For corporate tax purposes in the UAE, taxable persons may be either residents or non-residents. This classification is based on business activity and presence, and is independent of an individual’s UAE residency status, visa type, or physical presence in the country. It focuses solely on how and where the business operates, rather than the personal status of the business owner.
Do offshore companies need to pay corporate tax?
No. If a foreign company has no permanent establishment and no UAE-sourced income, it is not subject to UAE corporate tax under the new regulations.
Is it mandatory to maintain accounting records and submit financial statements in the UAE?
Yes. All UAE companies must maintain proper accounting records and submit financial statements prepared according to IFRS (International Financial Reporting Standards).
Accurate bookkeeping helps justify income sources and simplifies tax return filing. All transactions must be supported by invoices, contracts, bills of lading, and other relevant documentation.
The starting point for calculating corporate tax is the accounting profit or loss.
Do companies have to file tax returns?
Yes. As of June 1, 2023, all UAE-registered companies must:
Register with the Federal Tax Authority (FTA)
File annual tax returns through the EmaraTax portal, regardless of whether they owe corporate tax
Pay taxes within 9 months after the end of the relevant tax period
If a company pays VAT, does it also need to pay corporate tax?
Yes. VAT and corporate tax are separate. A company registered for VAT must also register separately for corporate tax, as each tax regime has its own rules and filing requirements.
Can companies offset past losses against future profits?
Yes. Companies can offset up to 75% of their taxable income using carried-forward losses.
If 50% or more of the shareholding remains the same, losses can be carried forward indefinitely.
If ownership changes, 50% of the losses may still be carried forward—if the business activity remains unchanged or similar.
Do companies within the same group file tax returns separately?
No. If the group meets the conditions for forming a tax group, it can be treated as a single taxable entity, filing one consolidated tax return.
If a natural person conducts multiple business activities, are separate tax filings required?
No. If an individual is engaged in more than one taxable business activity, they are treated as a single taxable person.
Only one corporate tax return is required, reflecting the total income and expenses across all activities.
What is transfer pricing in the UAE?
Transfer pricing refers to the pricing of goods, services, and transactions between related parties or within multinational corporate groups.
To prevent tax manipulation, the UAE mandates that transfer prices match market rates—similar to what unrelated parties would pay under the same conditions.
Companies engaged in related-party transactions must:
Complete a disclosure form
Maintain local and global transfer pricing documentation
Submit a Country-by-Country Report (CbCR) if applicable
Still have questions about UAE corporate tax, accounting, or compliance?
The team at visakingsdubai is here to help. We’ll guide you through every step—from registration to filing—ensuring your business stays compliant and ready for the future.