Introduction to Corporate Tax in the UAE
On 1 June 2023, the UAE Ministry of Finance rolled out a federal Corporate Tax (CT) regime, marking a significant milestone in the country’s economic diversification and alignment with international tax standards. Previously tax-free, businesses in Dubai and across the UAE must now navigate this new landscape—calculating taxable income, meeting filing deadlines, and implementing strategies to optimize their tax position.
What Is Corporate Tax?
Corporate Tax is a direct tax levied on a company’s “taxable income”, derived by adjusting accounting profits for allowable expenses, exemptions, and credits. Its purpose is two-fold: to generate government revenue for public services and to maintain a transparent, competitive business environment.
Why You Need Expert Corporate Tax Advisory
- Complexity of New Regulations
- Transitional rules for businesses in free zones
- Thresholds and rate structures to protect SMEs
- Transfer-pricing documentation and intercompany transactions
- Risk of Non-Compliance
- Penalties for late or inaccurate filings
- Potential audit exposure without robust record-keeping
- Opportunities for Savings
- Relief for small businesses (0 % up to AED 375,000 of taxable income)
- 0 % rate for qualifying free-zone entities
- Strategic timing of expenses and capital allowances
Why Choose Smart Business Creation?
- Deep Regulatory Expertise
Our dedicated CT team stays on top of every legislative update, ensuring your business remains fully compliant. - Tailored Tax-Saving Strategies
We analyze your financials and craft bespoke solutions—whether it’s optimizing your free-zone status, leveraging SMEs’ relief thresholds, or structuring intercompany arrangements. - End-to-End Support
From initial registration and system setup to annual filings and audit defense, we handle every step of the Corporate Tax journey. - Training & Capacity-Building
Equip your in-house finance team with the knowledge and tools to manage CT obligations confidently through our bespoke training sessions.
Our Corporate Tax Services
- Comprehensive Tax Reviews
Detailed assessment of your current tax position, financial structure, and transaction flows. - Strategic Tax Planning
Long-term roadmap to minimize liabilities while remaining within the legal framework. - Return Preparation & Filing
Accurate preparation and timely submission of CT returns, with full support on documentation and reconciliations. - Ongoing Compliance Monitoring
Real-time alerts and guidance on regulatory changes, deadline reminders, and best-practice checklists. - Transfer-Pricing & Intercompany Advisory
Structuring and documentation to meet arm’s-length requirements and avoid cross-border disputes.
How to Get Started
- Schedule a Consultation
We’ll review your business structure, past filings (if any), and growth plans. - Define Your CT Roadmap
Agree on milestones: registration, system implementation, first filing, and ongoing monitoring. - Implement & Optimize
Deploy tailored processes, train your team, and begin capturing tax efficiencies. - Stay Ahead
Benefit from regular updates, refresher workshops, and proactive advisory as regulations evolve.
Ready to Navigate the New Corporate Tax Landscape?
Partner with Smart Business Creation—the leading corporate tax consultants in Dubai. Let us handle the complexities so you can focus on what matters most: growing your business.
