- Mainland LLCs in Dubai are generally subject to UAE federal corporate tax on taxable profits; the standard federal rate is 9% for taxable profits above AED 375,000, while certain qualifying free zone persons may still benefit from a 0% rate subject to strict conditions.
- Free zone exceptions: Free zone entities that meet qualifying conditions and comply with economic substance and other requirements can retain preferential 0% treatment for qualifying income.
- Large multinational rule: A 15% Domestic Minimum Top-Up Tax applies for very large multinational enterprises meeting the EUR 750 million threshold, affecting groups that previously used low-tax structures.
- Compliance actions for LLCs: Register with the Federal Tax Authority, keep audited financials, apply transfer pricing and documentation rules, and file annual corporate tax returns to avoid penalties.
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