UAE Corporate Tax Guide for IT Businesses
Everything IT companies and SaaS businesses need to know about the UAE's 9% corporate tax — who it applies to, key deadlines, and how to stay compliant.
What is UAE Corporate Tax?
The UAE introduced a federal Corporate Tax (CT) of 9% on business profits, effective for financial years starting on or after 1 June 2023. For IT companies and SaaS businesses operating in the UAE, understanding your obligations is essential.
Who Does It Apply To?
Corporate Tax applies to all businesses and individuals conducting business activities under a commercial licence in the UAE — including IT companies, software firms, and tech startups.
Key Thresholds
- 0% on taxable income up to AED 375,000
- 9% on taxable income above AED 375,000
- Small Business Relief is available for businesses with revenue under AED 3 million
What IT Companies Need to Know
SaaS Revenue — Revenue from software subscriptions is treated as regular business income and is subject to the standard 9% rate above the threshold.
Free Zone Companies — Qualifying Free Zone Persons can benefit from a 0% rate on qualifying income, provided they meet substance requirements.
Expenses — Most legitimate business expenses are deductible, including salaries, office costs, software licences, and marketing.
Key Deadlines
- Register with the FTA within the required timeframe after your financial year starts
- File your Corporate Tax return within 9 months of your financial year end
- Keep records for a minimum of 7 years
Next Steps
If you are an IT business unsure about your Corporate Tax position, we recommend getting a professional review of your setup. Khizr UAE specialises exclusively in tech and IT companies — book a free consultation to get started.
Disclaimer
The information in this article is for general informational purposes only and does not constitute financial, tax, or legal advice. Tax laws and regulations in the UAE are subject to change, and every business situation is unique. We strongly recommend consulting a qualified accounting professional before making any financial or business decisions. Khizr UAE accepts no liability for any loss or damage arising from reliance on the content of this article.
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