Corporate tax in the UAE
Who pays UAE corporate tax and how much, when a business must register with the Federal Tax Authority, which reliefs and free zone rules can apply, how tax periods and returns work, and what the penalties are for registering, filing or paying late.
UAE corporate tax applies to business profits for tax periods starting on or after 1 June 2023. Taxable income up to and including AED 375,000 in a tax period is taxed at 0%, and the part above it at 9%. The Ministry of Finance writes the rules, and the Federal Tax Authority (FTA) runs registration, returns and payments.
The 0% band
AED 375,000
The 0% Corporate Tax band covers Taxable Income up to and including AED 375,000 in a Tax Period; Taxable Income above AED 375,000 is taxed at 9%. The band applies once per Taxable Person, regardless of how many businesses it carries on.
- Applies to
- Taxable Persons (not Qualifying Free Zone Persons on Qualifying Income), per Tax Period
- Source
- Ministry of Finance Confirms Applicable Taxable Income Threshold for Corporate Tax (Cabinet Decision No. 116 of 2022), Ministry of Finance
- Checked
Who pays
Companies and other juridical persons resident in the UAE, free zone companies included, are taxable persons, and so are non-residents with a permanent establishment or a nexus in the UAE. An individual is taxed only on business activities, and only once their combined turnover exceeds AED 1 million in a calendar year. Salary and personal investment income are outside the tax. A person or company that needs to prove UAE tax residence abroad can apply to the FTA for a tax residency certificate.
Reliefs and free zones
A resident business whose revenue has not exceeded AED 3 million in the tax period, or in any earlier one, can elect small business relief for tax periods ending on or before 31 December 2029.
A qualifying free zone person pays 0% on its qualifying income and 9% on its other taxable income, as long as it meets every condition. One of them is the de minimis test: non-qualifying revenue may not exceed the lower of AED 5 million or 5% of total revenue.
UAE entities of large multinational groups, with global revenue of EUR 750 million or more, pay a domestic top-up tax that brings their effective rate up to 15%.
Registration, returns and penalties
A company formed on or after 1 March 2024 applies for registration within three months of incorporation, and registering late costs AED 10,000. The return is filed and the tax paid within nine months after the end of the tax period, so a financial year that ended on 31 December 2025 was due by 30 September 2026. Tax paid late carries a penalty of 14% a year, charged for each month or part of a month, and a late return adds AED 500 a month for the first year.
The calculators below apply these rules to your own figures: the tax due, small business relief, the return deadline, the free zone de minimis test and the late payment penalty.
Guides on corporate tax
-
UAE corporate tax rate: who pays 9% and who pays 0%
Does the UAE have corporate tax? Yes: 0% up to AED 375,000 of taxable income and 9% above, 15% for large groups, who is exempt and a worked example.
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How to register for corporate tax in the UAE
Who must register for UAE corporate tax, freelancers over AED 1 million included: the deadlines, EmaraTax steps, documents and the AED 10,000 late penalty.
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Corporate tax return in the UAE: deadlines and how to file
When the UAE corporate tax return is due (nine months after the tax period ends), what it contains, financial statements, and how to file and pay on EmaraTax.
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Corporate tax in free zones: the qualifying free zone person rules
When a UAE free zone company pays 0% corporate tax: qualifying free zone person conditions, qualifying and excluded activities, de minimis and losing status.
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Small business relief: who qualifies for UAE corporate tax relief and how to claim it
UAE small business relief explained: the AED 3 million revenue test, the extension to tax periods ending by 31 December 2029, who is excluded and how to elect.
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Corporate tax penalties in the UAE: registration, filing and payment
The UAE corporate tax penalty table: AED 10,000 for late registration, AED 500 a month for a late return, 14% a year on unpaid tax, disclosures and waivers.
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How to get a UAE tax residency certificate
How to get a UAE tax residency certificate from the FTA: the 183-day and 90-day tests, company rules, documents, the AED 50 plus AED 500 to 1,750 fee, timing.
Calculators for this topic
Corporate tax calculator
The corporate tax due on the taxable income of a tax period, with the zero-rate band, the free zone split and the effective rate shown.
Small business relief checker
Whether a business can elect small business relief for a tax period, and the reason if it cannot.
Corporate tax return due date
The filing and payment deadline for a tax period, and how many days are left.
Free zone de minimis test
Whether a qualifying free zone person stays within the limit on non-qualifying revenue, and the headroom left.
Late tax payment penalty calculator
The penalty on corporate tax, VAT or excise tax paid late, month by month.
Frequently asked questions
What is the corporate tax rate in the UAE?
Taxable income up to and including AED 375,000 in a tax period is taxed at 0%, and the part above it at 9%. A qualifying free zone person pays 0% on its qualifying income and 9% on its other taxable income.
Does a company with low profits still have to register for corporate tax?
Yes. A resident company must register whatever its income: the AED 375,000 band lowers the tax, not the duty to register. An individual in business registers only when the turnover of those activities exceeds AED 1 million in a calendar year.
When is the corporate tax return due?
The return must be filed, and the tax paid, within nine months after the end of the tax period, unless the Federal Tax Authority sets another date. For a financial year that ended on 31 December 2025, that was 30 September 2026.
Do free zone companies pay corporate tax?
A free zone company is a taxable person. If it is a qualifying free zone person and keeps meeting every condition, it pays 0% on qualifying income and 9% on its other taxable income; otherwise it is taxed like any other business.
Who can claim small business relief?
A resident business whose revenue is no more than AED 3 million in the tax period and in every earlier one, for tax periods ending on or before 31 December 2029. Qualifying free zone persons and members of large multinational groups cannot claim it.
What is the penalty for paying corporate tax late?
Unpaid tax attracts a penalty at 14% a year, charged for each month or part of a month from the day after the due date. Filing the return late carries a separate monthly penalty.
Sources
Official and primary sources we used for this page, with the date we last opened each one.
- Corporate Tax in the UAE
- Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments (consolidated, unofficial translation, v13.1.26), Article 3
- Ministry of Finance Confirms Applicable Taxable Income Threshold for Corporate Tax (Cabinet Decision No. 116 of 2022)
- Federal Tax Authority Decision No. 3 of 2024 on the Timeline Specified for Registration of Taxable Persons for Corporate Tax (unofficial translation), Article 4(2)
- Ministry of Finance Announces Issuance of UAE Cabinet Decision on Treatment of Natural Persons Undertaking a Business or Business Activity (Cabinet Decision No. 49 of 2023)
- Ministerial Decision No. 73 of 2023 on Small Business Relief for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, Article 2
- Ministerial Decision No. 131 of 2026 Amending Certain Provisions of Ministerial Decision No. 73 of 2023 on Small Business Relief
- Free Zone Persons Corporate Tax Guide (CTGFZP1, May 2024), section 3.2.8
- Domestic Minimum Top-up Tax in the UAE
- Cabinet Decision No. 75 of 2023 and its amendments on the Administrative Penalties for Violations Related to the Application of Federal Decree-Law No. 47 of 2022, table item 14
- Federal Tax Authority Calls on All Persons subject to Corporate Tax to File Their Tax Returns and Pay the Corporate Tax Due Within the Specified Timeframes to Avoid Late-Payment Penalties (press release, 2 September 2026)