UAE Corporate Tax (9% on taxable profits above AED 375,000) is now in full effect. All UAE businesses, including free zone entities, must register, calculate taxable income, file annually, and maintain proper books. Zoho Books has UAE Corporate Tax features built-in, but proper setup separates compliance from chaos. Here's the complete guide.
UAE Corporate Tax basics every business should know
Tax rate: 0% on first AED 375,000 of taxable income, 9% above. Free zone entities can qualify for 0% rate on Qualifying Income via QFZP status, strict conditions. Small Business Relief: businesses with revenue under AED 3M can elect 0% rate (one-time election, valid until 2026). Tax Registration Number (TRN-CT) is mandatory before first tax period. Returns due 9 months after tax period end.
Configure Zoho Books for UAE Corporate Tax
Settings → UAE Compliance → enable Corporate Tax. Enter your TRN-CT (15 digits). Set fiscal year (calendar year for most). Configure Chart of Accounts to align with Corporate Tax categories (taxable revenue, exempt income, deductible expenses, non-deductible). Enable depreciation tracking per UAE FTA-approved methods. Set up small business relief flag if you qualify.
Annual filing workflow in Zoho Books
Year-end + 9 months: deadline. Month 11: Zoho generates Corporate Tax computation report, taxable income, allowable deductions, exempt income. Review with your accountant. Month 12: export FTA-compatible XML or use online filing on EmaraTax portal. Pay any tax due via FTA's e-services. Maintain audit trail in Zoho for 7 years (FTA requirement).
Frequently Asked Questions
Are free zone businesses subject to UAE Corporate Tax?
Can Zoho Books generate UAE Corporate Tax returns?
What's the deadline for UAE Corporate Tax filing?
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