Part 4 · The Corporate Tax desk · Chapter 9

Profit, bands and a free zone: Corporate Tax fundamentals

The 0%/9% bands, Free Zones, and Small Business Relief

Year-end season. Fatima hands you the Corporate Tax files. "This is where clients panic," she says. "Three rules: 0% up to AED 375,000, 9% above. Small Business Relief is a choice, not a gift. And free zones are not automatically tax-free."

Meera rings too: now that she earns well, does she need Corporate Tax as an individual?

Your mission

• Work out Corporate Tax by hand with the 0% and 9% bands.
• Decide when Small Business Relief can be elected.
• Explain when an individual has to register for Corporate Tax.

Rules settled in this chapter

• Does Meera need Corporate Tax?: A natural person registers for Corporate Tax when business turnover exceeds AED 1,000,000 in a calendar year. A company registers whatever its size.
• Small Business Relief, explained: Small Business Relief is an election for revenue up to AED 3,000,000. The business still registers and files a return.

The basic rate structure

• 0% up to AED 375,000, 9% above

Free Zones and Qualifying Free Zone Persons

• A separate 0% regime for qualifying income
• The de minimis rule

Small Business Relief

• An election, not an automatic exemption
• Who cannot elect it

Individuals and Corporate Tax

• When a natural person registers

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