Best Corporate Tax Assistance in UAE: Your Complete Guide to Navigating the New Regime

The introduction of the UAE corporate tax regime in 2023 marked a significant shift in the country's tax landscape, reshaping corporate tax services in UAE and corporate tax services in Dubai. Until recently, the UAE had been known for its tax-free environment, with only specific sectors such as oil and foreign banks being taxed. The implementation of corporate tax in UAE represents the UAE’s efforts to diversify its economy, promote fairness in taxation, and align with global standards like those set by the OECD. As businesses in the UAE adapt to this new UAE corporate tax law, understanding UAE tax laws and regulations is crucial for compliance with UAE tax regulations and compliance with UAE tax laws.

Under Federal Decree-Law No. 47 of 2022, the UAE now imposes a corporation tax on the corporate income or profits of businesses, effective from financial years beginning on or after 1 June 2023 (or 1 January 2024 for calendar-year entities). The Federal Tax Authority (FTA) is responsible for the administration, registration, and compliance with UAE tax of the UAE CT regime. This corporate tax regulations system is designed to promote transparency and accountability while ensuring that operating in the UAE entities contribute to the economic development of the UAE.

Who Is Subject to Corporate Tax Under UAE CT?

The new UAE corporate tax in the UAE system applies to a broad spectrum of businesses operating in the UAE. The following categories outline the Taxable Persons who are subject to corporate tax:

• Resident Persons: This category includes businesses incorporated or managed in the UAE, regardless of the source of their income, making them fully subject to corporate tax.
• Non-Resident Persons: Businesses that have a Permanent Establishment (PE) in the UAE or earn income derived from UAE-based activities are also subject to corporate tax under the regime.
• Juridical Persons: Companies incorporated, managed, or controlled in the UAE are considered tax residents and must comply with the corporate tax.
• Natural Persons: UAE nationals and individuals conducting business within the UAE are also regarded as tax residents, aligning with tax rules and regulations.

Additionally, some entities are classified as exempted from corporate tax, which means they are not subject to corporate tax if they meet specific conditions. These include government entities, certain extractive industries, and investment funds, among others, offering key tax benefits and tax incentives.

What is Corporate Tax Audit

A Corporate Tax Audit in the UAE is a systematic examination conducted by the Federal Tax Authority (FTA) to verify a business's compliance with the UAE Corporate Tax (CT) regime. It involves reviewing financial statements, tax returns, supporting documents, and accounting records to ensure accurate calculation and reporting of taxable income, proper application of deductions, exemptions, and incentives, and timely payment of taxes. This process promotes transparency, prevents tax evasion, and upholds the integrity of the UAE's tax system, aligning with global standards while supporting economic diversification.

The primary purpose of a Corporate Tax Audit is to assess whether businesses are adhering to Federal Decree-Law No. 47 of 2022 and related regulations, identifying any discrepancies, errors, or underreporting that could lead to penalties. Unlike routine financial audits, CT audits focus specifically on tax-related elements, such as transfer pricing, loss carry-forwards, and qualifying income for free zones. For instance, audits help validate the use of incentives like the 100% R&D deductions or indefinite loss carry-forward up to 75% of taxable income, ensuring these are applied correctly to fluctuating profits. This ties directly into the UAE's broader tax incentives, where no withholding taxes on dividends, interest, or royalties further enhance compliance by simplifying international transactions.

Who is Subject to Corporate Tax Audits?

Not all businesses undergo full CT audits, but many must prepare and maintain audited financial statements as a foundational requirement, which feeds into potential FTA reviews. Key categories include:

• Taxable Persons with High Revenue: Any juridical or natural person (resident or non-resident with a Permanent Establishment) earning revenue exceeding AED 50 million in a tax period must prepare audited financial statements under International Financial Reporting Standards (IFRS).
• Qualifying Free Zone Persons (QFZPs): These entities must maintain audited financial statements regardless of revenue threshold to qualify for the 0% tax rate on eligible income, ensuring transparency in transactions with other free zones or exports. This requirement, emphasized in 2025 updates, directly supports compliance for free zone operations.
• Tax Groups and Multinationals: Aggregated financial statements must be audited under a special purpose framework, especially for those subject to the Domestic Minimum Top-up Tax (DMTT) if global revenue exceeds EUR 750 million.
• Exemptions and Reliefs: Government entities, certain extractive industries, and investment funds are generally exempt from CT audits. Small businesses qualifying for Small Business Relief (SBR)—with revenue ≤ AED 3 million and not part of larger groups—benefit from simplified filing and may avoid full audits, treating their taxable income as nil to ease compliance burdens.

Audits can be triggered randomly, based on risk assessments (e.g., discrepancies in returns), or post-filing clarifications, particularly for the 2025 tax period where deadlines require audits and disclosures by 30 September 2025.

The Corporate Tax Audit Process

The FTA-led audit process is structured and collaborative, typically spanning 3–6 months, to minimize disruption. Here's a step-by-step overview:

1. Selection and Notification: Businesses are selected via risk-based analysis, random sampling, or red flags like inconsistent filings. The FTA issues a formal notice outlining the audit scope, timeframe, and required documents (e.g., financial statements, invoices, and transfer pricing records).
2. Initial Meeting and Preparation: An opening conference discusses logistics, document requests, and timelines. Businesses should review tax returns, implement internal controls, and gather evidence for incentives like loss carry-forwards or R&D claims to demonstrate compliance.
3. Fieldwork and Review: Auditors examine records on-site or remotely, verifying taxable income, deductions, and adherence to rules like the arm's length principle for related-party transactions. For QFZPs, this includes scrutinizing qualifying vs. non-qualifying income.
4. Findings and Draft Report: Preliminary observations are shared, allowing the business to respond with clarifications or additional evidence. Adjustments for underreported taxes or disallowed incentives may be proposed.
5. Final Report and Resolution: The FTA issues the audit report, which may include tax adjustments, penalties (up to 200% of unpaid tax for evasion), or refunds. Businesses can appeal within 30 days if they disagree, with the FTA responding within 20 days.
6. Post-Audit Actions: Successful audits reinforce eligibility for reliefs like SBR, while unresolved issues could impact future incentives.

UAE Corporate Tax Rate and Thresholds

The UAE corporate tax rate structure is progressive, offering relief for small businesses while ensuring larger businesses contribute fairly to the economy through different tax approaches.

• Up to AED 375,000: Taxable income up to AED 375,000 is subject to a 0% corporate tax rate, making this threshold especially beneficial for startups and small businesses seeking to reduce your tax burden.
• Above AED 375,000: Income exceeding AED 375,000 is taxed at a 9% corporate tax rate. This ensures higher-income businesses contribute a fair share without being overburdened.
• Foreign Bank Branches: These entities are taxed at a higher rate of 20% on their UAE-sourced taxable income.
• Qualifying Free Zone Persons (QFZPs): Entities operating in the UAE free zones that meet certain criteria are eligible for a 0% corporate tax rate on qualifying income, such as transactions with other free zone entities or specific exports, providing tax incentives for international tax activities.

Corporate Tax Assistance in the UAE: Expert Guidance

Navigating corporate tax in the UAE compliance can be complex, but businesses can rely on various sources of corporate tax assistance in the UAE. This assistance comes in the form of both official services provided by the Federal Tax Authority (FTA) and specialized tax consultancy from private sector firms, including corporate tax consultants in UAE and tax consultants in UAE.

Official Assistance from the Federal Tax Authority (FTA)

The FTA provides a wealth of resources to help businesses comply with the corporate tax and handle tax filing in the UAE:

• Guides and Clarifications: The FTA offers a series of comprehensive guides on topics such as taxable income, transfer pricing, and the Small Business Relief, covering UAE corporate tax law and corporate tax regulations.
• EmaraTax Portal: The online platform for corporate tax registration, e-filing services in the UAE, payments, and refunds simplifies the process of managing corporate tax filing and file corporate tax returns.
• Helpline and Support: Businesses can contact the FTA through a toll-free number or email, ensuring direct tax advice for any queries related to tax procedures.
• Workshops and Webinars: Regular sessions on tax law updates and compliance procedures help businesses stay informed about the latest changes in UAE tax and corporate tax law.

Young & Right Corporate Tax Services: Your Go-to Corporate Tax Consultants in UAE

While the FTA provides general guidance, many businesses benefit from professional corporate tax assistance from specialized consultancy firms offering services in Dubai and services in the UAE. These firms, including corporate tax consultant in Dubai and tax advisors in Dubai, provide a range of tax services in the UAE and tax advisory services, such as:

• Tax Impact Assessments: Evaluating how the new UAE tax regime will affect businesses and recommending strategic tax planning for optimization, helping to reduce your tax liabilities.
• Registration and Filing: Ensuring timely and accurate corporate tax return and corporate tax filing services, including UAE corporate tax registration and return filing.
• Advisory Services: Providing expert tax advice on complex issues such as DMTT, transfer pricing, and free zone tax incentives, through corporate tax advisory services.
• Audit Defense: Representing businesses during FTA audits to ensure their interests are protected in the event of a tax audit, with strong corporate tax audit support.

If you're looking for corporate tax help, get expert corporate tax advice from corporate tax advisors of Young & Right who offer expert corporate tax services and conduct corporate tax assessments tailored to your needs.

How Young & Right Can Help you with Corporate Tax Assistance in UAE

At Young & Right, we specialize in providing comprehensive tax corporate tax assistance tailored to businesses in the UAE of all sizes. Our team of corporate tax experts and team of tax professionals can guide you through every aspect of the UAE’s corporate tax regime, helping you minimize liabilities, optimize deductions, and ensure compliance with UAE tax regulations. We offers expert corporate tax services to make corporate tax compliance seamless, whether you're dealing with the implementation of corporate tax or navigating international tax complexities. We Provide :

1. Tax Registration:

We assist with the corporate tax registration process on the EmaraTax portal, ensuring that your business is compliant from day one under UAE corporate tax law.

2. Tax Filing and Advisory:

Our corporate tax consultants in UAE will handle your corporate tax return filing, providing expert tax advice on applicable exemptions, deductions, and tax reliefs, including how to file corporate tax returns efficiently.

3. Audit Defense:

We represent your business in case of tax audit or corporate tax audit, ensuring your interests are protected and ensuring compliance with UAE tax.

4. Transfer Pricing:

We assist with transfer pricing documentation, ensuring that transactions between related entities comply with the arm's length principle, in line with international tax laws.

5. Tax Strategy and Optimization:

We develop strategic tax planning strategies to minimize tax obligations, enhance overall tax efficiency, and leverage tax benefits for your business.

As corporate tax experts, we help you comply with the corporate tax requirements and submit their tax obligations accurately, reducing the complexity of corporate tax in the UAE.

Conclusion

Navigating the new UAE corporate tax regime can be a complex process, but with the right corporate tax assistance in the UAE, it’s possible to ensure compliance with UAE tax laws while optimizing your tax strategy. At Young & Right, we provide expert corporate tax services in Dubai and corporate tax services in UAE, tailored to your business’s needs—whether you are a small business taking advantage of the Small Business Relief, or a multinational requiring in-depth tax advisory services. Our trusted corporate tax team is here to guide you through every step, from corporate tax registration to return filing and beyond.