For decades, the UAE’s appeal to global investors was largely driven by its tax-free business environment. But with the introduction of corporate tax—effective June 1, 2023—this landscape is evolving. The UAE’s move to implement a 9% corporate tax on business profits marks a shift toward aligning with international tax standards, enhancing transparency, and promoting long-term fiscal sustainability.

As this new regime takes effect, corporate tax accountants are becoming indispensable. They help businesses decode the law, calculate tax obligations, structure operations efficiently, and avoid penalties. In this article, we explore the role of corporate tax accountants in the UAE, the benefits they bring, and why every business—big or small—should consider their expertise.

What Is Corporate Tax in the UAE?

Corporate tax is a direct tax levied on the taxable income of companies and other business entities operating in the UAE. The Federal Tax Authority (FTA) now requires most businesses to:

• Register for corporate tax

• File tax returns annually

• Maintain accurate records and documentation

Who is Subject to Corporate Tax?

• UAE mainland companies

• Free zone companies (with specific qualifying conditions)

• Foreign entities with a UAE permanent establishment

• Self-employed individuals or freelancers operating under a trade license

Key Highlights of UAE Corporate Tax Law

• Tax Rate: 0% on income up to AED 375,000, 9% above that

• Exemptions: Public benefit entities, government-owned firms, extractive industries

• Transfer Pricing: Businesses must price related-party transactions at market value and maintain detailed records

Who Is a Corporate Tax Accountant?

A corporate tax accountant is a finance professional who ensures a company complies with all tax regulations, calculates liabilities accurately, and files returns on time. In the UAE, where the corporate tax system is still new, these experts also serve as advisors, helping companies interpret and implement evolving rules.

Their work involves more than basic bookkeeping—it includes strategic tax planning, risk management, and alignment of business activities with legal requirements.

Why Corporate Tax Accountants Are Crucial in the UAE

1. Interpreting the New Law

The UAE corporate tax framework is detailed and still evolving, with frequent updates from the FTA. Corporate tax accountants help businesses interpret these changes and apply them correctly, reducing the risk of non-compliance.

2. Accurate Profit Calculation

Since the corporate tax is calculated on net profits, businesses must maintain IFRS-compliant financial statements. A corporate tax accountant ensures accurate calculations, accounting for depreciation, provisions, and allowable deductions.

3. FTA Registration and Reporting

From corporate tax registration to filing returns and preparing supporting documentation, these professionals handle the entire compliance cycle, ensuring that deadlines are met and records are in order.

4. Strategic Tax Planning

Tax accountants can help structure your business in a tax-efficient way—such as utilizing group relief, restructuring transactions, or taking advantage of qualifying free zone benefits. This can significantly reduce your tax burden while staying within legal boundaries.

5. Managing Transfer Pricing

Businesses that deal with related parties must comply with transfer pricing rules. This includes keeping documentation (like master files and local files) and ensuring all intercompany transactions are at arm’s length. A tax accountant can guide you through this process and help avoid red flags during audits.

Key Responsibilities of Corporate Tax Accountants

Function	Description
Corporate Tax Registration	Preparing and submitting your business's registration with the FTA
Tax Return Filing	Compiling and submitting annual tax returns
Financial Analysis	Calculating taxable income based on adjusted profit figures
Documentation & Recordkeeping	Ensuring all records are audit-ready and maintained for at least 7 years
Exemption Evaluation	Identifying if your entity qualifies for exemptions or reliefs
Transfer Pricing Compliance	Preparing required documentation for related-party transactions
Advisory	Offering strategic insights on how to minimize tax exposure

 

Small Businesses and Corporate Tax: Why You Still Need an Accountant

Many small businesses assume they won’t need a corporate tax accountant if their income is below the AED 375,000 threshold. While they may not be liable to pay tax, they’re still required to:

• Register with the FTA

• Keep proper records

• Monitor income to know when they cross the taxable threshold

Corporate tax accountants help these businesses stay ready and avoid future complications as they grow.

What About Free Zone Companies?

Free zones were historically tax-free zones, but under the new rules, only Qualifying Free Zone Persons may still enjoy the 0% rate—but only on qualifying income and subject to strict conditions. Failure to meet those conditions could result in full 9% taxation.

A corporate tax accountant can:

• Review your eligibility for free zone benefits

• Classify your income correctly (qualifying vs. non-qualifying)

• Ensure your operations are structured to maintain compliance

Choosing the Right Corporate Tax Accountant

The demand for corporate tax services in the UAE has surged since the law’s introduction. But not all service providers are created equal. Here’s what to look for:

✅ Qualifications & Licensing

Ensure the accountant is certified (e.g., CPA, ACCA, UAE-registered tax agent) and has experience in corporate taxation.

✅ Familiarity with UAE Regulations

They should have deep knowledge of UAE corporate tax, FTA guidelines, and industry-specific compliance issues.

✅ Transfer Pricing Expertise

This is especially important if your business operates internationally or within a group structure.

✅ Strategic Mindset

Beyond compliance, a good accountant offers advice that adds real business value—cost-saving insights, tax relief opportunities, and improved internal processes.

Benefits of Hiring a Corporate Tax Accountant

• Avoid Penalties: Non-compliance can lead to heavy fines—from late registration to incorrect returns.

• Focus on Core Business: With tax matters off your plate, you can focus on growth and operations.

• Audit Readiness: Be prepared in case the FTA requests an audit or investigation.

• Tax Efficiency: Maximize deductions, utilize reliefs, and keep more of your earnings legally.

Conclusion

The UAE’s shift to a taxed business environment presents both challenges and opportunities. As businesses navigate this new landscape, the role of the corporate tax accountant is becoming not just necessary—but strategic. From compliance to planning, reporting to restructuring, these professionals ensure businesses stay within the law while operating efficiently.