Quick answer
UAE corporate tax applies under Federal Decree-Law No. 47 of 2022 for financial years starting on or after 1 June 2023. Taxable income up to AED 375,000 is taxed at 0 percent and income above that at 9 percent. Businesses must register with the FTA, keep proper accounts, and file within nine months of the period end.
- 0 percent up to AED 375,000 of taxable income; 9 percent above.
- Applies to financial years starting on or after 1 June 2023.
- Qualifying free zone persons can get 0 percent on qualifying income.
- Returns are due within nine months of the period end.
What are the UAE corporate tax rates?
| Taxable income or case | Rate |
|---|---|
| Up to AED 375,000 | 0 percent |
| Above AED 375,000 | 9 percent |
| Qualifying income of a Qualifying Free Zone Person | 0 percent |
| Large multinational groups in scope of global minimum tax rules | Additional top-up tax may apply |
Check the FTA and Ministry of Finance for current rules, including the domestic minimum top-up tax.
Who must register for corporate tax?
- UAE companies and other juridical persons, including free zone entities.
- Individuals conducting business above the threshold set by Cabinet decision.
- Foreign entities with a permanent establishment or nexus in the UAE.
Registration is done on the FTA EmaraTax portal, with deadlines set by FTA decisions.
What is small business relief?
Resident businesses with revenue at or below AED 3 million can elect for small business relief, treating them as having no taxable income, for tax periods ending on or before 31 December 2026. Some groups and Qualifying Free Zone Persons cannot use it. Check FTA guidance for conditions.
What accounting does corporate tax require?
- Financial statements prepared under accepted standards, generally IFRS.
- Audited financial statements for certain businesses, including Qualifying Free Zone Persons and those above revenue thresholds.
- Records kept for seven years.
- Adjustments from accounting profit to taxable income.
- Transfer pricing documentation for related-party transactions where required.
How should a business prepare?
- Register. Complete corporate tax registration on EmaraTax.
- Clean the books. Close monthly, reconcile, and keep supporting documents.
- Map adjustments. Identify non-deductible expenses and exempt income.
- Track related parties. Record related-party transactions at arm’s length.
- Plan the return. Prepare figures well before the nine-month deadline.
How does an ERP support corporate tax?
Corporate tax depends on accurate, timely accounts. Hudace accounting and close supports the general ledger and period close, and tax and trade handles tax codes, statutory reporting, and reconciliation. Your tax adviser prepares and reviews the return.
Frequently asked questions
What is the corporate tax rate in the UAE?
9 percent on taxable income above AED 375,000; 0 percent up to that amount.
When did UAE corporate tax start?
For financial years starting on or after 1 June 2023.
Do free zone companies pay corporate tax?
Qualifying Free Zone Persons can pay 0 percent on qualifying income if they meet conditions; other income is taxed at 9 percent.
What is small business relief?
An election for businesses with revenue up to AED 3 million to be treated as having no taxable income, for periods ending by 31 December 2026.
When is the corporate tax return due?
Within nine months of the end of the tax period.
How long must records be kept?
Seven years under the corporate tax law.
Where do I register?
On the FTA EmaraTax portal.