A Simple, No-Jargon Guide from D99 Advisors
If you’re running a business—or even freelancing—in the UAE, you’ve probably been hearing a lot about corporate tax lately.
And you might be thinking:
“Does this apply to me? Do I need to register? What if I’m not making that much yet?”
You’re not alone. At D99 Advisors, these are the questions we get asked every day. So let’s break it down in the simplest way possible—no jargon, no legal speak, just the facts.
💼 First Things First: What Is Corporate Tax?
The UAE introduced corporate tax in 2023 as part of its move toward international tax standards.
The good news? It’s only 9%, and only on profits above AED 375,000 per year.
So if your business is still small or just getting started—you may not owe anything (yet).
But you still might need to register.
Let’s walk through who’s affected and what you need to know.
✅ You’re Subject to Corporate Tax If You Are…
1. A Mainland Company
If you’ve got a business licensed on the mainland (like an LLC or sole establishment), you’re in.
You need to register for corporate tax and file returns—whether or not you’re making over AED 375,000 just yet.
Don’t worry—if your profit is below the threshold, the rate is 0%. But the paperwork still matters.
2. A Free Zone Company (With Conditions)
There’s a lot of confusion here. Yes, free zones offer benefits—but they don’t automatically mean you’re exempt.
You’ll only qualify for 0% corporate tax if:
- You’re a Qualifying Free Zone Person (QFZP)
- You earn income only from allowed (qualifying) activities
- You meet the substance and reporting conditions
If not? You’re taxed just like everyone else.
3. A Foreign Company with a UAE Branch
Only the UAE branch’s income is taxed—not your entire global revenue.
But yes, the UAE-based profits are subject to corporate tax.
4. A Freelancer or Solo Consultant with a Trade License
Yep—if you’re working under a freelance permit or a sole proprietorship and your net profit crosses AED 375,000, you’re on the corporate tax radar.
It might sound surprising, but it’s true. And we’re helping a lot of freelancers figure this out right now.
5. A Holding Company or Investor Earning Passive Income
Dividends, capital gains, interest—it’s all in a gray zone. Some income might be exempt, but the setup matters.
If you’re earning through a company (not personally), you probably need to register—even if no tax is due.
🚫 Who’s Not Affected?
- People with just a salary (no business license)
- Personal real estate investors renting in their own name
- Individuals with income from savings or personal investments
- Certain government and public entities
If you’re not sure which category you’re in—don’t guess. Ask us.
👣 What Should You Do Next?
Even if you’re not paying corporate tax yet, registration is now mandatory for most businesses.
At D99 Advisors, we’ll help you:
- Confirm if corporate tax applies to you
- Register with the FTA (quickly and correctly)
- Understand your tax obligations—without drowning in forms
- Get ahead of compliance, so you’re not rushing last-minute
Plan for the future, especially as your profits grow
