There are several entities that are exempted from Corporate Tax in UAE.
Income below AED 375,000
If your annual profit is less than AED 375,000, you will not have to pay any tax so 0% corporate tax rate applicable. This exemption is to encourage small businesses and motivate start up businesses.
Earning in Personal Capacity
If you are not involved in any commercial activities but investing in property or gaining interest from bank deposits, you are don’t have to pay Corporate tax. This is to ensure that people keep on investing and save without any additional liabilities.
Freelance Professionals (Subject to Annual Income)
Freelancers are not completely exempted from the corporate tax in UAE. Freelancers who have annual income below AED 375,000 are exempted. If you as a freelancer earning more than AED 375,000 annually then you have to pay 9% corporate tax.
Natural Resource Extraction
Organizations who are involved in natural resource extraction such as oil and gas are exempted from Corporate tax and will only be subject to emirate level tax. To remain competitive globally it is important for the UAE to extract natural resources and drive economic growth.
Additional Exemptions
Entities that manage investment funds, public pensions, and social security funds are exempted from corporate tax subject to conditions.
Understanding the corporate tax exemptions required in depth knowledge about the laws and regulations set by FTA. At Alpha Auditing we have well versed tax professionals who understand the corporate tax laws and provide you best tax consultancy services. We help you understand the exemptions and how to claim them. If you are looking for reliable corporate tax services in UAE, get in touch now!