Corporate tax in the UAE is a levy on business profits, with a standard rate of 0% and potential exemptions in free zones. The VAT was introduced at 5% in 2018, requiring businesses with certain sales levels to register. It is crucial for companies to understand the tax regulations and maintain compliance to benefit from the favorable tax environment.

1. CORPORATE TAX IN UAE
F L Y I N G C O L O U R T A X A N D A C C O U N T I N G S E R V I C E S
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2. Introduction to Corporate Tax in
UAE
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Definition: Corporate tax is a levy placed on the
profits of businesses in the United Arab Emirates
(UAE).
Importance: Understanding the corporate tax
system is crucial for businesses operating in the
UAE.

3. Corporate Tax
Rates
• Tax Rates:
⚬ Standard corporate tax rate: 0% (varies by Emirate)
⚬ Certain free zones offer tax exemptions for a set
number of years.
⚬ No Value Added Tax (VAT) on exports.
• Factors Affecting Rates:
⚬ Type of business activity.
⚬ Location of the business (free zone or mainland).

4. Tax Exemptions and
Incentives
• Free Zones:
⚬ Companies established in free zones enjoy tax
exemptions for a specific duration.
• Incentives:
⚬ Foreign ownership allowed in certain free zones.
⚬ Full repatriation of profits and capital.

5. VAT in the
UAE
VAT Overview:
• Implemented in UAE from January 1,
2018.
• Standard VAT rate: 5%.
• Impact on Businesses:
• Businesses with taxable supplies
exceeding a certain threshold must
register for VAT.

6. First Month Second Month Third Month
Compliance and
Regulations
Compliance Requirements:
⚬ Companies need to maintain proper
records and submit regular tax returns.
• Regulatory Authorities:
⚬ Federal Tax Authority (FTA) oversees tax
matters in the UAE.

7. Conclusion
• Key Takeaways:
⚬ Corporate tax rates in the UAE are attractive for
businesses.
⚬ Understanding tax regulations is essential for
compliance.
• Contact Flyingcolour Tax and Accounting Service:
⚬ For professional assistance with corporate tax matters
in the UAE.

8. CONTACT
INFORMATION
+971 50 5585305
https://www.flyingcolourtax.com/
Office No.2608,2609 & 2610
Concord Tower Opposite Palm
Jumeirah Dubai Media City, Dubai.
UAE.

9. THANKS