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As per the UAE Corporate Tax Law, all companies operating in the UAE must register for Corporate Tax, including those operating in Free Zones. It is essential to understand that any exemptions or reliefs (like Small Business Relief, Restructuring Relief, or Group Relief) can only be availed at the time of Corporate Tax Return filing, not during registration.
Resident Person
Juridical Person
Worldwide income will be taxable (except exempt income)
Yes
Includes LLCs, PSCs, PJSCs registered in UAE
Natural Person
Income from UAE business or business activity, and foreign income connected to UAE-based business
Yes, if annual turnover exceeds AED 1 million
Income from salary, real estate investments, and personal investments are not counted in the turnover threshold
Non-Resident Person
Juridical Person
Income through nexus in UAE
Yes, if annual turnover exceeds AED 1 million
Nexus includes UAE-based immovable property
Natural Person
UAE Sourced Income
No
Subject to 0% withholding tax
Natural Person
UAE Sourced Income (without PE or nexus)
No
Subject to 0% withholding tax
A person is considered a Resident Person for Corporate Tax if:
Yes, if you are:
No, if you are:
Note: Even Exempt Persons must register before applying for exemption. This includes:
Qualifying Public Benefit Entities (Cabinet Decision No. 37 of 2023)
All Taxable Persons must register before filing their first Corporate Tax Return. The Federal Tax Authority (FTA) may also automatically register any unregistered entity it identifies as taxable.
No. Corporate Tax Registration is a separate requirement, even for businesses already registered for VAT. The Corporate Tax Registration Number must be obtained independently.
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