Who needs to pay Corporate Tax in the UAE?
Corporate Tax applies to UAE companies and other juridical persons that are incorporated or effectively managed and controlled in the UAE. It also applies to foreign companies that have a permanent establishment in the UAE or derive income from the UAE.
UAE Corporate Tax applies to a wide range of entities operating in the UAE:
UAE Resident Entities
- Companies incorporated in the UAE
- Entities effectively managed and controlled in the UAE
- Partnerships and other juridical persons
- Permanent establishments of foreign entities
Foreign Entities
- Foreign companies with permanent establishment in UAE
- Entities deriving UAE-source income
- Companies conducting business activities in the UAE
Exemptions
- UAE government entities
- Government-controlled entities (subject to conditions)
- Investment funds (meeting specific criteria)
- Pension and social security funds
- Charitable and non-profit organizations
Special Considerations
- Free zone businesses (0% rate on qualifying income)
- Natural persons (generally not subject to corporate tax)
- Extractive businesses (may have different rates)
