In most cases you'll deal with two taxes: Corporate Tax and VAT. UAE Corporate Tax is 0% on taxable profit up to AED 375,000 and 9% on profit above that, and qualifying free-zone companies can keep 0% on their qualifying income if they meet the conditions. VAT is 5% and you register once your taxable turnover passes AED 375,000 a year. There's no personal income tax on your salary.
The UAE introduced a federal Corporate Tax that applies to financial years starting on or after 1 June 2023. It's charged on your business's taxable profit, not your turnover.
The rates are straightforward, and most small businesses pay little or nothing thanks to the tax-free band:
VAT is a separate, 5% tax on most goods and services. Registration is mandatory once your taxable turnover passes AED 375,000 in a year, and you can register voluntarily from AED 187,500 — which some founders do to reclaim VAT on their costs.
There's good news on the personal side: the UAE has no personal income tax, so salaries and wages aren't taxed. Corporate Tax applies to business profit, not to what you pay yourself as a wage.
For a typical new company, the day-to-day tasks are registering for Corporate Tax with the FTA, keeping proper accounting records, registering for VAT if and when you cross the threshold, and filing your returns on time. Good bookkeeping from day one makes all of this far simpler.
This is general information, not tax advice, and the rules and thresholds can change. Your exact position depends on your activity, structure and free-zone status — so confirm it with Bizvisor or a qualified tax adviser before you rely on it.
A Qualifying Free Zone Person can keep a 0% Corporate Tax rate on its qualifying income, but only if it meets the conditions in the rules — such as maintaining adequate substance and earning the right kind of income. Income that doesn't qualify can be taxed at 9%. We'll help you check whether your setup meets the tests.
Generally yes. Most businesses are expected to register with the Federal Tax Authority and file an annual return even when the profit falls in the 0% band and no tax is due. Registration and filing are separate from actually paying.
Once your taxable turnover passes the mandatory threshold — both figures are under "VAT and personal income tax" above. Registering, charging and filing are covered on Corporate Tax & VAT.
No. The UAE has no personal income tax, so salaries and wages are not taxed. Corporate Tax applies to business profit rather than to personal earnings.
Tell us about your activity and structure — AgentBiz or a human advisor will walk you through Corporate Tax and VAT, with no obligation. General guidance, not a substitute for formal tax advice.