Corporate Tax

UAE Corporate Tax compliance.

UAE Corporate Tax applies under Federal Decree-Law No. 47 of 2022. Here is what a company has to do each year, and where Arakan helps.

1
Register
Companies register with the Federal Tax Authority and receive a Corporate Tax registration number. Missing the registration deadline carries a penalty.
UAE Corporate Tax law
2
Know your rate
- 0% on taxable income up to AED 375,000, and 9% above it.
- A Qualifying Free Zone Person pays 0% on qualifying income, if it meets the conditions in Article 18: adequate substance in the free zone, qualifying activities, transfer pricing compliance and audited accounts, among others.
Free zone rules and tax
3
Price related-party dealings at arm's length
Transactions with related parties and connected persons must follow the arm's length principle (Article 34), with transfer pricing documentation where the thresholds apply.
4
File and pay
The return is filed, and the tax paid, within nine months of the end of the tax period.
Track the deadline in Comply
5
Keep the records
Records and documents must be kept for seven years after the end of the tax period (Article 56). Failing to keep them carries a penalty of AED 10,000, and AED 20,000 for a repeat within 24 months (Cabinet Decision No. 75 of 2023).
Keep them in Vault Clients' books checked in Ledger

A general guide, not legal or tax advice. Rules and fees change; check the current position with the authority or an adviser before you act.

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