Corporate income tax in UAE: registration deadlines, rates, and everything you need to know

Mar 23, 2024

Following the announcement of a new corporate tax in the UAE Mainland from June 2023, the tax authority has released registration dates for companies based on the issuance date of their license.

It's crucial to note that failure to register the company with the tax authority results in a fine of 10,000 AED. All types of businesses must register, even those not subject to taxation in the UAE.

  1. Registration deadlines for companies with tax Authorities:

As per the decision announced by the UAE Tax Authority, resident companies incorporated or established in the United Arab Emirates before March 1 must adhere to specific deadlines this year to register for corporate tax.

If a company holds multiple licenses, such as a group with various operations, the deadline is determined based on "the previously issued license to determine the maximum timeframe" for registration. Companies established on or after March 1, including those in free zones, must register for corporate tax within three months of the date of incorporation.

  1. Corporate tax rates:

Mainland companies are subject to a 9% tax on profits exceeding 375,000 AED. Sole proprietors will be taxed at 9% on commercial income only if their annual turnover exceeds 1 million AED. This figure does not include investment income. This tax does not apply to activities carried out by companies established in free zones.

  1. How to register:

UAE businesses subject to corporate tax must register and obtain a tax registration number. Typically, the registration application must be submitted to the Tax Authority online. Parent companies of tax groups must file a tax return with the authority on behalf of the entire group.

Our team PIC Consulting can assist you with the registration process for your company and address all your inquiries regarding taxation in the UAE.

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