Federal Corporate Tax Services in the UAE

UAE Corporate tax rates are set at 0% for taxable income up to AED 375,000 and 9% for taxable income exceeding AED 375,000. For example, if your company’s taxable income is AED 500,000, you pay 0% tax on AED 375,000 and 9% tax on the remaining AED 125,000, resulting in a total corporate tax of AED 11,250.

Additionally, specific criteria aligned with “Pillar Two” of the OECD BEPS project have now been implemented through a Domestic Minimum Top-up Tax (DMTT) under Cabinet Decision No. 142 of 2024, applying a 15% top-up tax rate for large multinational groups with consolidated global revenue exceeding EUR 750 million (equivalent to AED 3.15 billion) in at least two of the four preceding financial years. This rate aligns with the global minimum effective tax rate under “Pillar Two,” and applies for financial years starting on or after 1 January 2025. The standard 9% CT is calculated and paid first; the DMTT then tops up the effective rate to 15% where needed, with a separate DMTT return (and GloBE Information Return) due 30 June 2027 for FY2025 calendar-year groups.

The corporate tax return is due 9 months after the end of the relevant financial year. For calendar-year businesses, the Cycle 2 (FY2025) corporate tax return and payment are due by 30 September 2026.

Corporate tax will be effective across all emirates for financial years starting on or after June 1st, 2023. Entities with financial years starting on July 1st and ending on June 30th will be subject to corporate tax from July 1st, 2023, onwards. Similarly, entities with a calendar financial year, from January 1st to December 31st, will be subject to corporate tax from January 1st, 2024, onwards.

With Cycle 2 filings due by 30 September 2026, the revised penalty regime in force since 14 April 2026, and the new DMTT/Pillar Two rules for large multinational groups, our team of CT experts is here to help you navigate these changes and ensure your business thrives in the evolving tax landscape of the UAE.