Corporate Tax
Corporate Tax is now an established part of the UAE business environment, with implications extending well beyond registration and annual return filing. The regime affects how businesses calculate taxable income, structure transactions and groups, manage related-party arrangements, assess free zone eligibility, and make important commercial decisions.
Sun Management Group supports businesses throughout the Corporate Tax lifecycle, covering initial assessments, registration and structuring through to tax calculations, return filing, transfer pricing, ongoing advisory and dispute resolution. Combining technical knowledge of Federal Decree-Law No. 47 of 2022, as amended, with a practical understanding of your operations, we help you meet your obligations, manage tax risk and maintain a clear, defensible tax position.
Applicable Rates
| Taxable Income | Applicable Rate | Notes |
|---|---|---|
|
Up to AED 375,000 |
0% |
Supports startups and small businesses |
|
Above AED 375,000 |
9% |
Standard rate, applied only to the portion above the threshold |
|
Qualifying Free Zone Persons (QFZP) |
0% / 9% |
0% on qualifying income; 9% on non qualifying income |
|
Large Multinationals (Global MNEs) |
15% |
Under Domestic Minimum Top-up Tax (DMTT) rules – groups with consolidated global revenue above EUR 750 million |
|
Small Business Relief |
0% (elective) |
Available to eligible resident entities with gross revenue below AED 3 million, up to the year 2029 |
Who is Subject to Corporate Tax?
Resident Juridical Persons
All entities incorporated, established, or effectively managed and controlled in the UAE, including mainland and free zone companies
Non-Resident Juridical Persons
Foreign entities with a UAE Permanent Establishment or UAE-sourced income
Natural Persons
Sole proprietors, licensed professionals, and freelancers with annual business turnover above AED 1 million
Who is Exempt / Out of Scope?
Personal Income
Salaries, employment income, personal real estate rental yields, private bank interest and investment gains
Government and Government-controlled Entities
Qualifying public benefit organizations, and qualifying investment funds (subject to conditions)
Our Engagement Process
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Our Corporate Tax Services
Corporate Tax Registration & Setup
Establishing a clean tax profile from day one is essential. We manage the administrative and structural onboarding process to integrate your business seamlessly into the tax regime.
- FTA portal (EmaraTax) registration to secure your Tax Registration Number (TRN)
- Assessment of entity structure to determine correct tax classification
- Feasibility review for forming a Tax Group to simplify filing and optimize outcomes
Tax Compliance & Return Filing
Avoid administrative penalties and maintain accurate, timely compliance. We manage the entire lifecycle of your annual compliance obligations.
Return Filing
- Corporate Tax computation, reconciling accounting profit or loss with taxable income under UAE Corporate Tax Law
- Review of provisions, depreciation adjustments, non-deductible expenditure and exempt income
- Assessment and application of available reliefs and elections, including Small Business Relief and tax-loss utilisation, where eligible
- Preparation of Related Party and Connected Person disclosures, together with the required supporting schedules
- Review and timely submission of the annual Corporate Tax return through EmaraTax
Deregistration
- Assessment of deregistration eligibility, applicable deadlines and documentation requirements
- Review of historical filings and settlement of outstanding Corporate Tax liabilities and penalties
- Preparation and submission of the final Corporate Tax return and required closure documentation
- Coordination with liquidators, auditors, management and the FTA until the deregistration process is completed
Corporate Tax Advisory & Planning
Corporate Tax planning should begin before important business decisions are made. Our advisory services help you understand the tax implications of proposed transactions, compare available options and develop commercially practical strategies that remain aligned with UAE Corporate Tax Law.
- Corporate Tax impact assessments and scenario modelling for major transactions, investments, contracts and changes to business models
- Tax-efficient structuring of acquisitions, disposals, financing arrangements and corporate reorganisations
- Assessment and implementation of Qualifying Group Relief, Business Restructuring Relief, Participation Exemption and other available exemptions and reliefs
- Review of commercial agreements and proposed transactions to identify potential tax exposures before execution
- Development of Corporate Tax governance frameworks, internal policies and controls to support informed decision-making
- Ongoing advisory on legislative changes, new FTA guidance and their implications for your business
Qualifying Free Zone Person (QFZP) Assessment
Operating within a Free Zone does not automatically guarantee a 0% tax rate. We help you navigate the complex conditions required to maintain your incentive status.
- Eligibility audits against QFZP criteria; the substance test, non-qualifying revenue thresholds, and arm's length pricing
- Structuring of internal operations and transactions to prevent accidental disqualification
- Ongoing monitoring to safeguard your preferential 0% rate
Tax Residency Certificate (TRC) Applications
To claim treaty benefits under international tax agreements, businesses and individuals must formally prove their tax status.
- Eligibility review of corporate management and control structure (or physical presence, for individuals)
- End-to-end preparation and submission of TRC applications to the relevant tax authorities
- Support securing certificates needed to access treaty benefits
Private Clarifications & Advance Pricing Agreements (APA)
When tax laws are ambiguous or transfer pricing transactions carry high stakes, we help you secure binding, official certainty directly from the tax authority.
- Drafting and submitting formal clarification requests on complex or unique tax positions
- Negotiating unilateral or bilateral Advance Pricing Agreements (APAs) with tax authorities
- Securing upfront certainty on transfer pricing methodologies
Tax Audit Support & Dispute Resolution
If your business is selected for a tax audit or formal review, we act as your first line of defense.
- Pre-audit review of records, coordination with tax auditors, and management of information requests
- Drafting and filing of official appeals and reconsiderations
- Full dispute resolution management for unfavorable tax assessments or penalties