Tax Agents and Corporate Tax in the UAE

With Corporate Tax now implemented across the UAE (effective June 2023), businesses are required to register, calculate, and file their corporate tax returns in line with the Federal Tax Authority (FTA) regulations.

For many companies, the transition to Corporate Tax has brought new reporting obligations and compliance risks.

A registered Tax Agent can help navigate this process — ensuring businesses understand their liabilities, claim available reliefs, and stay fully compliant.

Overview of Corporate Tax in the UAE

Corporate Tax in the UAE is governed by Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.

The main framework includes:

• 9% Corporate Tax rate on taxable income above AED 375,000.

• 0% rate on profits up to AED 375,000 (to support small businesses).

• Special incentives for Free Zone entities that meet qualifying conditions.

Compliance involves accurate calculation, timely filing, and maintenance of records — all areas where Tax Agents provide professional support.

The Role of a Tax Agent in Corporate Tax Compliance

Corporate Tax Registration

Tax Agents assist businesses in:

• Registering for Corporate Tax via the FTA’s online portal.

• Obtaining a Corporate Tax Registration Number (CTR).

• Making amendments to registration details or applying for deregistration if applicable.

They ensure that all filings are aligned with the company’s legal structure and business activity.

Calculating Taxable Income

Corporate Tax is based on accounting profit adjusted for tax purposes.
Tax Agents handle the complex process of determining taxable income by:

• Adding non-deductible expenses.

• Subtracting exempt income.

• Applying available reliefs, such as Small Business Relief or Group Relief.

They ensure calculations are accurate and compliant with FTA standards.

Preparing and Filing the Corporate Tax Return

Every taxable business must file its Corporate Tax Return within nine months of the end of its financial year.
Tax Agents prepare and submit these returns, ensuring all required documentation is complete, including:

• Financial statements

• Adjusted profit computations

• Supporting schedules and disclosures

This minimises the risk of late filing penalties or errors.

Advising on Tax Reliefs and Incentives

Tax Agents help identify and apply reliefs such as:

• Small Business Relief (for revenue under AED 3 million).

• Free Zone relief (for qualifying income).

• Group Relief (for intra-group transfers).

They also advise on tax planning strategies that optimise compliance while reducing liabilities.

Managing FTA Communication and Audits

If the FTA raises queries, requests clarifications, or conducts an audit, the Tax Agent represents the business directly.
They prepare reconciliations, respond to information requests, and manage all correspondence — ensuring issues are resolved efficiently.

Example

A Dubai-based marketing agency earns AED 2.8 million annually and is unsure if it qualifies for Small Business Relief.

After appointing a Tax Agent, the agent assesses eligibility, completes registration, prepares tax computations, and files the return — ensuring full compliance while legally reducing tax exposure.

Benefits of a Tax Agent for Corporate Tax