The basics
UAE Corporate Tax applies to financial years starting on or after 1 June 2023. The standard rates are simple:
| Taxable income | Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
| Qualifying income of a Qualifying Free Zone Person | 0% |
Large multinational groups are also subject to a 15% Domestic Minimum Top-up Tax (DMTT) from 1 January 2025. It applies to groups with consolidated global revenue of EUR 750 million or more in at least two of the four preceding financial years, and tops up their effective UAE tax rate to 15%. It does not affect most small and medium businesses.
Who must register
Almost every UAE company must register with the FTA, including free zone companies and businesses that expect to pay no tax. Individuals carrying on business are also in scope once their business turnover passes AED 1 million in a calendar year.
Registration is required even if you make a loss or qualify for Small Business Relief. Late registration can lead to an administrative penalty.
How taxable income is calculated
Taxable income starts from the accounting profit in your financial statements, prepared under IFRS. It is then adjusted for items such as:
- Non-deductible expenses, for example fines and penalties.
- Partly deductible items such as entertainment costs.
- Exempt income, such as qualifying dividends.
- Related party transactions, which must be at arm's length.
- Tax losses brought forward from earlier periods.
This is why accurate books matter: your tax return can only be as good as the financial statements behind it.
Free zone companies
A Qualifying Free Zone Person can pay 0% on qualifying income, but must meet conditions including adequate substance in the free zone, audited financial statements and limits on non-qualifying revenue. Failing a condition can remove the 0% rate for that period and the following four tax periods, so an annual review is worthwhile.
Deadlines and records
The Corporate Tax return and payment are due within 9 months of the end of the tax period. For a 31 December year-end, that is 30 September of the following year. Records and supporting documents must be kept for 7 years.
Audited financial statements are required for businesses with revenue above AED 50 million and for Qualifying Free Zone Persons.
This article is general information based on UAE rules as of November 2026 and is not tax advice. Rules change, so please WhatsApp us or call +971 50 512 4558 about your situation.