The UAE’s new Corporate Tax regime marks a new era, one where smart compliance becomes a business advantage.
Yet many Mainland and Free Zone businesses still view Corporate Tax as complex and intimidating, unsure whether they qualify for exemptions, how their income is categorized, or how FTA updates apply to them.
At Crown Auditing, we turn tax from a liability into a strategy. Whether you operate in Mainland or in a Free Zone, we simplify compliance, optimize structure, and ensure you’re always one step ahead with clarity, foresight, and full regulatory alignment.
Understanding corporate tax in the UAE
Corporate Tax (CT) is a 9% tax on taxable income, applicable for financial years starting on or after 1 June 2023.
The first AED 375,000 of taxable income is taxed at 0% to support SMEs and early-stage businesses.
Who needs to comply?
Corporate tax applies to:
- Mainland companies (full CT application at 0% / 9%)
- Most Free Zone entities, except those meeting Qualifying Free Zone Person (QFZP) criteria
- Foreign companies with a Permanent Establishment (PE) in the UAE
- Holding companies and UAE subsidiaries of global groups
Mainland vs free zone rules
Mainland entities:
- All taxable income is subject to 0% / 9% CT.
- No special exemptions unless under specific investment sectors.
Free zone entities:
- May qualify for 0% Corporate Tax ONLY if they meet:
- Qualifying activities (e.g., HQ services, manufacturing, logistics, fund management)
- Adequate substance in the Free Zone
- Transaction with FZ entities or foreign persons
- No non-qualifying income above thresholds
- Non-qualifying income taxed at 9%
- Must register and file even if eligible for 0%.
Key Challenges Businesses Face
- Confusion about qualifying vs non-qualifying Free Zone income
- Misinterpretation of PE rules for foreign businesses
- Lack of clarity on deductible vs non-deductible expenses
- Missing documentation for related-party transactions
- Misaligned accounting policies or incomplete financials
- No system to track taxable adjustments
Consequences of non-compliance
- Administrative penalties for incorrect or late returns
- Loss of Free Zone 0% tax eligibility
- Risk during due diligence, funding, or audits
- Missed opportunities for tax planning and optimization
Positive framing
Corporate Tax isn’t just a regulation, it’s an opportunity to build a transparent, globally credible, and strategically structured business.
How Crown-Auditing navigate corporate tax for Mainland & free zone businesses?
Tax readiness assessment
- Evaluate business structure, revenue sources, and group relationships
- Determine if Free Zone entities meet QFZP criteria
- Identify Permanent Establishment exposure for foreign companies
- Review accounting records for IFRS alignment
Tax base mapping & computation
- Calculate taxable income per FTA rules
- Adjust for:
- Non-deductible expenses
- Exempt income
- Unrealized gains/losses
- Provisions
- Verify carried-forward tax losses and eligibility
- Assess transfer pricing implications
Compliance & Filing
- Maintain IFRS-compliant books
- Prepare all tax schedules and working papers
- Submit Corporate Tax returns within 9 months post year-end
- Assist with FTA registration and ongoing updates
- Handle tax payment filings and portal submissions
Strategic advisory
- Structure Mainland and Free Zone entities for optimal tax outcomes
- Advise on related-party transactions and cross-border income
- Guide Free Zone companies on maintaining QFZP status
- Recommend adjustments to dividends, management fees, and cost allocations
Technology & transparency
- Digital CT models for scenario planning
- Real-time client dashboards
- Automated deadline tracking and reminders
Quality oversight
- Dual-review mechanism for accuracy
- Partner-level review before filing
- Full documentation trail for audit readiness
Who is it for?
Who should engage Crown?
- SMEs entering taxable brackets
- Free Zone companies seeking QFZP assessment
- Large groups needing consolidation or restructuring
- Foreign companies evaluating Permanent Establishment risk
- Businesses with intercompany or cross-border transactions
- Companies needing IFRS-aligned financials for CT filing
What you’ll need?
- Latest financial statements
- Trial balance
- Ownership & entity structure
- Intercompany & related-party agreements
- Payroll data
- Contracts & revenue schedules
- Prior tax filings
When to start?
- Begin at the start of the financial year
- Ideally 3–4 months before filing deadlines
- Before reorganizing or launching new operations
- Prior to claiming Free Zone qualifying status
Engagement timeline
- CT readiness report: 1–2 weeks
- CT computation & filing: 4–6 weeks
- Ongoing advisory: quarterly or annual
Conclusion
Corporate Tax doesn’t have to be complicated when managed proactively.
Crown ensures your compliance is complete, your strategy optimized, and your peace of mind intact whether you operate in the Mainland, a Free Zone, or across multiple jurisdictions.
With structured guidance, your business gains tax clarity, regulatory confidence, and long-term foresight.
CTA: Book Your Corporate Tax Consultation • Get a Tax Readiness Report
Trust Markers: FTA-compliant advisory • 100% filing accuracy • Multi-entity expertise • UAE-certified tax specialists
FAQs
1. Who is required to pay Corporate Tax in the UAE?
All UAE businesses, except qualifying Free Zone entities (on qualifying income) and certain extractive/non-extractive industries.
2. When must Corporate Tax returns be filed?
Within 9 months from the end of the financial year.
E.g., FY ending 31 Dec 2024 → return due 30 Sep 2025.
3. What expenses are not deductible?
Fines, penalties, personal expenses, certain entertainment costs, and non-business expenses.
4. Can I offset prior-year losses or foreign taxes?
Yes, subject to FTA conditions and documentation. Crown evaluates each case.
5. How does Crown Auditing help optimize tax?
Through restructuring, clarifying qualifying income, applying legitimate deductions, enhancing record-keeping, and ensuring full FTA compliance.