Navigating the New Corporate Tax in the UAE with iZone Business

For years, the UAE stood out as a tax-free haven for both corporate and personal income. However, to maintain its leading business environment and infrastructure, the UAE has introduced a new corporate tax policy. Here’s what you need to know:

Introduction of Corporate Tax

In 2022, the UAE announced a 9% corporate tax on annual profits over AED 375,000, effective from 2023 and 2024, depending on your financial year. Despite this change, the UAE remains one of the most attractive financial environments globally, with many small and medium-sized businesses continuing to pay no tax.

Registration Requirements

Businesses must register with the Federal Tax Authority (FTA). The deadline for registration depends on your business’s license issuance date, ranging from 31 May 2024 to 31 December 2024. New businesses must register within three months of incorporation.

Who Needs to Register?

Any entity conducting business in the UAE must register, regardless of profit. This includes foreign entities and free zone businesses, though existing tax incentives are still honored. Failure to register can result in fines up to AED 10,000.

Steps to Register

1. Create an Account: Register your email and phone number on the Emaratax portal.
2. Register Your Business: Follow the on-screen instructions to create a taxable person or persons.
3. Complete Registration: Register for corporate tax once all eligible persons are added. You will receive a corporate tax registration number within 20 business days.

Navigating these changes can be complex. iZone Business is here to help. Our team provides expert guidance on tax registration, filing, and accounting, ensuring your business stays compliant and thrives in the UAE’s dynamic environment.

Why Choose iZone Business?

Understanding new tax laws can be challenging. iZone Business offers comprehensive tax and accounting services to help your business grow sustainably. From tax registration to streamlined accounting processes, our award-winning team is equipped to support all your business needs in the UAE.

Contact iZone Business today to ensure your company’s success in Dubai’s vibrant market.