I just started a business in Dubai. Which UAE taxes apply to me?
TI AssistantClear answerTI Public
You must register for UAE Corporate Tax. You pay 9% on taxable income above AED 375,000 a year (0% up to that). If you run the business as an individual, you only have to register once your turnover passes AED 1 million a year.
Show the full answerShow less
The detail
A new business in Dubai is subject to Corporate Tax from tax periods commencing on or after 1 June 2023. Your Tax Period is your financial year, and the Corporate Tax is payable within 9 months of its end. The rate is 0% on taxable income up to AED 375,000 and 9% above that. If you operate as a natural person (an individual), you are only required to register once your turnover exceeds AED 1 million in a Gregorian calendar year, and the 0%/9% rates then apply from 2024.1234
What the law says
- Article 69 of the CT law provides that Corporate Tax applies to Tax Periods commencing on or after 1 June 2023.3
- Article 57 defines the Tax Period as the financial year, being the Gregorian calendar year or the 12-month period for which you prepare financial statements.1
- Article 48 requires the Corporate Tax Payable to be settled within 9 months of the end of the relevant Tax Period.2
What it depends on
- If you conduct the business as a natural person, you need not register for Corporate Tax until your total turnover exceeds AED 1 million within a Gregorian calendar year (guidance, source 4).4 Based on FTA guidance
- The standard CT rates (0% up to AED 375,000; 9% above) apply to all taxable persons, with the natural-person rates effective from Gregorian calendar year 2024 once the turnover threshold is met (guidance, source 4).4 Based on FTA guidance
Check before you rely on it
- Confirm whether you run the business as an individual (natural person) or through a company, as this decides your registration threshold.
- Track your annual turnover: if you are an individual, only register when it exceeds AED 1 million.
Note: This answer covers Corporate Tax only; your VAT and Excise Tax registration obligations are outside the supplied sources.
Sources (4) — read the official text
-
Article 57 – Tax Period
Read the article
Article 57 – Tax Period 1. A Taxable Person’s Tax Period is the Financial Year or part thereof for which a Tax Return is required to be filed. 2. For the purposes of this Decree-Law, the Financial Year of a Taxable Person shall be the Gregorian calendar year, or the (12) twelve-month period for which the Taxable Person prepares financial statements.
-
Article 48 – Corporate Tax Payment
Read the article
Article 48 – Corporate Tax Payment A Taxable Person must settle the Corporate Tax Payable under this Decree-Law within (9) nine months from the end of the relevant Tax Period, or by such other date as determined by the Authority.
-
Article 69 – Application of this Decree-Law to Tax Periods
Read the article
Article 69 – Application of this Decree-Law to Tax Periods This Decree-Law shall apply to Tax Periods commencing on or after 1 June 2023.
-
Read the article
For more information on the timeline to register for Corporate Tax for other types of Taxable Persons, please refer to the relevant FTA Decision and Public Clarification published on the FTA’s website3. 3 Are there any exceptions to the requirement to register for Corporate Tax for small businesses? A natural person who conducts a Business or Business Activity in the UAE is only required to register for Corporate Tax if the total Turnover from such Business or Business Activities exceeds AED 1 million within a Gregorian calendar year. For more information on the taxation of natural persons under Corporate Tax Law, please refer to the guidance published on the FTA’s website4. *Note: The AED 1 million registration threshold for natural persons is separate from the AED 3 million Revenue threshold for Small Business Relief (see section 6) 4 What is the Corporate Tax rate applicable to a small business? There is no special Corporate Tax rate applicable for a small business. The Taxable Income will be subject to standard Corporate Tax at the following rates: - 0% on the portion of the Taxable Income not exceeding AED 375,000; and - 9% on the portion of the Taxable Income that exceeds AED 375,000. The Corporate Tax rates above also apply when the total Turnover derived by a natural person from its Business or Business Activities in the UAE in a Gregorian calendar year exceeds AED 1 million, starting from Gregorian calendar year 2024. 3 FTA Decision No.3 of 2024 - The Timeline specified for Registration of Taxable Persons for Corporate Tax for the purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments. https://tax.gov.ae/en/legislation.aspx CTP003 Corporate Tax Public Clarification- First Tax Period of a juridical person. https://tax.gov.ae/en/taxes/corporate.tax/corporate.tax.guides.references.aspx 4 Corporate Tax Guide - Taxation of Natural Persons under the Corporate Tax Law. https://tax.gov.ae/en/taxes/corporate.tax/corporate.tax.guides.references.aspx
Helpful?
Written by AI from the FTA sources above and checked before display. Not tax advice or official FTA information - confirm with a tax adviser before you act. Full disclaimer
Ask your own question
Related questions
- Do I need both VAT and Corporate Tax registration?
- What is the difference between VAT and Corporate Tax?
- What records does a small business need to keep for UAE tax?
- What documents are needed to register for Corporate Tax?
- What documents are needed to register for VAT?
- How do I pay tax to the FTA?
- Can I pay tax in instalments?
- What happens if I miss a tax deadline?
Filing Corporate Tax? Free Corporate Tax return guidance, in 5 easy steps