Corporate Tax Assessment

⚠️ Critical Compliance Requirements

  • CT Registration Mandatory: Revenue/assets > AED 375,000
  • Substance Requirements: Essential for qualifying exemptions
  • Transfer Pricing: Related party transactions must be at arm’s length
  • Economic Substance: Required for all relevant activities

🏛️ UAE Corporate Tax Framework (Federal Law No. 47/2022)

Standard Rate:
9% on taxable income > AED 375,000
Qualifying Small Business:
0% on income ≤ AED 375,000
Large Business Threshold:
Revenue > AED 1,000,000,000
Registration Threshold:
Mandatory if revenue/assets > AED 375,000
Free Zone Qualifying Person Assessment
All income from qualifying activities within Free Zone
Must be 100% qualifying activities – no mainland business activities
⚠️ Any mainland income disqualifies entire entity
Adequate economic substance in UAE
Core income-generating activities conducted in UAE with adequate substance
⚠️ Subject to Economic Substance Regulations
No election to be subject to Corporate Tax
Entity has not made election to be subject to CT
Specific Income Types
Natural Resources/Extractive Activities
Oil, gas, or other natural resource extraction activities
⚠️ May be subject to special provisions
Transfer Pricing & Related Party Transactions
Transfer Pricing Documentation Available
Contemporaneous documentation supporting arm’s length pricing
⚠️ Required for transactions > AED 1M annually
Economic Substance Requirements (ESR)
Conducting ESR Relevant Activity
Banking, insurance, fund management, lease financing, shipping, holding company, IP, distribution & service center, headquarters business
Government & Exempt Entities
UAE Government Entity
Federal government, Emirate government, or government-controlled entity
Non-commercial Government Activities Only
Entity only engages in non-commercial government activities
⚠️ Commercial activities are subject to CT
Advance Compliance Assessment
Complex Corporate Structure
Multiple entities, cross-border transactions, or complex ownership
⚠️ May require Advance Tax Ruling
First Year of Business Operations
Entity commencing business activities in current tax period
Advanced Compliance & Risk Assessment
Previous Tax Audit or Investigation
Entity has been subject to previous tax audits or investigations
Voluntary Disclosure Program Eligible
Considering voluntary disclosure for past non-compliance

Tax Assessment Results

🎯 Professional CT Assessment Process

  • Entity Classification: Determines applicable CT treatment
  • Qualifying Person Analysis: Assesses exemption eligibility
  • Substance Requirements: Validates economic substance compliance
  • Income Characterization: Proper classification of income types
  • Registration Assessment: Mandatory registration threshold analysis
  • Compliance Risk Review: Identifies potential audit risks
🔒 Professional Tax Compliance Disclaimer:

This calculator provides preliminary assessments based on UAE Federal Law No. 47 of 2022 and implementing regulations. Corporate tax compliance requires detailed analysis of specific circumstances, substance requirements, transfer pricing, and other complex provisions.

Mandatory Professional Consultation Required For: Final tax positions, CT registration, economic substance compliance, transfer pricing documentation, and audit defense. This tool does not constitute professional tax advice.

Accuracy Note: Tax law interpretations continue to evolve. Consult qualified UAE tax advisors and the Federal Tax Authority for current guidance.