What if An Individual Has Multiple Business Activities That Are in The Scope of UAE CT?

The UAE is a business-friendly hub owing to its advantageous location that connects the East with the West. And so, running multiple businesses in the country is exciting—until tax season rolls around. Since managing taxes can sometimes feel like solving out a complicated puzzle, a question that may occupy your mind when your business operations expand into other sectors is- 

What happens if the new UAE Corporate Tax (CT) framework applies to all of my commercial operations?

Here’s the good news - the UAE’s corporate tax regime is designed to simplify compliance, even for entrepreneurs with diverse income streams. This means that if the individual owns each business separately, they might be treated as distinct entities, each potentially needing to comply with CT individually. However, if all the ventures are operated under a single legal entity or affiliate structure, then the entity’s total income and profits from all activities could be aggregated for tax purposes.

Thus, the Federal Tax Authority (FTA) will allow businesses to register under a single Tax Registration Number (TRN) for all qualifying activities. So, instead of filing separate returns for each business, the owner can consolidate them—saving time and reducing complexity.

Who is in the Spotlight of the UAE Corporate Tax?

Corporate Tax in UAE applies to all businesses and individuals conducting business activities under a commercial licence. This includes:

• Mainland businesses across every sector
• Free Zone companies that do not fall within special exemptions
• Individuals or sole proprietors running income-generating activities under a license

If you operate several businesses across various fields—say consulting, retail, and IT services—each of these activities is considered when assessing your corporate tax status. If your combined activities generate taxable profits, then all these activities are subject to corporate tax. There is no “splitting” or separating multiple businesses if they operate under the same legal entity or trade license.

Here's an example: Your consulting firm makes AED 100,000 and your e-commerce business makes AED 200,000. Then, you would not be required to pay corporate tax on your total taxable profit - AED 300,000 because it is less than the AED 375,000 threshold. This is a major benefit that promotes the expansion of diverse businesses.

Similarly, if your e-commerce business brings in AED 600,000 annually and your consultancy earns AED 500,000, your combined turnover is AED 1.1 million. Since this sum crosses the threshold of AED 1 million, your taxable income would then be calculated based on your aggregate profits from both these activities. In this case, you only have to file one tax return and manage one CT registration, which makes things easier.

Key Considerations for Staying Compliant when Juggling Multiple Businesses In UAE

• Handling multiple activities involves planning, so review the legal structure of all your businesses - are they separate companies, branches, or a single entity. Each scenario has different tax implications.

• Always keep accurate financial records for each of your business activities. Separate books of accounts and records will make it easier to determine income and expenses for each business activity.

• If your multiple businesses interact with each other or with other related entities, you must ensure that these transactions are conducted at "arm's length".

• Pay attention to all tax-related guidelines set forth by the FTA. Understanding how the laws are changing will help you avoid surprises.

• Collaborate with tax experts who understand UAE corporate tax regulations, such as CDA.

The UAE’s tax system supports entrepreneurs—whether you have one business or five. The key is to plan ahead. Since late registration, inaccurate filings, and failure to disclose related-party transactions are punishable under UAE corporate tax law. So, thinking ahead about how your multiple businesses are taxed can save you money and prevent compliance issues.

Sort Corporate Tax Complexities With CDA

CDA’s professional tax team has been providing premium tax services to its client around UAE. The experts of CDA are well-equipped with the prevailing tax regimes in UAE and hence is always ready to provide custom tailored tax services to the clients as per the requirements. For the businesses in UAE understanding the tax regulations and staying compliant to these is very crucial. The CDA’s tax services would enable the businesses to ensure compliance and also to stay transparent to the stakeholders whereby improving the goodwill of the businesses.

To know more about the CT services, connect our team now

Mitesh Maithia

Tax Manager

Mitesh is a Tax Professional with expertise in direct, indirect, and international taxation, including transfer pricing, since 2018. Passionate about making complex tax matters simple, he shares insights to help businesses stay compliant and forward-looking.