Does every company have to register for UAE corporate tax?

Every company with taxable activities must register and file returns, unless it qualifies for an exemption.

Is earning a profit required to be called a business?

No, even without a profit, your work can count as a business if it’s organized and continuous.

Do salaries and investment income count as business activity?

For natural persons, salaries and passive investment income usually don’t count as business activities under the law.

What if I only sell something once? Is it a business activity?

Yes, even one organized, value-driven transaction may count as a business activity.

Who can help me understand UAE business tax rules?

Mubarak Al Ketbi (MAK) Auditing gives expert guidance on all corporate tax issues in the UAE.

Business & Business Activity in UAE CT Law

Defining Business in UAE Corporate Tax Law

The UAE started its new corporate tax law in 2023. Many people and companies must now follow these rules. Mubarak Al Ketbi (MAK) Auditing always helps clients understand business terms under this law. A business means any kind of economic activity, either for a long time or a short time, done by a person or a company.

You don’t need to earn profit for your activity to count as a business. Even if you don’t make money, you can still run a business if your work is organized. Companies need to review everything they do or own to see if the law treats it as a business.

Examples of what counts as a business:

Trading goods or services (retail, wholesale, or online)
Manufacturing or making goods from parts or materials
Providing professional services (like accounting, law, engineering, or advertising)
Owning or managing assets (like renting property, investing in shares, or licensing intellectual property)

Even if your main goal isn’t profit, the law may still see your activity as a business.

What Is Business Activity?

A business activity means anything you do as part of running your business. You don’t need to work every day. Even if you do something once, it can count as a business activity.

The law checks if your activity creates value and is organized. If you’re just doing something personal, it usually isn’t a business activity. Companies must check if every action they take is a business activity.

Some examples include:

Signing contracts to sell or buy goods or services
Making or getting goods for your business
Doing marketing or advertising for your products
Handling money (raising capital, investing, or managing costs)
Hiring, training, or paying workers

Almost every action of a company is a business activity unless proven otherwise.

Business and Business Activity for Natural Persons

The law says a “business” is anything that makes income. This applies to both people and companies. But the law gives some exceptions for natural persons.

Income that does NOT count as business activity for a person:

Salaries or wages from a job
Personal investment income (dividends, interest, profit from stocks or bonds)
Income from renting property for investment (unless you develop or manage property as a business)

Even if you earn money from these, you might not need to pay corporate tax if you’re not running a business.

What Businesses Need to Know for Compliance

Companies in the UAE should understand what counts as a business or business activity. This helps them know if they must register for tax and file returns.

Main points to consider:

Register for corporate tax if you do taxable activities.
File annual tax returns on time.
Check if your business can get exemptions or deductions.
Learn the law for your type of activity (retail, free zone, charity, etc.)

If you’re not sure, ask Mubarak Al Ketbi (MAK) Auditing for help with compliance.

When to Seek Professional Help

Understanding tax law in the UAE can be tricky. Mubarak Al Ketbi (MAK) Auditing has a team ready to guide you. You should get help if you want to:

Know which of your activities count as business
Find out when to register and file for corporate tax
Claim every possible deduction or exemption
Structure your business to get better tax results
Respond to tax questions or audits from the government

Our experts always try to give clear answers and support you with UAE rules.

How Mubarak Al Ketbi (MAK) Auditing Can Help You

Navigating the business tax law in the UAE can feel like finding a needle in a haystack! Mubarak Al Ketbi (MAK) Auditing stands ready to help at every step.

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