Corporate Tax
Key Corporate Tax Rates
The UAE has a tiered corporate tax system:
A 0% rate applies to taxable income up to AED 375,000 to support small businesses and startups
A 9% rate applies to taxable income exceeding AED 375,000.
Who is Subject to Corporate Tax?
CT generally applies to:
Juridical persons incorporated in the UAE, including those in Free Zones.
Individuals (natural persons) conducting business activities in the UAE with an annual turnover exceeding AED 1 million.
Non-resident juridical persons with a permanent establishment or UAE-sourced income in the UAE
Certain entities like government bodies and public benefit entities may be exempt under specific conditions.
Free Zone Regulations
Businesses in UAE Free Zones may qualify for a 0% corporate tax rate on “Qualifying Income” if they meet the conditions to be a Qualifying Free Zone Person (QFZP). These conditions include maintaining adequate economic substance, deriving “Qualifying Income” from approved activities, complying with transfer pricing rules, preparing audited financial statements, and adhering to the de minimis rule regarding non-qualifying income.
Compliance and Deadlines
All taxable persons, including QFZPs and eligible individuals, must register for CT and get a Tax Registration Number (TRN) through the FTA’s e-services platform.
Registration Deadlines: Vary depending on the entity type and license date. For natural persons exceeding the threshold in 2025, registration is due by March 31, 2026
Filing & Payment: Tax returns and payments are due within 9 months after the financial year ends. For a calendar year financial year, the first deadline is September 30, 2026.
Record Keeping: Businesses must keep relevant financial records for at least 7 years.