Corporate Tax in the UAE | Omnex

With the introduction of Corporate Tax in the UAE effective from June 1, 2023, businesses are now required to comply with new tax regulations—9% tax on profits exceeding AED 375,000, and 0% for qualifying Free Zone entities. At Omnex, we deliver comprehensive corporate tax services backed by experienced professionals and certified tax agents to help you stay compliant, efficient, and ahead of the curve.

Understanding Corporate Tax in the UAE

Corporate Tax is a direct tax imposed on the net income or profits of corporations and other business entities. From June 1, 2023, businesses in the UAE earning over AED 375,000 annually are subject to a 9% tax rate. This step aligns with global standards, aims to strengthen the UAE’s economy, and prevents harmful tax practices while ensuring transparency and compliance.

UAE Corporate Tax Rates

• 0% – Applicable on taxable income up to AED 375,000
• 9% – Applicable on taxable income above AED 375,000

• 15% – For multinational corporations under the OECD BEPS 2.0 framework (global revenue over AED 3.15 billion)

When Does UAE Corporate Tax Apply?

• Fiscal Year Starting 1 June 2023 – CT effective from June 1, 2023

• Calendar Year Starting 1 January 2024 – CT effective from January 1, 2024

Free Zone Business & Corporate Tax

Free Zone entities can enjoy a 0% corporate tax rate on “qualifying income.” However, businesses that don’t comply with the Free Zone regulations may be subject to the 9% corporate tax rate.

How Corporate Tax Is Calculated

Example:
Profit = AED 400,000
Taxable amount = AED 400,000 – AED 375,000 = AED 25,000
9% of AED 25,000 = AED 2,250

Profits below AED 375,000 are not taxable.

Impact on Foreign Entities

Foreign individuals conducting regular business in the UAE may be liable for corporate tax. However, passive income such as dividends, capital gains, royalties, and interest is generally exempt from corporate tax.

Who Is Affected?

• Mainland businesses with a commercial license
• Free Zone companies (subject to qualifying conditions)
• Banks and financial institutions
• Foreign businesses with a permanent establishment in the UAE

• All taxable persons (including qualifying Free Zone entities) must register for Corporate Tax

Filing Corporate Tax Returns

Taxable persons must file returns within 9 months from the end of their financial year. Failure to do so will result in penalties as per FTA regulations.

Exemptions from UAE Corporate Tax

• Businesses engaged in natural resource extraction (regulated separately by each Emirate)
• Intra-group transactions (under qualifying conditions)
• Dividends and capital gains from qualifying shareholdings
• Income from employment, interest, and qualifying investments

• Foreign investors’ passive income streams

Corporate Tax Services by Omnex

Omnex offers end-to-end corporate tax solutions designed to help businesses of all sizes navigate this new landscape with confidence. Our services include:

• Corporate Tax Registration
• Corporate Tax Assessment
• Corporate Tax Return Filing
• Tax Planning & Compliance
• Tax Accounting
• Advisory & Consultancy

• Corporate Tax Training for Internal Teams

Our experienced consultants ensure that your organization remains compliant while optimizing your tax structure and minimizing liabilities.

Why Choose Omnex?

• Certified tax experts with UAE & GCC expertise
• Tailored solutions based on your business model
• Timely filing and ongoing support
• Assistance with tax audits and risk assessments
• Seamless integration with your finance operations

• Full confidentiality and compliance assurance

Need guidance on UAE Corporate Tax?
Reach out to Omnex and let our professionals help you manage your corporate tax obligations with clarity, confidence, and strategic insight.