Tax Guide

UAE Corporate Tax: a simple guide

9% on profit above AED 375,000, nil below it, and one return due nine months after your period ends. Free-zone companies can hold 0% on qualifying income if they meet the Qualifying Free Zone Person conditions. The tax applies to financial years starting on or after 1 June 2023. Below, the rate, the threshold, how free zones are treated, and the steps to stay compliant — in plain English.

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What's inside
  1. Check if you're in scope
  2. Register with the FTA
  3. Keep proper books
  4. Work out your taxable income
  5. File your annual return
  6. Pay any tax due
9%headline rate on taxable profits
0%on profits up to AED 375,000
0%qualifying free-zone income
1 returnfiled with the FTA each year
At a glance

The key facts

Headline rate
9% on taxable profits above AED 375,000
Small-business band
0% on the first AED 375,000 of taxable profit
Who's in scope
Most UAE companies and business activities; some entities and personal income are exempt or outside scope
Free zones
A Qualifying Free Zone Person can get 0% on qualifying income if the conditions are met; other income is taxed at 9%
Registration & filing
Register with the FTA and file one annual return within nine months of your period end. Small Business Relief is available below AED 3m revenue — but only for tax periods ending on or before 31 December 2026
Separate from VAT
Corporate Tax is distinct from the 5% VAT — they are two different taxes
The process

Staying compliant, step by step

The path most businesses follow — the same one we walk our clients through.

1
Check if you're in scopeMost UAE businesses and commercial activities are within scope. Some entities and income are exempt or outside it — such as government bodies and personal income like salary and most personal investments. We confirm where you stand.
2
Register with the FTAIn-scope businesses register for Corporate Tax with the Federal Tax Authority and receive a tax registration number. There are registration timelines to meet, and penalties can apply for registering late.
3
Keep proper booksMaintain accurate accounting records and financial statements. Good bookkeeping is the foundation for working out your taxable income correctly and supporting your return if questions arise.
4
Work out your taxable incomeStart from your accounting profit and apply the Corporate Tax rules — adjustments, exemptions, and any reliefs you qualify for. Small Business Relief applies below AED 3m revenue and is currently legislated only for periods ending on or before 31 December 2026, so check whether your period still falls inside it.
5
File your annual returnSubmit one Corporate Tax return to the FTA for each financial year, within nine months of the end of your tax period.
6
Pay any tax duePay the Corporate Tax owed by the due date. Profits up to AED 375,000 are taxed at 0%, so many small businesses will file with little or nothing to pay.
FAQ

UAE Corporate Tax — common questions

The things business owners ask us most about the new tax.

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The headline rate is 9% on taxable profits above AED 375,000. Profits up to AED 375,000 are taxed at 0%, which is designed to support small businesses and startups.

It can. A Qualifying Free Zone Person may benefit from a 0% rate on its qualifying income if it meets the conditions — such as adequate substance and carrying out qualifying activities. Income that doesn't qualify is taxed at 9%. We'll help you check whether you meet the conditions.

Generally yes. In-scope businesses are expected to register for Corporate Tax with the Federal Tax Authority and file a return, even where the tax due is nil. There are timelines for registering, and penalties can apply for registering or filing late.

Personal income such as your salary and most personal investment income is outside the scope of Corporate Tax. The tax is aimed at business and commercial activity. If you're unsure how your income is classified, we can help you confirm it.

No. Corporate Tax is a tax on business profits and is separate from the 5% VAT, which is a tax on goods and services. A business may deal with both, and they are registered and filed separately.

Need a hand?

Get your Corporate Tax position confirmed

This guide is general information, not tax advice, and the rules and thresholds evolve. Talk to Bizvisor or your tax adviser to confirm how Corporate Tax applies to your business — registration, reliefs, filing and all.

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