• OUR SERVICES
    • BUSINESS CONSULTING
    • DIGITAL MEDIA SOLUTIONS
    • PROPERTY CONSULTING
  • POPULAR FREE ZONES
    • Sharjah Airport International
    • Ajman Free Zone (AFZ)
    • Dubai Media City (DMC)
    • Dubai Multi Commodities Centre
  • BLOG
  • ABOUT US
  • CONTACT US
eagle eye logo
  • +971-50-587-2093
  • WhatsApp
  • Refer & Earn
  • OUR SERVICES

      Business Consultancy

      Our holistic business solutions by industry experts will prove to be your catalyst for success.

      Learn More

      Property Consultancy

      We’ll help cultivate your
      business in the best corporate soil
      for your success.

      Learn More

      Digital Media Solutions

      Navigate through the digital world with our solutions to make your media presence effective and futuristic.

      Learn More

    • BUSINESS CONSULTING
    • DIGITAL MEDIA SOLUTIONS
    • PROPERTY CONSULTING
  • POPULAR FREE ZONES

      SAIF Zone

      SAIF Zone strives to be a business hub which encompasses the core values of convenience, community and connection.

      Ajman Free Zone

      Ajman Free Zone has been dedicated to creating an ecosystem which is dedicated to the improvement of industry, finance and trade.

      Jabel Ali Free Zone

      A wealth of resources awaits you at the unique and diverse ecosystem built within the Jebel Ali Free Zone

      More Free Zone Locations

      More Info
    • Sharjah Airport International
    • Ajman Free Zone (AFZ)
    • Dubai Media City (DMC)
    • Dubai Multi Commodities Centre
  • BLOG
  • ABOUT US
  • CONTACT US
Setup Your Business
eagle eye logo
  • OUR SERVICES

      Business Consultancy

      Our holistic business solutions by industry experts will prove to be your catalyst for success.

      Learn More

      Property Consultancy

      We’ll help cultivate your
      business in the best corporate soil
      for your success.

      Learn More

      Digital Media Solutions

      Navigate through the digital world with our solutions to make your media presence effective and futuristic.

      Learn More

    • BUSINESS CONSULTING
    • DIGITAL MEDIA SOLUTIONS
    • PROPERTY CONSULTING
  • POPULAR FREE ZONES

      SAIF Zone

      SAIF Zone strives to be a business hub which encompasses the core values of convenience, community and connection.

      Ajman Free Zone

      Ajman Free Zone has been dedicated to creating an ecosystem which is dedicated to the improvement of industry, finance and trade.

      Jabel Ali Free Zone

      A wealth of resources awaits you at the unique and diverse ecosystem built within the Jebel Ali Free Zone

      More Free Zone Locations

      More Info
    • Sharjah Airport International
    • Ajman Free Zone (AFZ)
    • Dubai Media City (DMC)
    • Dubai Multi Commodities Centre
  • BLOG
  • ABOUT US
  • CONTACT US
Setup Your Business

Blog

Blog  ·  News
A Simple Guide to Corporate Tax in the UAE

FAQ related to corporate tax in the UAE.

Recently corporate tax has been a hot topic for all international businesses established in the UAE. The UAE government released the first Federal Decree-Law No. 47 on the Taxation of Corporations and Businesses last year in December 2022.

The authorities state the reason for implementing the corporate tax is to establish UAE as a leading global business and investment hub. Further, it states that implementing corporate tax will accelerate the businesses in the UAE and help achieve the strategic objectives of the UAE government. In this blog, we have stated the most frequently asked question regarding corporate tax implementation by our clients.

1. What is corporate tax?

A corporate tax is a direct tax imposed on a corporation’s profits or net income from its business. In simple we could say Corporate Tax is imposed on Taxable Income (Revenue minus business expenses) earned by a Taxable Person within a Tax Period (Financial Year).

2. Are there any corporate tax exemptions?

Yes, there are a few exemptions. The FTA website indicates the below businesses are exempted from corporate tax.

  • Businesses engaged in the extraction of natural resources are exempt from CT as these
    • businesses will remain subject to the current Emirate-level corporate taxation.
    • Dividends and capital gains earned by a UAE business from its qualifying shareholdings will
    • be exempt from CT.
    • Qualifying intra-group transactions and reorganizations will not be subject to CT, provided the necessary conditions are met.

    Additionally, corporate tax will not apply to:

    • An individual earnings salary and other employment income, whether received from the public or the private sector.
    • Interest and other income earned by an individual from bank deposits or saving schemes.
    • A foreign investor’s income is earned from dividends, capital gains, interest, royalties, and other investment returns.
    • Investment in real estate by individuals in their personal capacity
    • Dividends, capital gains, and other income earned by individuals from owning shares or other securities in their personal capacity.

    3. How much should I pay for income tax on a mainland business?

    According to the Ministry of Finance, 0% will be imposed for mainland businesses making less or equal to AED 375,000 annually on the taxable income as a relief to small businesses. 9% will be imposed for mainland businesses making more than AED 375,00 annually on the taxable income.

    4. Does Free Zone-based companies subjected to paying corporate tax?

    Yes, Free Zone companies are subjected to corporate tax. The authorities have divided the free zone corporate income into two sections qualifying income and not qualifying income. The corporate tax will remain the same for free zone companies, same as the mainland companies accept the taxation will be implied only on the not qualified income. If your not qualified income alone surpasses AED 375,000 you will be imposed with 9% of corporate tax.

    The authorities will soon release what are the qualifying and not qualifying income.

    5. Can we deduct corporate expenses before paying corporate taxes?

    The answer is yes. Generally, business expenses can be deducted from the total revenue income of the company. However, note that expenses that are deductible under general accounting rules may not be fully deductible under corporate tax law in the UAE. For more information contact our professional support.

    6. What is the commencement date of imposing corporate tax?

    As per the law, corporate tax will become effective for corporate entities starting their financial year from 1 July 2023 and will be effective for other corporate entities once they start their financial year respectively. However, it is mandatory to register for corporate tax immediately.

    7. How do I register for the corporate tax?

    All private businesses are mandatory to register the corporate tax. Corporate tax will be directly administrated, collected, and controlled by the FTA (Federal Tax Authority) which means you need to register with the FTA to file the corporate tax. Keep in mind there will be more information on the FTA’s website soon regarding corporate tax, including references and guides about registering and filing returns.

    8. What should I do to comply with the corporate tax?

    There are 3 factors that your business needs to perform to ensure that you comply with the corporate tax in the UAE.

    1. Register for the corporate tax
      Despite your income or the state of your business, it is mandatory to register for corporate tax. Even if you are registered for VAT still it’s mandatory to register for the corporate tax. For new users visit the Federal tax Authority website (https://eservices.tax.gov.ae/#/Logon) and create a user. Once the user is created you can register to corporate tax. If you have an account with the federal tax Authority (ex. VAT) use the existing logins to register for the corporate tax. If you require further assistance, please contact our team and we will assist to register for the corporate tax.
    2. Maintain and manage your company account records
      Ensure to do a comprehensive audit before the new financial starts and make sure to record/maintain all your financial records after starting the financial year.
    3. Submit the corporate tax file to the Federal Tax Authority (FTA)
      Even if your business is exempted or gets any tax relief from paying corporate tax still you are requiring to submit a file for the FTA after the end of each financial year (First Taxable Period).

    9. Do I get a particular period to file the corporate tax?

    Yes. You are required to file the Corporate Tax return within 9 months from the end of the relevant financial year. For instance, if your financial year starts on the 1st of January then you are required to submit the corporate tax file (from the 1st of January 2024 – the 31st of December 2024) after the 31st of December 2024 and before the 31st of September 2025.

    Hope this FAQ might have brought certain clarifications and understanding regarding corporate tax in the UAE. For more details, please contact us at +971-6-574-8665 or email your inquiry to info@eagleeyefz.com and our team of professionals will be glad to assist you. Leave the hassle of corporate tax with us. Contact us for a free consultation.

    Blog  ·  News
    New UAE Visa Arrangement for Expatriates in 2022

    There will be some changes in the UAE’s entry permit and visa regime starting next month (September 2022) as part of the UAE reorganizing its visa and entry permits regime in the vision of attracting more expatriates to the country.

    With these new permits, expatriates will have more options for applying for visas to visit the UAE as a tourist and international business destination.

    The announcements made for the new UAE visa scheme will definitely impress you. UAE is continuously making efforts on listening to expatriates and welcome them. According to the population stats provided by Global Media, Insights shows that 88% of the total UAE population are non-locals in 2022.

    For more details about the population, and stats Click Here.

    Given below are the list of visa scheme that will come to effect in September 2022:

    Visit Visa (Single Entry) – Instead of 30 days, the new minimum duration visa allows for 60 days of stay inside the UAE. Further, you do not require a sponsor.

    Visit Visa (Multiple Entry) – The new visa scheme will allow a long five-years multi-entry visa option for expatriates. With this long-awaited entry permit, tourists will have the opportunity to further explore the UAE. This new visa will not require a sponsor. To be eligible for a visa, the applicant needs to have at least $4,000 in their bank account for the past 6 months. Only 180 consecutive days in a year can be spent in the UAE, and a single stay cannot exceed 90 consecutive days.

    Job Exploration Entry Visa – Fresh graduates from the best 500 universities in the world with a minimum educational level of a Bachelor’s degree or equivalent are granted this visa, which is categorized as a first, second, or third skill level by the Ministry of Human Resources and Emiratisation. This visa would not require a sponsor.

    Business Entry Visa – Investors and entrepreneurs are encouraged to explore business and investment opportunities in the UAE with this entry permit, which does not require a sponsor or host.

    Entry permit for Visiting Relatives/Friends – Visitors who are relatives or friends of UAE citizens and residents are eligible to apply for this entry permit. Does not require a sponsor.

    Entry Permit for Studying/Training – Students looking to participate in training or study courses and/or internship programs in the UAE are eligible to apply for this permit. Sponsors may be governments or private universities, and educational and research institutions licensed in the country.

    Entry Permit for a Temporary Work Mission – A temporary work assignment, such as probation testing or a project-based mission, is the purpose of issuing this visa permit. This will be sponsored by the employer. The employer must provide a temporary work contract or a letter explaining the visit’s purpose and proof of health and fitness.

    Blog
    Emirates ID Update Guide in the UAE

    The Digital government of the UAE has recently announced that the residents and citizens are required to notify the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) within 30 days of any changes made to their Emirates Identity Card data.

    On its website, the UAE digital government said this initiative will allow the Federal Authority for Identity and Citizenship (FAIC) to effectively update the data on ID cards and the Population Registration System. This will be applied to all Emirates ID card holders both nationals and expatriates in the UAE.

    ICP further states that the Emirates ID data must be updated when the wife’s last name changes (adopting her maiden name) after marriage.

    All citizens and residents must have valid Emirates ID cards. Fines will be imposed for delays in obtaining or renewing your Emirates ID card.

    Emirates ID

    How to Update your Emirates ID 

    According to authorities, it is possible to update the details of your valid ID card via the ICP website www.icp.gov.ae or its smart app. 

    • Access to the smart services system (digital identity or user name).

    • Search for the service – Update your Emirates ID

    • Fill in the application data, where applicable

    • Pay the service fee

    Note – The owner of the ID card must be present in the country. The application is not accepted if it is outside the country.

    Cancelling Emirates ID

    UAE residents intending to cancel their UAE residence visa for the purpose of leaving the country permanently or changing jobs are required to turn over their ID cards to the relevant General Directorate for Residency and Foreigners Affairs.

    Federal Authority for Identity and Citizenship will receive the returned ID card from General Directorate for Residency and Foreigners Affairs.

    If you require further assistance please contact our team and we would be glad to assist you.


    Request a free
    consultation session

    Our top priority is ensuring that we provide our clients with the most cost-effective solutions that suit the business sector of UAE to make their business dreams a reality
    Get In Touch
    eagle eye logo

    Eagle Eye strives to make your business dreams a reality by continuous, reliable services on all fronts when setting up your business in U.A.E.

    Explore

    Blog
    About Us
    Privacy Policy
    Careers
    Contact Us
    Earn AED3,000

    U.A.E.

    Saif Zone Authority,
    P.O Box – 124462,
    X1 – 53, Sharjah,
    United Arab Emirates.

    • Click for Directions

    Sri Lanka

    NO 124/6,
    Kariyawasam Place, Buthgamuwa Road, Rajagiriya, Sri Lanka.

    • Click for Directions
    Facebook
    Twitter
    Linkedin
    Instagram
    Copyright 2021 Eagle Eye International FZC. All Rights Reserved.