So, you’ve probably been hearing a lot about “corporate tax” lately. Maybe you’ve seen it in the news, or your business buddy dropped it during a chai break. Either way, if you’re running a business in the UAE (or planning to), this is something you need to know — and don’t worry, I’ll keep it simple.

First things first — what is corporate tax?

In plain English, corporate tax is a percentage of the profit your business makes. It’s something you pay to the government after deducting your expenses.

Now here’s the good news:
If your net profit is below AED 375,000, you pay zero. Nothing.
If it’s more than AED 375,000, you’ll pay 9% on the amount above that.

💡 Example:
Your business made AED 500,000 in profit?
You’ll pay 9% only on AED 125,000 — that’s AED 11,250. Not bad, right?

Wait… does everyone have to pay?

Not everyone. Some businesses are exempt — like government bodies, certain investment funds, and some businesses in the natural resource sector. But for most of us in the mainland or free zones, the answer is yes — we either pay, or at least register.

And yes, even if you’re not paying (maybe you’re under the threshold), you still have to register with the Federal Tax Authority (FTA). That part is non-negotiable.

But I’m in a free zone. I’m safe, right?

Kind of. The UAE still wants to attract businesses to free zones, so they’ve kept the 0% corporate tax for “qualifying” free zone companies.
But here’s the catch:

• If you start earning from mainland UAE

• Or don’t meet certain compliance requirements
  You could lose that 0% rate and get taxed like everyone else.

So, it’s not about where your office is—it’s about who you do business with.

When do I need to take action?

The tax officially kicked in from June 2023, so the clock is already ticking.

• If your financial year ends in December 2024, you’ll need to file your first return by September 2025.

• But don’t wait for the deadline. Register now, keep records, and make sure your books are clean.

You don’t want to be the one scrambling last minute and getting hit with penalties.

Honest truth? Most people are confused.

You’re not the only one thinking:
“Do I need to register now?”
“What if I made a small profit?”
“What’s counted as ‘taxable income’ anyway?”

That’s totally normal. I’ve spoken to so many entrepreneurs who thought this wouldn’t affect them — until it did.

Here’s my quick advice if you’re running a business in UAE:

Register with FTA — even if you’re not making big profits yet
 Don’t ignore free zone rules — they’re not as “free” as you think
 Keep your accounting clean — it’ll save you from stress later
 Ask questions — don’t assume, especially with compliance
 And if you’re not sure, get help

Not here to scare you — just to help.

Corporate tax isn’t the enemy. In fact, compared to most countries, the UAE is still super tax-friendly. But it’s better to understand it now than to deal with penalties later.

If you need someone to guide you through it all — registration, filing, what applies to your business — that’s literally what we do at TAX ACCOUNTANT

📲 Message us on WhatsApp: +971 55 124 2772
Let’s figure this out together. No stress, no hard talk — just straight answers.