Sixth: Consultations on preparing and submitting corporate tax returns in the UAE

We provide specialized support to help you fully comply with the UAE Corporate Tax Law by accurately preparing and submitting tax returns in accordance with the regulations issued by the Federal Tax Authority.

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1- How to Calculate Corporate Tax in the UAE (Simple Steps)

I. Determine the accounting net profit based on financial statements prepared in accordance with applicable accounting standards.

II. Apply tax adjustments such as adding non-deductible expenses and subtracting exempt income.

III. Calculate the taxable income after the previous adjustments.

IV. Apply the tax rates: 0% on income up to AED 375,000, and 9% on anything above this limit.

Example: If taxable income is AED 600,000, the tax is 0% on the first AED 375,000 and 9% on the remaining AED 225,000, i.e. AED 20,250.

2- What is the tax registration number for corporate tax, and is it different from the VAT registration number?

The Tax Registration Number (TRN) is a unique number issued by the Federal Tax Authority to each taxpayer. It is used for identification when filing returns and for official communications.

The corporate tax registration number is separate from the value-added tax registration number; each tax system has a separate registration number depending on the type of tax for which the company is registered.

3- The Difference Between Value Added Tax and Corporate Tax

• Value Added Tax (VAT): A 5% tax is imposed on sales and consumer services, calculated on the value added at each stage of the supply chain.

• Corporate Tax (CT): A 9% tax is imposed on the net profits of companies with annual revenues exceeding AED 375,000.

The two are subject to different tax systems and require separate compliance and registration.

Keywords: Difference between corporate tax and VAT, corporate tax and VAT in the UAE.

4- Goods and services exempt from corporate tax

Corporate tax exemptions include:

• Natural resource extraction projects subject to a special zone tax.

• Certain government entities and approved public bodies.

• Specific types of small businesses that generate revenues below a certain threshold.

These exemptions aim to support specific sectors and encourage investment.

5- Corporate Tax Treatment in Free Zones, Designated Free Zones, and the Mainland

• Mainland: Corporate tax is applied at a 9% rate on taxable net income.

• Free Zones: Often offer tax incentives and partial or full exemptions to qualifying companies under specific conditions.

• Designated Free Zones: Areas with a special customs and tax regime that are treated differently by law, with tax exemptions and deferrals depending on the type of activity.

Understanding these differences helps optimize your company's tax planning.

6- How our consultants can help you prepare and file your corporate tax return correctly

I. Ensure the accuracy of financial statements and their consistency with previous statements submitted to the Federal Tax Authority

II. Apply the exemptions legally prescribed for the company

III. Apply the tax facilities and concessions legally granted to companies

IV. Deducting unsupported expenses that are not related to the activity

V. Calculating corporate tax after making adjustments and deducting exemptions and facilities