UAE Corporate Tax Update

"If you are still treating the UAE as a zero-tax playground, 2025 will be your wake-up call."

The UAE's new corporate tax regime is more than a policy change; it is a complete restructuring of how international businesses must operate in the region. With the introduction of the 9 percent corporate tax, the Emirates is asserting itself as a mature, transparent, and globally compliant jurisdiction. The rate remains competitive, but the requirements have become undeniably stricter: compliance, reporting, record-keeping, and economic substance.

Key considerations for 2025

• Free zone relief is conditional. Not every free zone company qualifies, and abuse can lead to full corporate tax liability.
• Transfer pricing rules apply. Related-party transactions must now be defensible and properly documented.
• Multinationals must align with OECD standards. The UAE is integrating into global tax frameworks, not sitting outside them.
• Corporate tax registration is mandatory - even if your business qualifies for 0 percent.

For global founders, consultants, and SMEs, the message is clear: the UAE is still one of the world's most attractive business hubs - it is simply no longer the set-and-forget jurisdiction it once was. 2025 rewards those who are prepared, structured, and compliant. The others are playing catch-up.

Contact our Tax Structuring team to ensure your Middle East platform is future-ready.