Corporate Tax Assessment

Is your business calculating UAE Corporate Tax correctly, or are there adjustments, reliefs, or related-party transactions that could change your final tax position?

Our Corporate Tax Assessment Services in the UAE help businesses review their financial information, identify relevant Corporate Tax adjustments, and determine a more accurate taxable-income position before filing.

A proper Corporate Tax assessment goes beyond applying a tax rate to accounting profit. It considers how UAE Corporate Tax legislation affects income, expenses, related-party transactions, Free Zone activities, tax losses, exemptions, reliefs, and other adjustments.

Eighty20 Business and Financial Solutions helps businesses build a clearer Corporate Tax position before the annual return is prepared.

What Is a Corporate Tax Assessment in the UAE?

A Corporate Tax assessment is a structured review of a business’s financial and tax information to determine how much income may be subject to UAE Corporate Tax.

The process generally starts with the company’s accounting net profit or loss.

That accounting result is then adjusted according to UAE Corporate Tax legislation.

The Federal Tax Authority explains that these adjustments can include:

• Unrealised gains and losses, depending on the applicable election
• Exempt income
• Intra-group transfers
• Expenses that are not deductible for Corporate Tax purposes
• Related Party and Connected Person transactions
• Tax losses
• Incentives and tax reliefs
• Other adjustments required under the Corporate Tax rules

A Corporate Tax assessment therefore helps answer a more useful question than simply:

“What is our accounting profit?”

It helps determine:

“What is our Taxable Income after the UAE Corporate Tax rules have been applied?”

How Is UAE Corporate Tax Calculated?

Under the general UAE Corporate Tax regime:

• Taxable income up to AED 375,000 is generally subject to a 0% Corporate Tax rate.
• Taxable income above AED 375,000 is generally subject to a 9% Corporate Tax.

A simplified calculation can be represented as:

Accounting Net Profit or Loss

± Corporate Tax Adjustments

= Taxable Income

The applicable Corporate Tax rate is then applied to that Taxable Income.

However, the actual assessment can be more complex depending on:

• Free Zone status
• Exempt income
• Tax losses
• Related-party transactions
• Group transactions
• International operations
• Tax reliefs
• Foreign tax credits
• Business restructuring

Why Is Corporate Tax Assessment Important?

Understanding the expected tax position before the filing deadline helps management with corporate tax planning UAE, including Corporate Tax payments, cash flow, tax provisions, business restructuring, group transactions, and future budgets.

It Identifies Tax Adjustments

Not every accounting expense is automatically deductible for Corporate Tax purposes.

Likewise, some accounting income may qualify for exemption or different treatment.

A tax assessment reviews these differences before the Corporate Tax return is prepared.

It Helps Prevent Filing Errors

Incorrect treatment of expenses, related-party payments, or Free Zone income can affect taxable income and potentially lead to inaccurate tax returns.

It Improves Tax Planning

Understanding the expected tax position before the filing deadline helps management plan:

• Corporate Tax payments
• Cash flow
• Tax provisions
• Business restructuring
• Group transactions
• Future budgets

It Creates Better Documentation

A structured assessment provides clearer supporting schedules behind the figures included in the tax return.

Who Should Get a Corporate Tax Assessment?

A corporate tax assessment can be useful for many UAE businesses, particularly where tax treatment is not straightforward.

Mainland Companies

Mainland businesses subject to the standard UAE Corporate Tax regime can use an assessment to review accounting profit and identify required tax adjustments.

Free Zone Companies

Free Zone businesses require particular attention because being established in a Free Zone does not automatically mean all income is taxed at 0%.

A Qualifying Free Zone Person can benefit from:

• 0% Corporate Tax on Qualifying Income
• 9% Corporate Tax on Taxable Income that is not Qualifying Income

Companies With Related-Party Transactions

Businesses that transact with shareholders, group companies, subsidiaries or other Related Parties should assess whether UAE transfer-pricing rules affect the transaction.

Growing SMEs

As revenue, expenses and employee numbers increase, the Corporate Tax calculation usually becomes more complex.

Businesses Preparing Their First Corporate Tax Return

A first-year assessment can help establish a reliable process that can be repeated in future Tax Periods.

Groups and Multi-Entity Businesses

Groups may need additional analysis around:

• Related-party transactions
• Tax Groups
• Intra-group transfers
• Tax losses
• Group relief
• Financing
• Intercompany charges

What Do We Review During a Corporate Tax Assessment?

Our Corporate Tax Assessment Services UAE can cover the following areas depending on the business.

Financial Statements and Trial Balance

We review the financial information used as the starting point for the Corporate Tax calculation.

This can include:

• Income statement
• Balance sheet
• Trial balance
• General ledger
• Supporting schedules

The aim is to understand whether the financial information used for tax assessment appears complete and internally consistent.

Revenue

We review significant revenue streams and how they have been recognised in the financial statements.

This can help identify:

• Exempt income considerations
• Foreign income
• Free Zone income
• Intercompany revenue
• Unusual income
• Non-operating income

Business Expenses

Expenses are reviewed to determine whether any items may require Corporate Tax adjustments.

Depending on the business, this could include:

• Entertainment expenses
• Interest expenses
• Related-party payments
• Fines and penalties
• Donations
• Employee costs
• Provisions
• Capital expenditure
• Personal or non-business expenditure

The tax treatment should always be determined according to the applicable Corporate Tax provisions.

Fixed Assets and Depreciation

We assess whether fixed asset information is consistent with the accounting records and whether relevant tax considerations have been identified.

Related Parties and Connected Persons

Transactions with Related Parties and Connected Persons are particularly important under UAE Corporate Tax.

The FTA requires these transactions to follow the arm’s-length principle, meaning the terms should reflect what independent parties would reasonably agree under comparable circumstances.

The rules apply to both:

• Domestic related-party transactions
• Cross-border related-party transactions

Examples may include:

• Management fees
• Shareholder payments
• Group services
• Intercompany loans
• Royalties
• Purchases and sales
• Asset transfers

Tax Losses

Eligible Tax Losses may be available for use against future Taxable Income, subject to the relevant conditions and restrictions.

An assessment should therefore review whether tax losses have been:

• Identified
• Calculated correctly
• Properly documented
• Carried forward appropriately

Exempt Income

Certain income may qualify for exemption from Corporate Tax where the relevant conditions are met.

Potential examples can include certain dividends or participation income.

The Corporate Tax assessment should distinguish exempt income from ordinary taxable business income.

Free Zone Income

For Free Zone businesses, we assess whether income appears to fall into:

• Qualifying Income
• Non-Qualifying Income
• Excluded Activities
• Other relevant categories

This distinction can materially affect the Corporate Tax rate.

Tax Reliefs

The assessment also considers whether the business may qualify for available Corporate Tax reliefs.

These can include, where applicable:

• Small Business Relief
• Business Restructuring Relief
• Qualifying Group Relief
• Tax-loss provisions
• Other available reliefs

Eligibility should be tested before a relief is claimed.

What Is Small Business Relief in the UAE in 2026?

Small Business Relief remains particularly relevant for smaller UAE businesses. Businesses may use a tax health check UAE company to assess whether the applicable revenue threshold and eligibility conditions are met before making the election.

In August 2026, the Ministry of Finance extended the relief so that eligible Taxable Persons may claim it for Tax Periods ending on or before 31 December 2029. The AED 3 million revenue threshold continues to apply, making small business relief corporate tax UAE relevant for eligible Resident Persons that satisfy the applicable conditions.

Qualifying Free Zone Persons and certain multinational-group members are excluded from Small Business Relief.

Small Business Relief should not simply be assumed because revenue is below AED 3 million.

Eligibility should be assessed before the election is made.

Corporate Tax Assessment for Free Zone Companies

Free Zone Corporate Tax treatment is one of the areas where businesses can make costly assumptions. A corporate tax exemption UAE free zone should never be assumed simply because the company holds a Free Zone licence; the entity must satisfy the applicable Qualifying Free Zone Person requirements.

The tax treatment is generally:

Income Category	General QFZP Treatment
Qualifying Income	0%
Taxable Income that is not Qualifying Income	9%

The Corporate Tax assessment may review:

• Qualifying Activities
• Excluded Activities
• Related-party transactions
• Substance requirements
• Transfer-pricing compliance
• Revenue composition
• De minimis requirements
• Financial statements

The current Free Zone framework also includes a de minimis test for non-qualifying revenue, based on the lower of 5% of total revenue or AED 5 million, subject to the detailed rules.

How Does Transfer Pricing Affect a Corporate Tax Assessment?

Transfer pricing is part of the UAE Corporate Tax framework and can materially affect taxable income.

The core principle is that transactions with Related Parties and Connected Persons should be priced on an arm’s-length basis.

During the assessment, we may review:

• Who the Related Parties are
• Types of transactions
• Pricing methods
• Intercompany agreements
• Management charges
• Loans and financing
• Royalties
• Asset transfers
• Supporting documentation

Certain businesses may also need to maintain additional transfer-pricing documentation such as a Master File or Local File.

The FTA also requires businesses generally to retain information about Related Party and Connected Person transactions.

How Long Should Corporate Tax Records Be Kept?

For UAE Corporate Tax purposes, relevant records and supporting documents should generally be retained for at least seven years following the end of the relevant Tax Period.

This can include:

• Financial statements
• General ledgers
• Invoices
• Contracts
• Tax calculations
• Related-party information
• Supporting schedules
• Bank records
• Evidence supporting reliefs
• Tax-loss records

Maintaining good documentation makes the Corporate Tax assessment and future FTA reviews easier to support.

Our Corporate Tax Assessment Process

Step 1: Understand Your Tax Profile

We first review:

• Legal structure
• Business activities
• Mainland or Free Zone status
• Ownership structure
• Financial year
• Group companies
• Tax registrations

Step 2: Review Accounting Information

We assess the following:

• Financial statements
• Trial balance
• General ledger
• Supporting schedules

Step 3: Identify Tax Adjustments

We analyse the accounting results for adjustments that may be required under the UAE Corporate Tax framework.

Step 4: Review Related-Party Transactions

Related Party and Connected Person transactions are identified and reviewed where relevant.

Step 5: Assess Available Reliefs

We consider whether the business appears eligible for relevant reliefs or exemptions.

Step 6: Review Free Zone Position

Where the company operates in a Free Zone, the Qualifying Free Zone Person position and income categories can be reviewed.

Step 7: Calculate Taxable Income

Accounting profit or loss is adjusted to determine the estimated Taxable Income.

Step 8: Calculate Corporate Tax Liability

The applicable Corporate Tax rates are applied based on the taxpayer’s circumstances.

Step 9: Prepare the Assessment Summary

Management receives a structured summary of the tax position, adjustments, and key areas requiring attention.

Step 10: Prepare for Filing

Where return preparation is included in the engagement, the assessment can then support the Corporate Tax filing process.

What Do You Receive from a Corporate Tax Assessment?

Depending on the agreed scope, the assessment may include Corporate Tax calculations, tax adjustment schedules, tax risk summaries, related-party reviews, relief assessments, Free Zone reviews, tax-loss schedules and compliance checklists. The corporate tax assessment services cost UAE will generally depend on business size, transaction complexity, Free Zone status, related-party activity and the depth of review required.

Deliverable	Purpose
Corporate Tax Calculation	Shows estimated Taxable Income and Corporate Tax liability
Tax Adjustment Schedule	Shows adjustments from accounting profit to Taxable Income
Tax Risk Summary	Identifies areas requiring additional attention
Related-Party Review	Highlights relevant Related Party and Connected Person transactions
Relief Assessment	Reviews potentially applicable Corporate Tax reliefs
Free Zone Review	Assesses relevant QFZP considerations
Tax-Loss Schedule	Tracks eligible Tax Losses
Compliance Checklist	Highlights documentation and filing requirements
Management Summary	Explains the main Corporate Tax position in clear terms

Corporate Tax Assessment vs Corporate Tax Return Filing

These services are connected but are not identical.

Area	Corporate Tax Assessment	Corporate Tax Return Filing
Main purpose	Determine the tax position	Submit the required return to the FTA
Financial review	Detailed	Relies on approved tax calculation
Tax adjustments	Identified and calculated	Reported in the return
Related-party review	Can be included	Relevant disclosures are filed where required
Relief assessment	Determines eligibility	Relevant elections/disclosures are reflected
Tax calculation	Prepared	Final figures reported
FTA submission	Not necessarily included	Yes
Best timing	Before filing	After the tax position is finalised

A strong filing process normally starts with a proper Corporate Tax assessment.

When Is the UAE Corporate Tax Return Due?

Taxable Persons generally need to file their Corporate Tax return and pay any Corporate Tax due within nine months from the end of the relevant Tax Period.

The FTA reaffirmed this requirement in September 2026.

For businesses with a financial year ending 31 December 2025, the return and Corporate Tax payments are generally due by the end of September 2026.

Eligible businesses claiming Small Business Relief must still submit their simplified return within the applicable statutory timeframe.

What Happens During an FTA Tax Assessment or Review?

Businesses should distinguish between:

a company’s internal Corporate Tax assessment, which calculates and reviews its tax position, and

an assessment or decision issued by the Federal Tax Authority.

If the FTA reviews a Corporate Tax position, businesses may need to provide supporting accounting and tax records.

Potential support may include:

• Reviewing the FTA request
• Reconciling the Corporate Tax calculation
• Gathering supporting records
• Preparing technical explanations
• Reviewing related-party documentation
• Supporting management responses

What If You Disagree With an FTA Decision?

The UAE has formal tax-dispute procedures.

A person seeking reconsideration of an FTA decision generally must submit a Reconsideration Request within 40 business days from the original FTA decision, subject to the applicable Tax Procedures rules.

A reconsideration decision may subsequently be disputed before the Tax Dispute Resolution Committee where the applicable requirements are met.

Businesses facing a material dispute should obtain appropriate tax and legal advice based on their specific circumstances.

Why Choose a Structured Corporate Tax Assessment?

More Accurate Tax Calculations

The process looks beyond headline accounting profit and considers relevant Corporate Tax adjustments.

Better Tax Visibility

Management can understand the expected Corporate Tax liability before the payment deadline.

Stronger Documentation

Tax calculations supported by schedules and records are easier to explain and review.

Early Risk Identification

Potential issues can be identified before the return is submitted.

Better Decision-Making

Management can understand how tax affects cash flow, transactions, and future planning.

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