BCL Globiz · UAE Corporate Tax

Corporate Tax Services in Dubai, UAE

DMCC traders. DIFC funds. Mainland Dubai LLCs and MNE subsidiaries. CT registration, QFZP and the annual return, handled end to end.

Tax Snapshot for Dubai

Federal Decree-Law No. 47 of 2022. Applicable from financial years starting on or after 1 June 2023.

0%

Up to AED 375K

9%

Above AED 375K

1,000+

1000+ Active Clients

30+

Industries Served

94%

Client Renewal Rate

35+

Years of Experience

300+

Experts Globally

Truly Transparent Pricing! No Hidden Fees!

Corporate Tax Compliance

MicroBiz CT Assist Package: Small Business Relief (SBR)

Growth Accelerator CT Package: Standard Tax Rates for Growing Businesses (Turnover above AED 3 Million)

QFZP Shield Pro Package: Qualifying Free Zone Person (QFZP) Status

AED 500

AED 1,000

AED 2,500

Truly Transperant Pricing! No Hidden Fees!

Corporate Tax Compliance

MicroBiz CT Assist Package: Small Business Relief (SBR)

AED 1,050

Growth Accelerator CT Package: Standard Tax Rates for Growing Businesses (Turnover above AED 3 Million)

AED 2,625

QFZP Shield Pro Package: Qualifying Free Zone Person (QFZP) Status

AED 4,725

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Quick take for Dubai

DMCC, DIFC and Dubai Internet City entities can reach 0% through QFZP if substance, activity and audit hold.

Mainland Dubai LLCs and SMEs sit on the standard 0% and 9% slab. Family groups need TP discipline.

Most MNE subsidiaries in Dubai trigger Local File at AED 40M and Master File at AED 3.15B group revenue.

Dubai CT Landscape

Corporate Tax in Dubai at a glance

Dubai is the UAE commercial hub. CT planning here spans the broadest free zone mix in the country, plus mainland LLCs, family trading groups and a high concentration of MNE subsidiaries.

DMCC and qualifying commodities

Commodity traders need the FTA list check. On list trades reach 0% under QFZP. Off list items fall to 9%.

DIFC and financial services

Fund management, wealth management and treasury to related parties sit on the FTA qualifying list. DFSA audit infrastructure usually already exists.

Mainland Dubai

LLCs, family trading houses and professional services on the 0% and 9% slab. TP discipline is the recurring topic.

MNE subsidiaries

Distribution arms, regional HQs, IP and treasury entities. Master File, Local File and CbC reporting often apply.

0 %

Tax Rate

Up to AED 375,000

Small businesses, startups and sole proprietors. Zero liability on this slab.

9%

Tax Rate

Exceeding AED 375,000

Mainland and free zone businesses. The standard UAE corporate tax rate.

15 %

Tax Rate

MNEs ≥ EUR 750M revenue

Large multinationals. OECD Pillar Two, effective from January 2025.

Filing & Payment. Businesses must register with the Federal Tax Authority, file tax returns and pay any tax due within specified deadlines. The CT return must be submitted within 9 months of the end of the relevant tax period.

Local Context

Dubai industry mix and CT impact

Broadest free zone mix

DMCC, DIFC, Dubai Internet City, Dubai South, IFZA, Meydan. Each has a different QFZP profile and customer mix.

TP intensity

Dubai has the highest density of MNE subsidiaries in the GCC. Local File at AED 40M aggregate. Master File at AED 3.15B group revenue.

Family group structuring

Multi entity ownership across mainland and free zones. Tax group election can flatten the AED 375K threshold across qualifying entities.

Worked Examples

Practical Tax Calculations for Dubai

Rates mean little without context. Here are three Dubai-specific examples showing exactly how corporate tax is calculated for typical entities in this emirate.

DMCC Commodity Trader (QFZP)

Qualifying commodity trading, AED 10M income

Qualifying commodity trading income at 0%.

De minimis check passed.

QFZP elected.

Total Tax Liability

AED 0

DIFC Fund Manager (QFZP, mixed)

AED 8M total revenue, 4% non qualifying

Qualifying fund management AED 7.68M at 0%.

Non qualifying AED 320K at 9% equals AED 28,800.

QFZP retained.

Total Tax Liability

AED 28,800

Mainland Dubai LLC

AED 1.5M net profit

First AED 375K at 0%.

Remaining AED 1,125,000 at 9% equals AED 101,250.

Total Tax Liability

AED 101,250

Planning Priorities

Corporate Tax Planning in Dubai

Each segment of Dubai’s economy pulls on a different part of the UAE corporate tax framework. These are the four planning priorities we work through with most Dubai clients.

01

DMCC and Commodity Traders

Confirm every commodity against the FTA qualifying list. Customer mix monitoring for de minimis.

02

DIFC Regulated Entities

Substance plus qualifying activity tests, with the DFSA prudential overlay. Audited financials are non negotiable.

03

Mainland LLCs and Family Groups

Standard 0% and 9% slab. Tax group election and TP documentation are the levers.

04

MNE Subsidiaries

Master File, Local File and CbC triggered by group thresholds. TP audit defence file maintained continuously.

What We Do

Comprehensive Corporate Tax Services in Dubai

End-to-end Corporate Tax solutions tailored for Dubai businesses.

✓

TRN registration on EmaraTax

For DMCC, DIFC, mainland and other Dubai free zone entities.

✓

DMCC and DIFC QFZP eligibility memo

Activity, substance and de minimis check.

✓

Mainland LLC and family group CT advisory

Tax group election analysis and inter entity TP.

✓

MNE subsidiary transfer pricing

Master File, Local File and CbC reporting coordination.

✓

CT return preparation for Dubai

Reconciled to audited financials.

✓

Ongoing advisory through the tax year

FTA correspondence and audit defence.

Free Zone

QFZP Requirements in UAE Free Zones

To qualify as a Qualifying Free Zone Person under UAE Corporate Tax law and benefit from the 0% rate on qualifying income, a Free Zone entity must meet ALL six conditions simultaneously.

01

Adequate Substance

Maintain sufficient employees, assets and operational expenses within the Free Zone.

02

Qualifying Income

Earn income primarily from qualifying activities. Keep non qualifying income within de minimis limits.

03

0% CT Election

Formally opt into the 0% regime instead of defaulting to the standard 9% rate.

04

Transfer Pricing Compliance

Conduct related party transactions at arm length with proper documentation.

05

Audited Financials

Prepare and maintain audited financial statements for each tax period.

06

Additional Rules

Follow any supplementary requirements issued by the Minister of Finance.

NOTE. Failing even ONE of these conditions causes the whole income base (not only the non qualifying portion) to be taxed at the standard 9% rate. QFZP status needs ongoing monitoring, not a one time assessment.

FTA-approved

Qualifying & Excluded Activities

Your free zone entity actual activities must fall within the FTA Qualifying Activities list (or be ancillary to it) to benefit from the 0% rate. Activities on the Excluded list are taxed at 9%.

Qualifying · 0%

Qualifying Activities

Manufacturing & processing of goods or materials

Trading of Qualifying Commodities

Holding of shares and other securities for investment

Ownership, management & operation of ships

Reinsurance services

Fund management services

Wealth and investment management services

Headquarter services to Related Parties

Treasury and financing services to Related Parties

Financing & leasing of aircraft

Distribution of goods from a Designated Zone

Logistics services

Any ancillary activity to the above

Excluded · 9%

Excluded Activities

Banking activities

Insurance activities (other than reinsurance & specified captives)

Finance & leasing other than to related parties

Ownership or exploitation of UAE-situated immovable property

Ownership or exploitation of intellectual property (modified nexus)

Any ancillary activity to the above

Transfer Pricing

Transfer Pricing Thresholds

Related-party transactions must be at arm’s length. Documentation requirements escalate with group size and transaction volume.

Master File

AED 200M+

Required where entity revenue is AED 200 million or more, or MNE Group consolidated revenue is AED 3.15 billion or more.

Local File

AED 200M+

Required where entity revenue is AED 200 million or more, or MNE Group consolidated revenue is AED 3.15 billion or more.

Country-by-Country Report (CbCR)

AED 3.15B+

For Ultimate Parent Entities of MNE Groups with consolidated revenue of AED 3.15 billion or more.

Related Party Transaction Schedule (within the TP Disclosure Form)

AED 40M+

Required where aggregate Related Party transactions exceed AED 40 million; each transaction category over AED 4 million must be disclosed.

Connected Person Schedule (within the TP Disclosure Form)

AED 500,000+

Required where aggregate payments/benefits to each Connected Person (including that Connected Person’s Related Parties) exceed AED 500,000.

What Non-Compliance Costs

UAE Corporate Tax Penalties

FTA enforcement is intensifying. Penalties accumulate and are not negotiable.

Violation Penalty Notes

Failure to register for Corporate Tax AED 10,000 Per instance. FTA notifies the deadline.

Late submission of CT return AED 500 then AED 1,000 per month First 12 months at AED 500. Thereafter AED 1,000.

Failure to maintain financial records AED 10,000 then AED 20,000 Records kept 7 years minimum.

Failure to submit audited financials AED 50,000 Applies to larger entities.

Incorrect CT return (no fraud) AED 500 to AED 20,000 Based on underpaid tax amount.

Tax evasion / fraudulent return Up to 5× unpaid tax Plus criminal referral. Personal liability possible.

Why BCL Globiz

The corporate tax partner Dubai businesses trust

What our Dubai clients get from working with BCL Globiz:

✓

DMCC, DIFC and Dubai Internet City QFZP filings

✓

MNE subsidiary CT and TP, Master File, Local File and CbC

✓

Mainland LLC and family group tax group elections

✓

DFSA audit financials reconciled with FTA CT filing

✓

Dedicated Manager with WhatsApp access

✓

Filings ahead of the 9 month FTA deadline

Included in our Dubai CT engagement

FTA TRN registration via EmaraTax

DMCC, DIFC and free zone QFZP eligibility memo

Tax group election analysis for mainland family groups

TP disclosure form and Local File where applicable

DFSA or external audit financials coordination

CT return preparation, review and filing

Penalty exposure scan and remediation plan

Dedicated Manager with WhatsApp access

Talk to a Tax Manager

Frequently Asked Questions

Dubai Corporate Tax: Common Questions

The questions Dubai businesses ask us most often, answered specifically for this emirate’s economic profile.

Does DMCC registration alone make my entity a QFZP?

No. DMCC registration makes you a Free Zone Person. QFZP additionally needs substance, qualifying activity income, the 0% election, TP compliance and audited financials. All six together.

My DMCC entity trades a commodity not on the FTA list. CT impact?

The income is non qualifying. Within the 5% or AED 5M de minimis, QFZP is retained and only that slice is taxed at 9%. Above de minimis, the entire base flips to 9%.

Are DIFC firms automatically QFZPs?

No. DIFC is a financial free zone with DFSA regulation. Qualifying activities (fund management, wealth management, reinsurance, treasury to related parties) sit on the FTA list. QFZP still requires all six conditions to hold simultaneously.

Mainland Dubai LLC at AED 2.8M revenue. Should I elect Small Business Relief?

Likely yes, if revenue has stayed below AED 3M every period since 1 June 2023. SBR treats taxable income as zero. The election is locked in once made.

When is the Master File required for a Dubai entity?

When the UAE entity is part of an MNE group with consolidated revenue of AED 3.15B or more (approximately EUR 750M).

Can a mainland Dubai LLC and a DMCC entity form a tax group?

A QFZP and a standard rate entity cannot be in the same tax group. The two regimes are incompatible. Either keep them separate or restructure into a single regime.

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Violation	Penalty	Notes
Failure to register for Corporate Tax	AED 10,000	Per instance. FTA notifies the deadline.
Late submission of CT return	AED 500 then AED 1,000 per month	First 12 months at AED 500. Thereafter AED 1,000.
Failure to maintain financial records	AED 10,000 then AED 20,000	Records kept 7 years minimum.
Failure to submit audited financials	AED 50,000	Applies to larger entities.
Incorrect CT return (no fraud)	AED 500 to AED 20,000	Based on underpaid tax amount.
Tax evasion / fraudulent return	Up to 5× unpaid tax	Plus criminal referral. Personal liability possible.