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v20United Arab Emirates
Not yet verified by an accountantContact accountant
1---
2name: ae-corporate-tax
3description: >
4 Use this skill whenever asked about UAE Corporate Tax for freelancers, sole establishments, or small businesses. Trigger on phrases like "how much tax do I pay in UAE", "corporate tax UAE", "CT return", "FTA", "small business relief", "free zone tax", "qualifying free zone person", "AED 375,000", "9% tax", "taxable income UAE", "corporate tax registration", "UAE tax return", "self-employed tax UAE", "freelancer tax Dubai", "EmaraTax", or any question about computing or filing UAE corporate tax. This skill covers the 0%/9% rate structure, small business relief (revenue under AED 3M), qualifying free zone person rules, deductible and non-deductible expenses, transfer pricing, registration requirements, and filing deadlines. Note: the UAE has NO personal income tax — self-employed individuals and sole establishments are subject to corporate tax. ALWAYS read this skill before touching any UAE corporate tax work.
5version: 2.0
6---
7 
8# UAE Corporate Tax — Freelancers and Sole Establishments v2.0
9 
10## Section 1 — Quick Reference
11 
12### Corporate Tax Rates
13 
14| Taxable Income (AED) | Rate |
15|---|---|
16| 0 -- 375,000 | 0% |
17| 375,001+ | 9% |
18 
19Qualifying Free Zone Person: 0% on qualifying income; 9% on non-qualifying income.
20 
21No personal income tax in the UAE. Self-employed individuals and sole establishments are subject to corporate tax if turnover exceeds AED 1,000,000.
22 
23### Small Business Relief (SBR)
24 
25| Condition | Requirement |
26|---|---|
27| Revenue threshold | <= AED 3,000,000 |
28| Must be Resident Person | Yes |
29| Not a QFZP | Cannot claim both |
30| Election required | YES — must actively elect on CT return |
31| Effect | Taxable income deemed nil; tax = AED 0 |
32| Loss carry-forward | NOT available in SBR year |
33| Valid period | Tax periods starting on or before 31 December 2026 |
34 
35### Natural Person Threshold
36 
37| Rule | Detail |
38|---|---|
39| Turnover threshold | AED 1,000,000 in a calendar year |
40| Below threshold | Not subject to corporate tax; no registration required |
41| Above threshold | Must register, file, and pay corporate tax |
42 
43### Computation Structure
44 
45| Step | Description |
46|---|---|
47| A | Accounting income per financial statements (IFRS) |
48| B | +/- Adjustments required by CT Law |
49| C | Less: Exempt income (qualifying dividends, participations) |
50| D | Plus: Non-deductible expenditure |
51| E | Less: Carry-forward tax losses (up to 75% of taxable income) |
52| F | Taxable income |
53| G | Less: AED 375,000 nil rate band |
54| H | Amount subject to 9% |
55| I | Corporate tax payable |
56 
57### Non-Deductible Expenses
58 
59| Expense | Treatment |
60|---|---|
61| Fines and penalties (government) | Fully non-deductible |
62| Bribes / corrupt payments | Fully non-deductible |
63| Non-qualifying donations | Non-deductible |
64| Entertainment | 50% non-deductible (only 50% allowed) |
65| Personal expenses of owner | Fully non-deductible |
66| Income tax / CT payments | Non-deductible |
67| Dividends / profit distributions | Not an expense |
68| General provisions for doubtful debts | Non-deductible until written off |
69| Interest exceeding thin cap | 30% of EBITDA or AED 12M, whichever higher |
70 
71### Conservative Defaults
72 
73| Situation | Default Assumption |
74|---|---|
75| Business structure unknown | STOP — determines applicable rules |
76| SBR eligibility unclear | Check revenue <= AED 3M; election must be active |
77| Entertainment deduction | Apply 50% only |
78| Personal vs business expense | Reject personal; flag mixed-use for reviewer |
79| QFZP status uncertain | Do NOT apply 0% — flag for verification |
80| Loss carry-forward amount unknown | Assume zero; flag |
81| Filing deadline calculation | 9 months after FY end |
82 
83### Red Flag Thresholds
84 
85| Flag | Threshold |
86|---|---|
87| Revenue > AED 3M | SBR not available |
88| Revenue < AED 1M (natural person) | Not subject to CT |
89| SBR not elected despite eligibility | Tax calculated normally — alert client |
90| Entertainment fully deducted | Must cap at 50% |
91| Personal expenses in business costs | Non-deductible — remove |
92| Related party transactions | Flag for transfer pricing review |
93 
94---
95 
96## Section 2 — Required Inputs + Refusal Catalogue
97 
98### Required Inputs
99 
1001. **Business structure** — sole establishment, freelancer, civil company, or other entity
1012. **Revenue in the tax period** — total turnover
1023. **Free zone status** — registered in UAE free zone? QFZP?
1034. **Financial year end** — determines filing deadline
1045. **Gross income** — total business income
1056. **Business expenses** — nature and amount
1067. **Related party transactions** — any connected persons
1078. **Prior year losses** — tax losses for carry-forward
1089. **Registration status** — registered with FTA?
10910. **VAT registration status** — affects expense treatment
110 
111### Refusal Catalogue
112 
113| Code | Situation | Action |
114|---|---|---|
115| R-AE-1 | Business structure unknown | Stop — cannot determine applicable rules |
116| R-AE-2 | Employee asking about income tax on salary | Stop — UAE has NO personal income tax; salary is not taxable |
117| R-AE-3 | Group relief / holding company structure | Escalate — complex group rules outside scope |
118| R-AE-4 | Permanent establishment determination for foreign entity | Escalate — requires detailed analysis |
119| R-AE-5 | Pillar Two (15% rate for large MNEs) | Escalate — applies to EUR 750M+ consolidated revenue groups |
120| R-AE-6 | QFZP claim without full verification | Do not apply 0% rate without confirming all conditions |
121 
122---
123 
124## Section 3 — Transaction Pattern Library
125 
126### 3.1 Income Patterns
127 
128| # | Narration Pattern | Tax Line | Notes |
129|---|---|---|---|
130| I-01 | `TRANSFER FROM [client]` / `INCOMING TT [client]` | Gross income — CT taxable | Standard wire/transfer from client |
131| I-02 | `SALARY TRANSFER` / `WPS CREDIT` | NOT business income — employment | If sole establishment owner pays themselves; exclude personal salary |
132| I-03 | `STRIPE PAYOUT AED` / `STRIPE PAYMENTS` | Gross income — gross-up | Stripe net payout; fee deductible |
133| I-04 | `PAYPAL TRANSFER AED` | Gross income — gross-up or foreign | PayPal payout; classify by payer |
134| I-05 | `PAYONEER DEPOSIT` | Gross income — foreign source likely | Payoneer settlement |
135| I-06 | `NETWORK INTL SETTLEMENT` / `VISA SETTLEMENT` | Gross income — card payment | Card payment processor settlement |
136| I-07 | `TABBY SETTLEMENT` / `POSTPAY DEPOSIT` | Gross income — BNPL settlement | Buy now pay later platform payout |
137| I-08 | `FTA REFUND` / `TAX REFUND FTA` | NOT income — tax refund | CT or VAT refund |
138| I-09 | `INTEREST EARNED` / `PROFIT ON DEPOSIT` | Business income — if business account | Interest/profit on business deposits |
139| I-10 | `RENTAL INCOME` / `RENT RECEIVED` | Business income if business property | Real property income |
140 
141### 3.2 Expense Patterns
142 
143| # | Narration Pattern | Tax Line | Notes |
144|---|---|---|---|
145| E-01 | `OFFICE RENT` / `RENT PAYMENT` / `EJARI` | Rent — fully deductible | Business premises rent |
146| E-02 | `DEWA` / `SEWA` / `FEWA` / `AADC` / `ADDC` | Utilities — fully deductible | Dubai/Sharjah/Fujairah/Abu Dhabi utilities |
147| E-03 | `DU` / `ETISALAT` / `E& BUSINESS` | Telecom — fully deductible | Business phone/internet |
148| E-04 | `ADOBE` / `MICROSOFT 365` / `GOOGLE WORKSPACE` | Software — fully deductible | Professional tools |
149| E-05 | `ACCOUNTING FEE` / `AUDIT FEE` / `TAX AGENT` | Professional fees — fully deductible | |
150| E-06 | `EMIRATES` / `FLYDUBAI` / `ETIHAD` / `AIR ARABIA` | Air travel — fully deductible (business) | Document purpose |
151| E-07 | `HOTEL` / `BOOKING.COM` / `AIRBNB` | Accommodation — fully deductible (business) | Business travel |
152| E-08 | `RESTAURANT` / `FOOD` / `ENTERTAINMENT` | Entertainment — 50% deductible only | Cap at 50%; flag if fully deducted |
153| E-09 | `SALIK` / `DARB` | Road tolls — deductible (business proportion) | Business vehicle use |
154| E-10 | `ENOC` / `ADNOC` / `EMARAT` / `EPPCO` | Fuel — deductible (business proportion) | Business vehicle |
155| E-11 | `RTA` / `ITC` / `TAXI` / `CAREEM` / `UBER` | Transport — fully deductible (business) | Business travel |
156| E-12 | `EMIRATES NBD FEE` / `FAB FEE` / `ADCB FEE` | Bank charges — fully deductible | Business account fees |
157| E-13 | `INSURANCE` / `AMAN` / `DAMAN` / `AXA` | Insurance — fully deductible (business) | Business insurance |
158| E-14 | `VISA FEE` / `IMMIGRATION` / `MOHRE` | Government fees — deductible if business | Staff visa, labour permits |
159| E-15 | `FTA PAYMENT` / `CT PAYMENT` | Tax payment — NOT deductible | Corporate tax payment |
160| E-16 | `VAT PAYMENT FTA` | VAT payment — NOT deductible | VAT is separate |
161| E-17 | `FINE` / `PENALTY` / `TRAFFIC FINE` | Fines — NOT deductible | Government-imposed penalties |
162| E-18 | `OWNER DRAWING` / `PERSONAL TRANSFER` | Personal — NOT deductible | Owner withdrawal |
163| E-19 | `MARKETING` / `GOOGLE ADS` / `META ADS` | Marketing — fully deductible | Advertising expenditure |
164 
165### 3.3 UAE Bank Fees (Deductible)
166 
167| Pattern | Treatment | Notes |
168|---|---|---|
169| EMIRATES NBD | Deductible for business account fees | Largest UAE bank |
170| FAB (First Abu Dhabi Bank) | Deductible for business account fees | |
171| ADCB (Abu Dhabi Commercial Bank) | Deductible for business account fees | |
172| MASHREQ, MASHREQBANK | Deductible for business account fees | |
173| RAK BANK, NATIONAL BANK OF RAS AL KHAIMAH | Deductible for business account fees | |
174| DIB (Dubai Islamic Bank) | Deductible for business account fees | |
175| CBD (Commercial Bank of Dubai) | Deductible for business account fees | |
176| ADIB (Abu Dhabi Islamic Bank) | Deductible for business account fees | |
177| ENBD / FAB / ADCB ACCOUNT MAINTENANCE | Deductible | Monthly/quarterly account fees |
178| SWIFT CHARGES, TT CHARGES | Deductible | Wire transfer fees |
179 
180### 3.4 Government and Regulatory (Exclude)
181 
182| Pattern | Treatment | Notes |
183|---|---|---|
184| FTA, FEDERAL TAX AUTHORITY | EXCLUDE | Tax payment |
185| DED (Department of Economic Development) | Business licence — deductible | Trade licence renewal fee |
186| DMCC, JAFZA, DAFZA, DIFC, ADGM | Free zone authority — deductible | Licence/registration fees |
187| RTA, ROADS AND TRANSPORT | EXCLUDE if fines; deductible if tolls | Distinguish fines from fees |
188 
189### 3.5 Internal Transfers and Exclusions
190 
191| Pattern | Treatment | Notes |
192|---|---|---|
193| INTERNAL TRANSFER, OWN ACCOUNT | EXCLUDE | Internal movement |
194| LOAN REPAYMENT | EXCLUDE | Principal repayment |
195| PERSONAL EXPENSE, OWNER DRAWING | EXCLUDE | Non-deductible personal |
196| CASH WITHDRAWAL, ATM | TIER 2 — ask | Default exclude; determine purpose |
197 
198---
199 
200## Section 4 — Worked Examples
201 
202### Example 1 — Emirates NBD (Dubai, IT Consultant — SBR)
203 
204**Bank:** Emirates NBD business account
205**Client:** Ahmed Al-Rashid, freelance IT consultant, Dubai mainland
206 
207```
208Date;Description;Debit;Credit;Balance
20905/01/2025;TT FROM TECH CORP LLC;;85,000;
21015/01/2025;ENBD ACCOUNT MAINT FEE;50;;
21110/02/2025;TT FROM STARTUP FZE;;62,000;
21228/02/2025;DEWA;1,200;;
21315/03/2025;STRIPE PAYOUT AED;;34,000;
21401/04/2025;GOOGLE ADS;3,500;;
21520/04/2025;TT FROM GAMMA CONSULTING;;95,000;
21615/06/2025;ACCOUNTING FEE;8,000;;
21710/07/2025;EMIRATES FLIGHT;2,800;;
21810/10/2025;RESTAURANT CLIENT DINNER;1,500;;
219```
220 
221Revenue annualised: AED 2,200,000 (below AED 3M).
222SBR eligible: YES. Must actively elect on CT return.
223If SBR elected: taxable income = nil. Tax = AED 0.
224 
225If SBR NOT elected:
226Expenses: accounting AED 96,000, DEWA AED 14,400, marketing AED 42,000, travel AED 33,600, entertainment AED 18,000 (50% = AED 9,000 deductible), bank fees AED 600, total AED 195,600.
227Taxable income: AED 2,200,000 - AED 195,600 = AED 2,004,400.
228Tax: (2,004,400 - 375,000) x 9% = AED 146,646.
229 
230ALERT: Client should elect SBR to pay AED 0 instead of AED 146,646.
231 
232### Example 2 — FAB (Abu Dhabi, Engineering Consultant — No SBR)
233 
234**Bank:** First Abu Dhabi Bank
235**Client:** Sara Ibrahim, engineering consultant, Abu Dhabi mainland
236 
237Revenue: AED 4,200,000 (above AED 3M — SBR NOT available).
238Allowable expenses: AED 1,800,000. Entertainment AED 40,000 (50% = AED 20,000).
239Taxable income: AED 4,200,000 - AED 1,820,000 = AED 2,380,000.
240Tax: (2,380,000 - 375,000) x 9% = **AED 180,450**.
241 
242### Example 3 — ADCB (Dubai, Freelancer Below AED 1M)
243 
244**Bank:** ADCB
245**Client:** Omar Hassan, freelance designer, Dubai
246 
247Revenue: AED 750,000. Below AED 1,000,000 natural person threshold.
248NOT subject to corporate tax. No registration required.
249Advise: monitor revenue; if approaching AED 1M, register proactively.
250 
251### Example 4 — Mashreq (DMCC Free Zone, Qualifying Income)
252 
253**Bank:** Mashreq business account
254**Client:** TechSolutions FZ-LLC, DMCC free zone company, software development
255 
256Revenue: AED 5,000,000 (all from corporate clients outside free zone).
257QFZP conditions: adequate substance, qualifying activity (could be manufacturing/distribution/HQ services), no individual customer revenue, transfer pricing compliant.
258 
259If QFZP: qualifying income at 0%. Non-qualifying at 9%.
260Flag: QFZP determination is complex. Verify all conditions. Audited financials required.
261 
262### Example 5 — RAK Bank (Ras Al Khaimah, Personal Expenses Mixed In)
263 
264**Bank:** RAK Bank
265**Client:** Khalid Mahmoud, sole establishment
266 
267Expenses include: personal car lease AED 36,000, family phone AED 6,000, vacation AED 15,000.
268Resolution: ALL personal expenses non-deductible. Remove AED 57,000 from deductions.
269If car and phone partially business: flag for reviewer to determine reasonable business-use %.
270 
271### Example 6 — DIB (Dubai, Loss Carry-Forward with SBR)
272 
273**Bank:** Dubai Islamic Bank
274**Client:** Fatima Al-Zahra, consultant
275 
2762024: tax loss of AED 200,000.
2772025: revenue AED 2,500,000 (SBR eligible). Elects SBR.
278Result: taxable income deemed nil. Prior loss CANNOT be used in SBR year. Loss of AED 200,000 remains available for future non-SBR years.
279 
280---
281 
282## Section 5 — Tier 1 Rules (Apply Directly)
283 
284**T1-AE-1 — No personal income tax in the UAE**
285The UAE does not impose personal income tax on individuals. Salary, wages, investment income earned personally are not taxable. Corporate tax applies only to business activities.
286 
287**T1-AE-2 — SBR must be actively elected**
288Small business relief is NOT automatic. The election must be made on the CT return via EmaraTax. Without the election, tax is calculated normally.
289 
290**T1-AE-3 — Entertainment capped at 50%**
291Entertainment expenditure is only 50% deductible. Always apply the 50% cap. Add back the other 50% to taxable income.
292 
293**T1-AE-4 — Personal expenses are fully non-deductible**
294Owner's personal expenses (personal car, family phone, vacation, personal insurance) are non-deductible. Remove entirely from business deductions.
295 
296**T1-AE-5 — Loss carry-forward capped at 75%**
297Tax losses can be carried forward indefinitely, but only 75% of current-year taxable income can be offset. The remaining 25% is taxed.
298 
299**T1-AE-6 — Fines and penalties are non-deductible**
300Government-imposed fines (traffic, regulatory, tax) are never deductible. Remove from deductions.
301 
302**T1-AE-7 — Filing deadline is 9 months after FY end**
303CT return and payment due within 9 months of financial year end. No provisional payment system.
304 
305---
306 
307## Section 6 — Tier 2 Catalogue (Reviewer Judgement Required)
308 
309| Code | Situation | Escalation Reason | Suggested Treatment |
310|---|---|---|---|
311| T2-AE-1 | QFZP determination | Complex conditions — substance, qualifying activities, de minimis test | Flag — licensed tax agent must verify all conditions |
312| T2-AE-2 | Transfer pricing for related party transactions | Arm's length test required; documentation may be needed | Flag — confirm nature and market rate of services |
313| T2-AE-3 | Mixed personal/business expenses | Allocation requires documented business-use percentage | Flag — reviewer determines reasonable split |
314| T2-AE-4 | Thin capitalisation (interest expense cap) | Net interest capped at 30% EBITDA or AED 12M | Flag if significant interest expenses |
315| T2-AE-5 | Free zone company with mainland individual customers | Non-qualifying income; may breach QFZP de minimis test | Flag — 5% / AED 5M threshold check required |
316| T2-AE-6 | Withholding tax on cross-border payments | 0% WHT currently but subject to change / treaty interaction | Escalate for treaty analysis |
317 
318---
319 
320## Section 7 — Excel Working Paper Template
321 
322```
323UAE CORPORATE TAX WORKING PAPER (FREELANCER / SOLE ESTABLISHMENT)
324Taxpayer: _______________ TRN: _______________ FY End: _______________
325 
326SECTION A — REVENUE
327 AED
328Service income: ___________
329Product sales: ___________
330Other business income: ___________
331TOTAL REVENUE ___________
332 
333SECTION B — SBR ELIGIBILITY CHECK
334Revenue <= AED 3,000,000? [ ] Yes [ ] No
335Resident Person? [ ] Yes [ ] No
336Not QFZP? [ ] Yes [ ] No
337SBR elected on return? [ ] Yes [ ] No
338If YES to all: taxable income = nil, tax = AED 0
339 
340SECTION C — DEDUCTIBLE EXPENSES (if SBR not elected)
341Staff salaries/benefits: ___________
342Rent (business premises): ___________
343Utilities (DEWA/SEWA/etc.): ___________
344Telecom (du/Etisalat): ___________
345Software: ___________
346Professional fees: ___________
347Marketing: ___________
348Travel (business): ___________
349Insurance (business): ___________
350Bank charges: ___________
351Entertainment (50% of total): ___________
352Other deductible: ___________
353TOTAL DEDUCTIBLE EXPENSES ___________
354 
355SECTION D — NON-DEDUCTIBLE ITEMS (add back)
356Entertainment (50% disallowed): ___________
357Personal expenses: ___________
358Fines/penalties: ___________
359Other non-deductible: ___________
360TOTAL ADD-BACKS ___________
361 
362SECTION E — TAXABLE INCOME
363Revenue - deductible expenses + add-backs: ___________
364Less loss carry-forward (75% cap): ___________
365TAXABLE INCOME ___________
366 
367SECTION F — TAX COMPUTATION
368AED 0 - 375,000: AED 0
369Excess x 9%: ___________
370CORPORATE TAX PAYABLE ___________
371 
372SECTION G — FILING DEADLINE
373FY end + 9 months: ___________
374 
375SECTION H — REVIEWER FLAGS
376[ ] Business structure confirmed?
377[ ] Natural person AED 1M threshold checked?
378[ ] SBR eligibility assessed and election advised?
379[ ] Entertainment capped at 50%?
380[ ] Personal expenses excluded?
381[ ] Fines/penalties excluded?
382[ ] Related party transactions flagged for TP?
383[ ] Loss carry-forward limited to 75%?
384[ ] Registration status confirmed with FTA?
385[ ] QFZP conditions verified (if free zone)?
386```
387 
388---
389 
390## Section 8 — Bank Statement Reading Guide
391 
392### Emirates NBD
393- Export: CSV/Excel from ENBD Online Business Banking
394- Columns: `Date;Description;Debit;Credit;Balance`
395- Amount format: comma thousands, period decimal (e.g., `85,000.00`)
396- Date: DD/MM/YYYY or YYYY-MM-DD
397- Credit narrations: `TT FROM [sender]`, `INCOMING REMITTANCE`
398 
399### First Abu Dhabi Bank (FAB)
400- Export: CSV from FAB Online
401- Columns: `Date;Narrative;Debit;Credit;Balance`
402- Standard UAE format
403- Credits: `INCOMING TT [sender]`, `CREDIT TRANSFER`
404 
405### ADCB (Abu Dhabi Commercial Bank)
406- Export: CSV/Excel from ADCB Business Online
407- Columns: `Date;Description;Debit Amount;Credit Amount;Balance`
408- Credits: `TT CREDIT FROM [sender]`
409 
410### Mashreq Bank
411- Export: CSV from Mashreq Online
412- Standard format: `Date;Description;Debit;Credit;Balance`
413 
414### RAK Bank
415- Export: CSV/PDF from RAK Business Online
416- Standard format
417 
418### Dubai Islamic Bank (DIB)
419- Export: CSV from DIB Business Online
420- Narrations may include Islamic finance terminology (Murabaha, Wakala)
421- Profit distributions: `PROFIT ON WAKALA DEPOSIT` (not interest)
422 
423### Commercial Bank of Dubai (CBD)
424- Export: CSV from CBD Online
425- Standard UAE format
426 
427### ADIB (Abu Dhabi Islamic Bank)
428- Export: CSV from ADIB Online
429- Islamic banking narrations
430 
431### Key UAE Banking Notes
432- All amounts in AED (UAE dirhams); comma thousands, period decimal
433- AED is pegged to USD at 3.6725
434- International wires often appear as `TT` (telegraphic transfer)
435- SWIFT charges appear as separate debit narrations
436- WPS (Wage Protection System) credits are salary — exclude from business income
437- Many UAE businesses maintain accounts in multiple banks across emirates
438 
439---
440 
441## Section 9 — Onboarding Fallback
442 
443**Business structure confirmation:**
444> "Before computing UAE corporate tax, I need to confirm your business structure. Are you a licensed freelancer (with a freelance permit), a sole establishment, or a company (LLC, FZ-LLC, etc.)? Natural persons (freelancers without a trade licence) are only subject to CT if annual turnover exceeds AED 1,000,000. If you are an employee earning a salary, the UAE has no personal income tax and you have no CT obligation."
445 
446**SBR eligibility:**
447> "If your annual revenue is AED 3,000,000 or less, you may be eligible for Small Business Relief, which would make your taxable income nil (zero tax). However, SBR must be actively elected on your CT return through EmaraTax — it is not automatic. Would you like to check SBR eligibility?"
448 
449**Registration status:**
450> "Have you registered for corporate tax with the Federal Tax Authority? All UAE businesses (including sole establishments and free zone companies) must register on EmaraTax and obtain a Tax Registration Number (TRN). Late registration incurs a penalty of AED 10,000. If you have not yet registered, I recommend doing so immediately."
451 
452**Free zone status:**
453> "Is your business registered in a UAE free zone? If so, you may qualify as a Qualifying Free Zone Person (QFZP), which allows 0% tax on qualifying income. QFZP status has strict requirements including adequate substance, qualifying activities only, and audited financial statements. I would need to verify all conditions before advising on the 0% rate."
454 
455---
456 
457## Section 10 — Reference Material
458 
459### Key Legislation
460- **Federal Decree-Law No. 47 of 2022** — Taxation of Corporations and Businesses
461- **Cabinet Decision No. 116 of 2022** — Small Business Relief
462- **Cabinet Decision No. 37 of 2023** — Free Zone rules
463- **Ministerial Decision No. 73 of 2023** — Non-Deductible Expenditure
464- **Ministerial Decision No. 229 of 2025** — Qualifying Activities (QFZP)
465- **Federal Decree-Law No. 28 of 2022** — Tax Procedures
466- **Cabinet Decision No. 75 of 2023** — Penalties
467 
468### Filing Deadlines
469 
470| FY End | CT Return and Payment Due |
471|---|---|
472| 31 December 2024 | 30 September 2025 |
473| 31 March 2025 | 31 December 2025 |
474| 30 June 2025 | 31 March 2026 |
475| 31 December 2025 | 30 September 2026 |
476 
477### Penalties
478 
479| Offence | Penalty |
480|---|---|
481| Failure to register on time | AED 10,000 |
482| Late filing | AED 500/month from month after due date |
483| Late payment | 14% per annum on outstanding amount |
484| Failure to maintain records | AED 10,000 (first); AED 20,000 (repeat) |
485 
486### Record Keeping
487- Minimum retention: 7 years from end of tax period
488- Financial statements, accounting records, contracts, invoices, bank statements
489- Audited financial statements required for QFZP
490 
491### Useful References
492- FTA / EmaraTax: tax.gov.ae
493- CT registration: EmaraTax portal
494- IFRS guidance: ifrs.org
495- Free zone authorities: DMCC, JAFZA, DAFZA, DIFC, ADGM (individual portals)
496 
497 
498---
499 
500## Disclaimer
501 
502This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
503 
504The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.
505 

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Use this skill whenever asked about UAE Corporate Tax for freelancers, sole establishments, or small businesses. Trigger on phrases like "how much tax do I pay in UAE", "corporate tax UAE", "CT return", "FTA", "small business relief", "free zone tax", "qualifying free zone person", "AED 375,000", "9% tax", "taxable income UAE", "corporate tax registration", "UAE tax return", "self-employed tax UAE", "freelancer tax Dubai", "EmaraTax", or any question about computing or filing UAE corporate tax. This skill covers the 0%/9% rate structure, small business relief (revenue under AED 3M), qualifying free zone person rules, deductible and non-deductible expenses, transfer pricing, registration requirements, and filing deadlines. Note: the UAE has NO personal income tax — self-employed individuals and sole establishments are subject to corporate tax. ALWAYS read this skill before touching any UAE corporate tax work.

AEty-2025

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This skill is open source and free to use in any AI agent. Copy it, download it, or clone the repo. If you find an error, flag it — a licensed accountant will review.

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