Why Businesses in Dubai Choose Affinitas for Corporate Tax Compliance
Does Your Business Need to Register?
The Answer Is Almost Certainly Yes.
Every taxable person in the UAE must register for Corporate Tax — regardless of revenue, profit, or Free Zone status. Here is who is required to register.
Mainland Companies
All UAE-incorporated LLCs, PSJCs, and private joint-stock companies conducting business activities in the UAE must register, regardless of profit level.
Free Zone Entities
All Free Zone companies must register for Corporate Tax — even those that qualify for the 0% rate. Registration is mandatory. The 0% rate is a tax position, not an exemption from registration.
Natural Persons
Individuals conducting business under a commercial licence in the UAE must register if their total business revenue exceeds AED 1 million in a calendar year.
Foreign-Managed Entities
Non-UAE companies that are effectively managed and controlled from within the UAE are treated as UAE tax residents and must register accordingly.
Non-Resident Businesses
Foreign businesses with a permanent establishment in the UAE, or those deriving taxable income from UAE sources, are required to register for Corporate Tax.
Small businesses, even those operating at a loss, are required for Corporate tax registration. Many entrepreneurs assume that falling below the AED 375,000 profit threshold exempts them from registration, but this is a misconception.
What is Corporate Tax in the UAE?
Corporate Tax is a new levy imposed on the taxable income of businesses operating in the UAE. It was introduced with the aim of diversifying the economy and generating additional revenue. The tax rate is currently set at 9% for taxable profits exceeding AED 375,000.
📌 Fact: The UAE offers one of the most competitive corporate tax rates globally, making it an attractive destination for businesses.
“The UAE’s Corporate Tax system strikes a balance between ensuring economic diversification and maintaining its pro-business reputation.” – UAE Ministry of Finance
Learn more about UAE Corporate Tax: Corporate Tax Overview
FAQ about Corporate Tax in UAE
Generally, all businesses operating in the UAE with a taxable income exceeding AED 375,000.
The tax return is typically due 12 months after the end of the tax period.
Non-compliance can result in significant penalties, including fines and potential legal action.
While it’s possible to register independently, engaging a professional can save time and ensure accuracy.
Yes—through legal and strategic structuring, such as moving to qualifying Free Zones. Contact Affinitas for a personalized assessment.