Who pays UAE Corporate Tax?
Corporate Tax applies to UAE companies, mainland and free zone, for financial years starting on or after 1 June 2023. It also applies to foreign companies with a permanent establishment in the UAE, and to individuals whose business turnover is above AED 1 million a year.
Every taxable person must register, even if profit is low or the company expects to pay nothing. New companies must register within 3 months of incorporation. Late registration carries an AED 10,000 penalty.
How much is it?
- 0% on taxable income up to AED 375,000
- 9% on taxable income above AED 375,000
- 15% Domestic Minimum Top-up Tax for large multinational groups only
Taxable income starts from the profit in your financial statements, adjusted for items such as exempt income, non-deductible costs and related-party transactions.
When do you file?
The return and any tax due are due within 9 months after the end of your financial year. For a company with a 31 December year-end, that is 30 September of the following year. Returns are filed on the FTA's EmaraTax portal.
Small Business Relief
If your revenue is AED 3 million or less in a tax period, you can elect to be treated as having no taxable income. This relief is available only for tax periods ending on or before 31 December 2026. You still need to register and file a return to claim it.
Free zone companies
A free zone licence does not automatically mean 0% tax. A Qualifying Free Zone Person can apply 0% to qualifying income, but must keep adequate substance in the free zone, prepare audited financial statements, follow transfer pricing rules and stay within the de minimis limit for other income. Other income is taxed at 9%. The conditions are tested every tax period, so the position should be checked each year.
Common mistakes we see
- Not registering because the company is small or loss-making
- Missing the election for Small Business Relief in the return
- Treating all free zone income as 0% without testing the conditions
- No documents for transactions with related parties and owners
- Claiming costs that are not deductible, such as fines and penalties
This guide is general information based on UAE rules as of November 2026. It is not tax advice for your situation, so contact us to confirm your own position.
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