Corporate Tax Services for
IT Companies in the UAE
UAE Corporate Tax registration, 0% Free Zone planning, Small Business Relief, and accurate FTA filing — handled by a qualified ACA accountant who understands how software and IT services businesses actually make money.
Who we help
Understanding UAE Corporate Tax for software & IT services businesses
The UAE introduced Corporate Tax for financial years starting on or after 1 June 2023. The standard rate is 9% on taxable income above AED 375,000, and 0% on income below that threshold. For Free Zone technology companies, a 0% rate on qualifying income is available to those that meet the Qualifying Free Zone Person (QFZP) conditions. The rules are new, detailed, and easy to get wrong — which is exactly where specialist help pays for itself.
Do you need to register? (Almost certainly, yes)
Every UAE business — Mainland and Free Zone — must register for Corporate Tax with the FTA, whether or not it owes any tax. Registration deadlines are set according to your licence issuance month, and late registration carries a fixed AED 10,000 penalty. We confirm your exact deadline and complete your EmaraTax registration correctly, so compliance is never a surprise. See who must register and when →
The 0% rate for Free Zone software & IT services businesses
A Free Zone IT company can pay 0% on its qualifying income — but only as a Qualifying Free Zone Person. That means maintaining genuine economic substance in the UAE, earning income from permitted (qualifying) activities, staying within the de minimis limit for non-qualifying income, meeting transfer-pricing rules, and preparing audited financial statements. We assess your eligibility, help structure your activities to protect qualifying income, and prepare the documentation needed to claim and keep the 0% rate. How to qualify for 0% →
Small Business Relief — don't leave it on the table
If your revenue is at or below AED 3,000,000, you can elect Small Business Relief, which treats your taxable income as zero for that period. It is not automatic — it must be actively elected on your Corporate Tax return. Note that SBR is only available for tax periods ending on or before 31 December 2026, so if you have been relying on it, your FY2027 position needs planning now. We assess your eligibility, make the election as part of your annual filing, and model what happens when the relief ends. More on Small Business Relief →
Deductions most software & IT services businesses miss
Your taxable income is your profit after allowable expenses — and technology businesses have plenty: cloud hosting and software subscriptions, contractor and freelancer payments, salaries, cybersecurity tooling, marketing, and professional fees. The guiding rule is that an expense is deductible as long as it is incurred wholly and exclusively for the business. The difference between an overpaid tax bill and an optimised one usually comes down to correct categorisation and documentation. IT expense deductions explained →
How we work
Assess
We review your licence, structure, activities and revenue to pinpoint your registration deadline, whether you can claim 0%, and whether Small Business Relief applies.
Register
We complete your Corporate Tax registration on the FTA's EmaraTax portal correctly and on time — avoiding the AED 10,000 late-registration penalty.
Review
We make sure your income and expenses are correctly categorised and documented — so your return is accurate, every allowable expense is captured, and any Free Zone qualifying income is properly supported.
File & comply
We prepare your financial statements, coordinate any required audit, and file an accurate return — then keep you compliant year-round.
What our Corporate Tax service includes
Corporate Tax FAQs
Do Free Zone companies have to pay UAE Corporate Tax?
Every Free Zone company must register for Corporate Tax — but a Qualifying Free Zone Person (QFZP) can pay 0% on its qualifying income. Qualifying for 0% is not automatic: you must meet strict conditions (genuine substance, qualifying income, the de minimis limit, transfer-pricing compliance and audited accounts). We assess your eligibility and help you keep it.
When do I have to register for Corporate Tax?
Registration is mandatory for all UAE businesses, even if you expect to owe nothing. The FTA sets deadlines based on your licence issuance month, and new companies generally must register within a few months of incorporation. Miss it and there is an AED 10,000 penalty — so we confirm your exact deadline up front.
Can my IT company genuinely pay 0% Corporate Tax?
Often yes — if you're a Free Zone company meeting the QFZP conditions, or your taxable income is under AED 375,000, or you qualify for Small Business Relief. But it requires deliberate planning and clean records. We map the correct, fully compliant route for your specific setup.
What is Small Business Relief and do I qualify?
If your revenue is at or below AED 3,000,000, you can elect Small Business Relief, which treats your taxable income as zero for that period. It must be actively elected on your return — it is never applied automatically. Important: SBR only applies to tax periods ending on or before 31 December 2026, after which it is no longer available. We check your eligibility, make the election as part of your filing, and plan for the year the relief ends.
Do I need audited financial statements?
Free Zone companies claiming the 0% QFZP rate are required to maintain audited financial statements, and many businesses need them for other reasons too. We prepare your accounts and coordinate the independent audit where it's required.
What can an IT or SaaS business deduct?
Any expense incurred wholly and exclusively for the business reduces your taxable income — cloud and software subscriptions, hosting, contractor and freelancer payments, salaries, cybersecurity tools, marketing and professional fees, among others. The key is that it is genuinely for the business, correctly categorised and documented — which is exactly what we handle.
I think I've already missed a deadline — what now?
Don't ignore it. A voluntary disclosure to the FTA, handled properly, is far better than waiting to be found. We prepare and submit voluntary disclosures and manage the correspondence with the authority on your behalf.
Disclaimer
The information on this page is general guidance only and does not constitute financial, tax, or legal advice. UAE tax laws and Free Zone regulations change, and every business situation is different. Please consult a qualified professional — such as Khizr UAE — before making any financial or business decision. Khizr UAE accepts no liability for any loss or damage arising from reliance on the content of this page.
Get your UAE Corporate Tax right.
Book a free consultation with Sadik Panjwani, ACA, to review your Corporate Tax position — registration, whether you qualify for the 0% rate, and getting your filing accurate and compliant.
Related Services