Introduction-
With the rollout of corporate tax in the UAE, businesses are now operating in a new era of compliance and financial transparency. Starting in 2025, all eligible companies must register for corporate tax with the UAE Federal Tax Authority (FTA) to remain legally compliant.
At Kshetry & Co. Legal Advisors, we simplify the process, helping businesses across the USA, UK, and global markets understand and comply with these new regulations.
What is Corporate Tax in the UAE?
Corporate tax is a levy on net business profits. Under the UAE’s new federal tax regime:
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A 9% corporate tax rate applies to taxable income above AED 375,000.
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Income below this threshold remains exempt to support small businesses.
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Certain free zone entities and non-profit organizations may qualify for exemptions.
This framework aligns the UAE with OECD global tax standards, enhancing its position as a transparent and competitive business hub.
Who Needs to Register?
Mandatory registration applies to:
✔ Mainland companies incorporated in the UAE
✔ Free zone businesses engaged in mainland trade
✔ Foreign entities with a permanent establishment in the UAE
✔ Branches of foreign companies (unless exempt)
Failure to register or comply can lead to financial penalties and legal consequences.
Registration & Compliance Essentials
The UAE’s FTA portal is the official platform for registration. Businesses must:
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Assess liability – confirm if your entity falls under the new regime.
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Prepare documentation – including trade license, financials, and incorporation details.
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Register online – submit your application via the FTA e-portal.
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Maintain compliance – accurate bookkeeping, timely filing of annual returns, and prompt tax payments are required.
Non-compliance can result in penalties of up to AED 10,000+, depending on the violation.
How Kshetry & Co. Legal Advisors Support You
As an international law firm with offices in the UAE, USA, UK, and beyond, we provide:
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Expert tax liability assessment for businesses of all sizes
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End-to-end corporate tax registration support
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Tailored tax planning strategies for multinational entities
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Continuous updates on FTA guidelines and regulatory changes
Our goal is to ensure your business remains compliant, competitive, and risk-free.
Conclusion
The UAE’s corporate tax marks a historic shift toward global best practices. For businesses, early registration and proactive compliance are key to avoiding penalties and building investor confidence.
At Kshetry & Co. Legal Advisors, we guide businesses step-by-step through this process—so you can focus on growth while we ensure compliance.
📌 Ready for hassle-free corporate tax registration in the UAE?
👉 Contact us today for tailored legal and tax support.
