The UAE introduced Corporate Tax to align with global standards. Businesses must now understand how this affects their operations and profits.

What is Corporate Tax?

Corporate tax is a direct tax on the net income of companies.

Tax Rates

• 0% for income up to AED 375,000
• 9% for income above AED 375,000

Who is Subject to Corporate Tax?

• Mainland companies
• Free zone companies (with conditions)
• Foreign businesses operating in UAE

Key Compliance Requirements

• Maintain proper accounting records
• File annual corporate tax returns
• Register with the FTA

Common Mistakes to Avoid

• Ignoring deadlines
• Poor bookkeeping
• Misreporting income

Conclusion:
Corporate tax is a major shift for UAE businesses. Proper planning and expert guidance can ensure compliance and optimize your tax strategy.