The UAE corporate tax, also known as the business profits tax, is a direct levy on the profit or net income generated by companies and entities from their business activities. It applies to all businesses in the UAE holding a trade license and operating within the Emirates, with specific exemptions. Taxable income is defined as the net profit or income reported in financial statements, adjusted according to CT laws and regulations. The standard corporate tax rate is 9%, applicable to taxable income exceeding AED 375,000, with rates scaling accordingly.
Contrary to common belief, all taxable persons must register under UAE Corporate Tax law, regardless of profit levels. Innovate Accounting and Auditing ensures a seamless registration process to maintain compliance for companies of all sizes, from startups to established enterprises. Additionally, certain exempt entities may receive registration requests from the Federal Tax Authority, and Innovate Associates provides expert assistance to facilitate a smooth registration process. For companies with branches in the UAE, branches of domestic companies are treated as extensions rather than separate entities, eliminating the need for separate registration or filing and simplifying compliance procedures through Innovate Associates.
