Corporate Tax (CT) Advisory

At Entrust Auditors, we help businesses navigate Corporate Tax with clarity and confidenceensuring full compliance while optimizing tax positions within the law.

The UAE Corporate Tax (CT) regime, effective for financial years starting on or after 1 June 2023, marks a major shift in the country’s tax framework. Corporate Tax applies to business profits and introduces new compliance, reporting, and documentation requirements for businesses operating in the UAE.

What is Corporate Tax?

Corporate Tax is a direct tax on business profits, introduced to align the UAE with global tax standards while maintaining a competitive business environment.

Corporate Tax Rates

  • 0% on taxable income up to AED 375,000

  • 9% on taxable income above AED 375,000

  • 0% on Qualifying Income for Qualifying Free Zone Persons (QFZP)

  • 9% on non-qualifying income for Free Zone entities

Large multinational groups may also be subject to OECD Pillar Two (15%) minimum tax rules where applicable.

Key Corporate Tax Concepts

Taxable Income

Accounting profit adjusted for tax (deductibility limits, exempt income, timing differences, depreciation).

Small Business Relief (SBR)

Election for eligible entities below revenue thresholds, simplifying compliance for specific periods.

Tax Groups & Intragroup Reliefs

Group consolidation/reliefs may apply where ownership and accounting policy conditions are met.

Transfer Pricing (TP)

Related‑party transactions must adhere to arm’s‑length pricing; TP disclosure form and Local/Master Files may be required based on thresholds.

How Entrust Supports Corporate Tax

  • Corporate Tax registration with FTA
  • Tax computation and return filing
  • IFRS-aligned accounting for CT
  • QFZP eligibility assessment and monitoring
  • Transfer Pricing documentation
  • Audit-ready reconciliations
  • FTA query and audit support

Why Corporate Tax Advisory Matters

Corporate Tax impacts:

  • Cash flow planning
  • Investment decisions
  • Business structuring
  • Investor confidence