Direct Tax

We ensure precise UAE direct tax management, regulatory compliance, and insights to support informed business decisions.

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What is Direct Tax in the UAE?

Direct tax in the UAE refers to the federal tax levied on the net profits or income of businesses, including corporate tax under the UAE Corporate Tax Law. It ensures that companies comply with Federal Tax Authority (FTA) regulations while maintaining accurate records of income, expenses, and taxable profits. Businesses are assessed to confirm that revenue, deductions, and declarations are correctly calculated and reported, meeting all statutory obligations. The direct tax framework is designed to promote transparency, accountability, and regulatory compliance, helping businesses identify errors, mitigate risks, and make informed decisions that support financial stability and sustainable growth.

What is the UAE's Corporate Tax?

UAE corporate tax is a federal tax applied to the net profits of businesses operating in the country. Introduced under Federal Decree-Law No. 47 of 2022, it came into effect on June 1, 2023. Businesses with taxable profits up to AED 375,000 are exempt, supporting startups and small enterprises, while profits above this threshold are taxed at 9%. Multi-national companies with consolidated revenue exceeding €750 million (approximately AED 3.15 billion) are subject to a 15% rate under the OECD Pillar Two global minimum tax rules.

Certain free zone entities and qualifying industries may benefit from 0% tax on eligible income if they meet specific regulatory and FTA compliance requirements. The UAE corporate tax framework is designed to ensure transparency, encourage entrepreneurship, align with international tax practices, and support the country’s long-term economic growth and sustainability objectives.

What are the UAE Corporate Tax Rates and Brackets?

Up to AED 375,000	0%	Supports startups and small businesses
Above AED 375,000	9%	Standard corporate tax rate for larger businesses
Consolidated revenue > AED 3.15 billion	15%	Applicable to Multi-National Companies (MNCs) under OECD Pillar Two global minimum tax rules
Qualifying Free Zone Income	0%	Subject to meeting regulatory and FTA compliance requirements

What Penalties Exist for Non-Compliance or Late Filings?

In the UAE, failure to comply with corporate tax obligations can result in financial penalties and administrative actions imposed by the FTA. Key penalties include:

Late Enrollment: Businesses that fail to register for corporate tax within the required timeframe may face fines.
Late Filing of Tax Returns: Submitting tax returns after the due date can result in penalties based on the duration of the delay.
Incorrect or Incomplete Returns: Filing inaccurate or incomplete corporate tax returns may incur fines and require corrections.
Non-Payment of Tax: Failure to pay the assessed corporate tax on time can attract interest charges and additional penalties.
Failure to Maintain Records: Businesses are required to keep accurate financial records; non-compliance can lead to fines and enforcement actions.

These penalties are designed to ensure timely compliance, accurate reporting, and alignment with UAE corporate tax laws. Businesses are encouraged to maintain proper records and adhere to FTA deadlines to avoid such consequences.

Services Offered

UAE Direct Tax Services We Offer

We assist businesses with UAE direct tax, ensuring accurate income verification and full compliance with FTA and IFRS requirements.

Corporate Tax

Double Taxation Advisory

Foreign Tax Credit (FTC) Advisory

Permanent Establishment (PE) Advisory

Tax Residency Advisory

Transfer Pricing Advisory

Withholding Tax (WHT) Advisory

Why Choose RBTax?

UAE Direct Tax with RadiantBiz Tax

At RadiantBiz Tax, we provide expert guidance through every step of the direct tax process for businesses across all UAE jurisdictions. Our flexible approach allows us to work with clients through in-person consultations, virtual meetings, emails, and messaging, ensuring thorough verification of financial records and full compliance with FTA regulations.

Initial Consultation and Tax Review

Assessing your business structure, taxable income, and reporting requirements under the UAE Corporate Tax Law and IFRS standards.

Compliance Check

Examining financial statements, identifying discrepancies, and ensuring full adherence to FTA regulations and statutory obligations.

Build Tax Strategy

Designing a tailored corporate tax plan, including liability estimation, risk assessment, reporting timelines, and evaluation of internal financial controls.

Execute and Report

Managing the implementation of your tax plan with precision, preparing tax returns, highlighting key findings, and providing ongoing support to ensure your business remains fully compliant with UAE direct tax laws and regulatory requirements.

Your Tax Guides

Meet Our Team of Certified Tax Consultants

Our success stems from a team of certified professionals holding qualifications such as CPA, CMA, ACCA, CIA, CTA, and UAE FTA Tax Agent licenses, bringing extensive UAE experience and recognized expertise to every client engagement. Meet the Tax Guides