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UAE Corporate Tax Fundamentals/CT Foundations & Legal Framework
3 min

Key Definitions & Concepts

Essential terminology used throughout the Corporate Tax law.

Key Definitions

  • Taxable Person: A person subject to Corporate Tax
  • Taxable Income: The income determined for a tax period after allowable deductions
  • Accounting Profit: Net profit per financial statements (IFRS)
  • Taxable Profit: Accounting profit adjusted for tax purposes
  • Permanent Establishment: A fixed place of business through which business is conducted
  • Related Party: A person connected through ownership, control, or family
  • Connected Person: A related party or a person who can influence or be influenced
  • Qualifying Free Zone Person: A Free Zone entity meeting specific conditions for 0% rate

Tax Periods

Tax periods are the financial year of the business. The default is the calendar year, but businesses may use a different 12-month period aligned with their financial year.

Key takeaways

  • Taxable income differs from accounting profit due to adjustments
  • Permanent establishment determines non-resident taxation
  • Qualifying Free Zone Persons enjoy a 0% rate

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This lesson is general educational content, not individualized tax or legal advice. Always consult a qualified professional for your specific situation.