Corporate Tax in Dubai
Corporate Tax Framework
The Corporate Tax framework in Dubai (and the UAE) is structured as follows:
Tax Rate
Taxable Entities
Exemptions
Certain entities and activities are exempt from corporate tax, including:
Compliance and Administration
Businesses are required to register for corporate tax and obtain a Tax Registration Number (TRN). They must maintain accurate financial records and submit annual tax returns to the Federal Tax Authority (FTA). The tax year is generally aligned with the financial year, and the deadline for filing returns is within nine months from the end of the relevant financial period.
Impact on Businesses
The introduction of corporate tax encourages greater transparency and aligns Dubai with global tax practices. While it represents an additional cost, the tax rate remains competitive internationally, ensuring that Dubai continues to attract foreign investment and support economic growth.
Conclusion
Dubai’s corporate tax regime is designed to foster a balanced and transparent economic environment. By maintaining a competitive tax rate and providing exemptions for specific sectors, Dubai aims to enhance its attractiveness as a global business destination while ensuring sustainable government revenue.
