| Period | Income | Tax | Status |
|---|---|---|---|
| Mar 2023 – Feb 2024 | 512.4 | 45.1 | Filed |
| Mar 2021 – Feb 2022 | 398.2 | 31.1 | Filed |
| Mar 2020 – Feb 2021 | 210.5 | 18.2 | Filed |
Tax brackets
Monitor compliance with real-time updates and automated validation checks.
Stay updated with latest UAE corporate tax regulations and compliance requirements.
Get proactive alerts about potential compliance risks and required actions.
Securely store records for the prescribed retention period as per law.
How it works
Features
LEDGERS helps you track taxable income, compute adjustments, apply exemptions, and prepare your corporate tax return. It integrates with your existing accounting data so there is no duplicate entry – revenue, expenses, and adjustments flow into the tax computation automatically.
UAE Corporate Tax applies at 0% on taxable income up to AED 375,000 and 9% on income above that threshold. Qualifying Free Zone businesses may benefit from a 0% rate on qualifying income. LEDGERS applies the correct rate bracket based on your entity type and computed taxable income.
Yes. LEDGERS identifies whether your entity qualifies for Free Zone tax benefits, tracks qualifying vs non-qualifying income separately, and applies the correct tax treatment. It also monitors the conditions that must be met to maintain the 0% rate.
Yes. LEDGERS handles adjustments to accounting profit – adding back non-deductible expenses (fines, donations above limits, entertainment), applying depreciation adjustments, and handling carried-forward losses. The adjustment schedule is automatically populated.
LEDGERS helps you identify related-party transactions and document them at arm’s length prices. It generates the required disclosure schedule and maintains records of the pricing methodology used for each related-party arrangement.
If your revenue is below AED 3 million, you may elect Small Business Relief where taxable income is treated as zero. LEDGERS monitors your revenue threshold and notifies you if you approach or exceed the limit during the tax period.
The UAE introduced a federal Corporate Tax effective for financial years starting on or after 1 June 2023. It applies to all UAE businesses and commercial activities at a standard rate of 9% on taxable income exceeding AED 375,000. It aims to align with international tax standards while keeping the UAE competitive.
All UAE-incorporated companies and branches, foreign entities with a permanent establishment in the UAE, and individuals conducting business exceeding AED 1 million in turnover are subject to Corporate Tax. Government entities, qualifying public benefit organisations, and certain investment funds may be exempt.
Businesses with revenue of AED 3 million or less in a tax period can elect Small Business Relief. This treats their taxable income as zero, meaning no corporate tax is payable. The relief is available until 31 December 2026 and is subject to conditions.
Taxable income starts with the accounting profit per financial statements prepared under IFRS or applicable standards. Adjustments are then made – adding back non-deductible expenses, deducting exempt income, applying interest limitation rules, and accounting for tax losses carried forward.
Corporate Tax returns must be filed within 9 months from the end of the relevant tax period. For example, a business with a December year-end must file by 30 September of the following year. LEDGERS tracks your tax period and filing deadline automatically.
Penalties include AED 10,000 for late registration, AED 500 per month for late filing (up to AED 15,000), and percentage-based penalties for incorrect returns or late payment. LEDGERS helps you avoid these through automated reminders and validation checks.
Register your business entity in LEDGERS with your tax registration details, entity type (mainland, Free Zone, branch), and financial year. LEDGERS configures the correct tax treatment based on your entity classification.
Map your chart of accounts to corporate tax categories. LEDGERS identifies revenue, deductible expenses, non-deductible items, and exempt income streams so the tax computation pulls from the correct accounts.
Record all business transactions throughout the year. LEDGERS automatically classifies items for tax purposes - flagging entertainment expenses, related-party transactions, and items requiring special treatment.
At period end, LEDGERS generates the tax computation - starting from accounting profit, applying all required adjustments, deducting losses brought forward, and calculating tax at the applicable rate (0% up to AED 375K, 9% above).
Review the completed tax return, verify the computation, and prepare for filing with the FTA. LEDGERS archives the return with all supporting schedules for your records and any future audit requirements.
