receive Your Corporate Tax TRN
After approval, you receive a Corporate Tax Registration Number (TRN), which is required for filing, audits, and compliance.
Step 4: Maintain Accounting Records
Companies must maintain proper financial records, including:
- Profit and loss statements
- Balance sheets
- Bank statements
- Payroll
- VAT filings
- Audited statements
You can outsource your accounting and audit needs through our audit and accounting services.
Step 5: Calculate Taxable Income
Taxable income is calculated based on IFRS compliant statements.
Corporate tax rates:
- 0 percent up to AED 375,000
- 9 percent above AED 375,000
- 0 percent for qualifying free zone companies
Step 6: File Corporate Tax Returns
Tax filing is completed annually via EmaraTax. If you need assistance, our expert team provides full tax filing and compliance support through our audit and accounting services.
Corporate Tax Rules for Free Zone Companies
Free zone entities may maintain their 0 percent tax status if they follow FTA criteria.
Qualifying Free Zone Activities
- Manufacturing
- HQ services
- Holding of shares
- Fund management
- Trading within the free zone
- ICT services
Disallowed Activities
If a free zone company conducts non-qualifying activities or mainland business without restrictions, it loses its 0 percent tax benefit.
Corporate Tax Filing Timeline
- One filing per financial year
- Submit within 9 months after financial year-end
- Audited financials may be required depending on free zone regulations
Required Documents
You must provide:
- Trade license
- Passport and Emirates ID of owners
- MOA
- Office lease agreement or Ejari
- Financial records
- Branch information
If you need help securing an office for compliance purposes, explore our rental office services.
Corporate Tax Registration Cost
Fees depend on:
- Business size
- Accounting complexity
- Filing needs
- Free zone vs mainland
- Advisory requirements
Nines Consultancy provides tailored, transparent pricing.
Why Choose Nines Consultancy for Corporate Tax
We support businesses across Dubai with complete corporate tax compliance.
Our Services
- Corporate tax registration
- Corporate tax filing
- VAT registration and filing
- Accounting and auditing
- Free zone qualifying status support
- PRO and government liaison services
Why Clients Trust Us
- UAE-based consultants
- Transparent pricing
- Fast processing
- Compliance focused approach
- Trusted by SMEs and large corporations
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Call: +971 52 975 7543
FAQ Section
Do all Dubai companies need to register for corporate tax
Yes, all must register unless exempt.
Is corporate tax similar to VAT
No. VAT is on goods and services. Corporate tax is on profit. If you need VAT help, visit our VAT registration page.
Can I file corporate tax by myself
Yes, using EmaraTax. But most companies prefer professional filing through our audit and accounting services.
Do free zone companies always get 0 percent
No, only qualifying free zone entities.
What if I file late
Late filing leads to penalties from the FTA.
Corporate tax in Dubai is now a core compliance requirement for businesses across the UAE. Whether you operate on the mainland or in a free zone, timely corporate tax registration and accurate filing are essential.
If you want stress free, professional support, Nines Consultancy is here to guide you.
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