Quick answer
A corporate tax impact assessment reviews how UAE corporate tax affects a business before it files: estimated tax at 0% and 9%, reliefs such as Small Business Relief and the QFZP rate, transfer pricing exposure and record-keeping gaps. Companies in Abu Dhabi and Dubai use it before their first return or after a change in structure.
Key takeaways
- An impact assessment estimates your tax, reliefs and compliance gaps before you file.
- It compares Small Business Relief, QFZP and tax group options.
- It reviews transfer pricing, owner pay and related-party transactions.
- It checks whether your accounting system can support the return and e-invoicing.
- It ends with a report and action plan.
Table of contents
- What Is a Corporate Tax Impact Assessment?
- Why Do Businesses in Dubai and Abu Dhabi Need One?
- Our Approach to Corporate Tax Impact Assessment in the UAE
- What Do You Receive From the Assessment?
- Corporate Tax Impact Assessment in Abu Dhabi: What Makes It Different?
- Why Choose SGA World?
- Frequently asked questions
Corporate tax has applied to UAE businesses since financial years starting on or after 1 June 2023, but many companies still file without checking whether their structure, reliefs and records are right. A corporate tax impact assessment answers that before you file: how much tax you should pay, which options you have and what needs fixing.
Need an impact assessment done for your company? Our corporate tax consultants in Dubai and Abu Dhabi can prepare one for you.
What Is a Corporate Tax Impact Assessment?
A corporate tax impact assessment is a structured review of how the Corporate Tax Law applies to your business. It covers:
- your estimated taxable income and tax;
- the reliefs and regimes available to you;
- your group structure and related-party transactions;
- your accounting records and systems;
- your compliance deadlines and risks.
Why Do Businesses in Dubai and Abu Dhabi Need One?
| Situation | What the assessment answers |
|---|---|
| First corporate tax return | Is registration correct, and what is the estimated tax? |
| Free zone company | Can you rely on the 0% QFZP rate, and is the de minimis limit at risk? |
| Revenue around AED 3 million | Is Small Business Relief better than normal taxation, given any losses? |
| Group with several entities | Would a tax group or separate filing be better? |
| Payments to owners or related parties | Are salaries, fees and loans at market value and arm’s length? |
| Changing activities | Has a new activity changed your tax position? |
Our Approach to Corporate Tax Impact Assessment in the UAE
- Understand the business: licences, activities, customers, group structure and financial year.
- Review the numbers: latest financial statements and management accounts.
- Estimate taxable income: apply adjustments, exempt income and the 0% and 9% rates.
- Compare options: Small Business Relief, QFZP, tax group and other reliefs.
- Test transfer pricing: related-party and connected-person transactions, including owner pay.
- Check systems: whether your accounting records can support the return, audit and e-invoicing from 2027.
- Report and plan: a written report with estimated tax, risks and a prioritised action plan.
What Do You Receive From the Assessment?
| Deliverable | What it gives you |
|---|---|
| Tax estimate | Expected taxable income and tax for the current period |
| Options comparison | SBR, QFZP and tax group outcomes side by side |
| Risk register | Issues such as de minimis exposure, missing documentation or non-deductible costs |
| Transfer pricing review | Related-party transactions needing benchmarking or documentation |
| Action plan | What to fix, by when, and who is responsible |
Expert tip: run the assessment before the financial year ends where possible. Some decisions, such as owner pay, intercompany charges and QFZP revenue mix, can still be changed during the year but not after.
Corporate Tax Impact Assessment in Abu Dhabi: What Makes It Different?
The corporate tax rules are federal, so they are the same in Abu Dhabi as in Dubai. What often differs is the business profile:
- ADGM companies with their own filing rules and possible audit exemptions;
- KEZAD and other industrial free zone companies relying on QFZP status;
- suppliers to government and ADNOC group companies, where audited accounts also drive ICV certificates.
Why Choose SGA World?
SGA World combines audit, accounting, corporate tax and transfer pricing in one team, with offices in Dubai and Abu Dhabi. We base the assessment on your actual numbers and finish with clear actions. See our corporate tax impact assessment service to get started.
Corporate Tax Impact Assessment in UAE – FAQs
01.What is a corporate tax impact assessment?
A review of how UAE corporate tax affects your business: estimated tax, available reliefs, structure, transfer pricing, systems and compliance, with a report of recommended actions.
02.Who needs a corporate tax impact assessment?
Any UAE business that has not yet filed a corporate tax return, groups with several entities, free zone companies relying on 0%, and businesses whose activities or structure have changed.
03.Is it still useful after the first return?
Yes. Rules change, such as the Small Business Relief extension to 2029, new QFZP activity rules and e-invoicing, and so do businesses. A periodic review keeps the position up to date.
04.How long does an assessment take?
It depends on the size and complexity of the business and the quality of records. A single-entity SME assessment is usually much quicker than a group review.
05.What do I receive at the end?
A written report with your estimated tax, the options available, risks found and a prioritised action plan.
