Corporate Tax Registration for UK Businesses

Corporate Tax Registration in UAE for UK Businesses

 

If your UK-based business is planning to operate in the UAE, you must comply with the country’s Corporate Tax regulations, which apply to all companies in the UAE — including Free Zone entities. Reliefs such as small business exemptions, restructuring reliefs, and qualifying group reliefs are only available when filing Corporate Tax returns.

Status
Person
Taxability on Income
Registration & return filing for CT requirement
Remarks
Juridical
Worldwide Income will be taxable except exempt income
Yes
Resident Person*
Natural
Income from UAE through business or business activity and Income from outside UAE which connected with business activity in the UAE.
Yes, If the annual turnover (from Jan to Dec) is more than 1 Million Dirham
Income from Salary, Wages, Real Estate Investment & Personal investment (which does not require a license), are not considered while checking the threshold of 1 Million Dirham
Permanent Establishment
Yes
Income attributable to the PE will be taxable in UAE
Juridical
Income through Nexus in UAE
Yes
Income from Immovable Property located in UAE is currently classified as Nexus
Non-Resident
Yes
Yes
Income attributable to the PE will be taxable in UAE
Natural
UAE Sourced Income**
No
Withholding tax applicable (Currently it is 0%)
UAE Sourced Income**
No
Withholding tax applicable (Currently it is 0%)

Below are considered as Resident Person for Corporate Tax purpose

Your company is incorporated or established under UAE legislation.

Your company is incorporated overseas (including in the UK) but is effectively managed and controlled in the UAE.

You are an individual conducting business or commercial activity in the UAE.

UAE Sourced Income – Some examples

 
Income from the sale of goods in the state
 
Income from services rendered or utilized or benefitted from the UAE
 
Income from movable or Immovable property in the UAE.
 
Income from sale of shares of a resident person.
 
Income from contract performed in the UAE.
 
Income from use or right to use of intellectual or intangible property in the UAE.
 
Interest earned from UAE subject to conditions
 
Insurance or reinsurance premium earned from UAE subject to condition.

Frequently Asked Questions

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Service Spectrum

Flyingcolour® Tax Consultant and J N J Auditing LLC provide UK businesses with a complete range of professional services in the UAE, including accounting and bookkeeping, corporate tax compliance, auditing, Economic Substance Regulation (ESR) advisory, anti-money laundering (AML) compliance, tax residency certificate assistance, payroll management, excise tax services, and CFO solutions. Our team of experienced professionals offers comprehensive, customised packages designed to meet the unique needs of UK companies expanding or operating in the UAE.

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