UAE Corporate Tax 2024: What Every CA Firm Needs to Know
The UAE introduced a federal corporate tax regime effective for financial years starting on or after 1 June 2023. At a headline rate of 9% on taxable income above AED 375,000, this is the most significant tax change in the UAE's history — and it has major implications for CA firms advising UAE-based clients.
Who is Taxable?
All juridical persons incorporated in the UAE mainland and foreign entities with a permanent establishment in the UAE are subject to corporate tax. Free zone entities may qualify for a 0% Qualifying Free Zone Person (QFZP) rate on qualifying income — but only if they meet strict substance and non-qualifying income thresholds.
Key Exemptions
Individuals earning employment income, dividend income from qualifying participations (95%+ owned for 12+ months), and income from intra-group transactions meeting arm's length tests may be exempt. Natural resource extraction activities remain subject to emirate-level taxation.
Transfer Pricing Obligations
Businesses with related-party transactions must maintain transfer pricing documentation compliant with OECD guidelines. The Master File and Local File must be prepared if turnover exceeds AED 200 million or if the entity is part of a multinational group.
What CA Firms Should Do Now
Review all client structures for QFZP eligibility. Identify clients whose financial years have already commenced under the new regime. Establish a corporate tax compliance calendar and ensure Emirate-specific nuances (e.g., Dubai vs. Abu Dhabi free zone rules) are factored into advice.
At Adeptix Global, we support UAE CA firms with dedicated corporate tax research, return preparation, and client advisory — so your team can scale without adding headcount. Talk to our experts today.
