Corporate Tax
Corporate Tax for Moving and Relocation Companies in the UAE
UAE corporate tax for movers: household moves, corporate relocations, international partner agents and storage income.
corporate tax moving company uae
UAE moving and relocation companies pay 0% corporate tax on taxable income up to AED 375,000 and 9% above it under Article 3 of Federal Decree-Law No. 47 of 2022. Move revenue is taxed when the move completes, international moves split revenue with partner agents abroad, and most small movers with revenue up to AED 3 million can elect Small Business Relief.
Basis: UAE Federal Tax Authority
- Corporate tax rates
- 0% on taxable income up to AED 375,000; 9% above
- Article 3, Federal Decree-Law No. 47 of 2022
- International splits
- Each agent reports only its own share
- Article 20, Federal Decree-Law No. 47 of 2022
- Partner pricing
- Related-party agent settlements must be arm's length
- Article 34, Federal Decree-Law No. 47 of 2022
- Small Business Relief
- Revenue up to AED 3,000,000; tax periods ending on or before 31 December 2029
- Article 21; Ministerial Decision No. 73 of 2023
# How corporate tax works for moving and relocation companies
Movers earn per-move fees: taxable income is move revenue less crew, vehicles, packing materials and any partner-agent costs, taxed at the standard bands. Domestic moves are simple; international moves split the economics with origin and destination agents.
Storage between moves is recognised over the storage months, distinct from the move itself. Packing materials are deducted as used; reusable crates and blankets are consumable assets written off over their working life.
# Computing taxable income for moving and relocation companies
Revenue is recognised when the move is completed and the goods delivered. Deposits are liabilities until then. Claims for damaged goods are deductible losses; insurance recoveries are income when established.
Logistics businesses compute taxable income from accounting profit adjusted under Article 20 of Federal Decree-Law No. 47 of 2022, at the standard 0%/9% bands. The sector's defining question is principal versus agent: a forwarder or 3PL acting as principal reports gross shipment values with carrier costs deductible, while one acting as agent reports only its fee or commission.
Disbursements need discipline: customs duty, port charges and carrier freight paid on the customer's behalf are the customer's costs passing through, not the forwarder's revenue or deduction, unless the forwarder is principal. Fuel, fleet, warehousing and staff are the deductible operating base, and related-party truck or vessel leases must be arm's length under Article 34.
Deductions that matter most for moving and relocation companies:
- Crew wages, visas and per-diems are deductible.
- Vehicles are capitalised and depreciated; fuel and maintenance deducted.
- Packing materials are deductible as used; partner-agent fees are deductible.
| Expense | Treatment |
|---|---|
| Carrier/freight charges (as principal) | Deductible |
| Fuel and fleet maintenance | Deductible |
| Trucks, trailers, handling equipment | Capitalised; depreciated |
| Warehouse rent and handling labour | Deductible |
| Disbursements as agent (duty, port charges) | Not revenue; not deductible |
| Customs brokerage fees | Deductible |
| Traffic and customs fines | Not deductible (Article 33) |
| Owner's private vehicle costs | Not deductible |
# International moves and partner agents
An international move's revenue is shared: the booking agent keeps its share and pays the destination agent for its leg. Each party reports only its own share as revenue with its own costs deductible; nobody reports the gross door-to-door price. The inter-agent agreement sets the split.
Related-party agents in other countries must settle at arm's length rates under Article 34. Benchmark against independent agent tariffs for comparable routes; the group's internal rate card needs the same discipline as any other transfer price.
Logistics errors cluster around the principal-agent boundary: reporting gross shipment values as revenue while acting as agent, or net fees while acting as principal; treating customer duty payments as own costs; and missing the transfer-pricing on related-party fleet leases. Last-mile operators add COD mishandling, and everyone underestimates how closely the FTA can reconcile customs data to reported revenue.
# Free zone vs mainland for moving and relocation companies
Logistics is one of the friendlier sectors for the free zone 0%: logistics services are a qualifying activity under Ministerial Decision No. 229 of 2025, so a Qualifying Free Zone Person can earn 0% on qualifying logistics income, including services to other free zone persons and qualifying international flows. Domestic mainland trucking for mainland customers is generally taxed at 9%.
Ship ownership and operation has its own qualifying treatment, while freight forwarding's principal-versus-agent analysis decides what the 'income' even is before the rate applies. As ever, the 0% needs the Article 18 conditions: substance, audited accounts and transfer-pricing compliance.
Moving services to consumers are generally taxed at 9%; international logistics flows of a Qualifying Free Zone Person may be analysed as qualifying logistics services (Ministerial Decision No. 229 of 2025).
# Worked example: moving and relocation companies tax computation
A mover completes AED 2.2 million of moves: domestic AED 1.4 million, international share AED 800,000. Crew AED 700,000, vehicles AED 350,000, materials AED 180,000, partner agents AED 300,000 and overheads AED 250,000:
With revenue under AED 3 million, Small Business Relief could reduce the AED 4,050 to nil for periods ending on or before 31 December 2029. Each move needs a job file; cash moves without records are the sector's classic leakage.
For help applying these rules to your own business, including registration, computations and filing, contact us for a quote.
| Item | Amount |
|---|---|
| Move revenue (own share) | AED 2,200,000 |
| Partner's share passed through (not revenue) | AED 0 |
| Less: crew costs | (AED 700,000) |
| Less: vehicles | (AED 350,000) |
| Less: materials | (AED 180,000) |
| Less: partner agents | (AED 300,000) |
| Less: overheads | (AED 250,000) |
| Taxable income | AED 420,000 |
| Tax: 0% on first AED 375,000 | AED 0 |
| Tax: 9% on AED 45,000 | AED 4,050 |
Sources and legal basis
Legislation and decisions2
- Federal Decree-Law No. 47 of 2022
- Ministerial Decision No. 229 of 2025
Authorities, systems and registers4
- UAE Federal Tax Authority
- UAE Ministry of Finance
- EmaraTax
- Federal Authority for Identity, Citizenship, Customs and Port Security
- Corporate Tax – Federal Tax AuthorityUAE Federal Tax Authority
- Corporate Tax – Ministry of FinanceUAE Ministry of Finance
Rates, thresholds and deadlines change. Every figure above is linked to the authority that publishes it — if the two ever disagree, the authority is right and this page is out of date. Tell us and we will fix it.
Frequently asked questions
Is storage income taxed differently from moving income?
No. Both are the same company's taxable income at the standard bands; the difference is timing, with storage recognised over the storage months and moves on completion. Segment them in management accounts for margin analysis, but file one computation.
What if the client's employer pays for the move?
Corporate-paid relocations are still your revenue: the employer is simply the customer. The employer's own tax treatment of the relocation benefit for its employee is a separate question. Your invoice goes to whoever contracted the move, and the revenue is recognised on completion as usual.
Does a logistics company need to register if it only handles transit cargo?
Yes, if it is a UAE juridical person carrying on business. Registration under Article 51 follows the business activity, not the cargo's destination. Transit and re-export flows may affect the free zone qualifying analysis and customs treatment, but they do not remove the registration duty.
When is the logistics company's tax return due?
Within nine months of the end of the tax period (Articles 53(1) and 48 of Federal Decree-Law No. 47 of 2022), with any tax payable by the same date. Accrue carrier invoices and unbilled shipments at the year-end, because logistics cut-off is notoriously messy. Late filing attracts administrative penalties.