Corporate tax turned bookkeeping from an admin task into a compliance system.
UAE corporate tax for SMEs and clinics: a plain guide
The UAE introduced federal corporate tax for financial years starting on or after 1 June 2023. This guide explains the basics a business owner needs in order to ask the right questions. It is general information, not tax advice; confirm your position with a Federal Tax Authority registered tax agent.
Finance systems 7 min read
By Nour Aldein Tleti. Updated .
What is the corporate tax rate in the UAE?
Under Federal Decree-Law No. 47 of 2022, taxable income up to AED 375,000 is taxed at 0% and income above that threshold at 9%. Different rules apply to qualifying free zone persons and certain large multinational groups. Most businesses must register with the Federal Tax Authority even if they owe no tax.
The essentials
- Registration
- Taxable persons register through the FTA’s EmaraTax platform. Late registration can carry an administrative penalty.
- Tax returns
- Returns are generally due within nine months of the end of the tax period.
- Small business relief
- Resident businesses with revenue at or below AED 3 million may elect relief for tax periods ending on or before 31 December 2026, subject to conditions.
- Records
- Businesses must keep accounting records that support their return, typically for seven years.
- Free zones
- Qualifying free zone persons may benefit from 0% on qualifying income, with substance and other conditions.
Story: a clinic’s first tax year
Illustrative scenario, not a client case study.
A two-doctor clinic runs its books on spreadsheets and a basic invoicing tool.
As its first corporate tax return approaches, the accountant finds personal and clinic expenses mixed and stock never recorded.
Weeks go into reconstructing records, and some expenses can’t be supported.
The clinic moves to an ERP with a proper chart of accounts, inventory and VAT set-up for the next period.
The tax was manageable. The missing records were the expensive part.
What your finance system should do
Separate business and personal spending, record revenue by service and branch, track inventory and consumables, apply VAT correctly, and produce period-end reports your accountant can file from. Doing this continuously costs far less than reconstructing a year at deadline.
Frequently asked questions
Do I still pay VAT?
Yes. VAT at 5% is a separate tax with its own registration thresholds and returns.
Can you file my corporate tax return?
No. We build and configure finance systems; filing and tax advice should come from a registered tax agent or licensed accountant.
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Get your books tax-ready
We review how your transactions are recorded and what a clean, tax-ready setup needs.
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