UAE corporate tax basics
| Item | Rate |
|---|---|
| Taxable income up to AED 375,000 | 0% |
| Taxable income above AED 375,000 | 9% |
| Qualifying income of a Qualifying Free Zone Person | 0% (conditions apply) |
| Non-qualifying income of a Qualifying Free Zone Person | 9% (no AED 375,000 band) |
| Large multinational groups in scope of Pillar Two | 15% domestic minimum top-up tax |
Corporate tax applies to financial years starting on or after 1 June 2023 and is charged on taxable income (broadly accounting profit after adjustments), not revenue. Every free zone entity must register with the Federal Tax Authority.
Qualifying Free Zone Person (QFZP)
- Adequate substance in the free zone
- Qualifying income as defined by cabinet decision
- Not electing to be subject to standard corporate tax
- Non-qualifying revenue within the de minimis limit (lower of 5% of revenue or AED 5 million)
- Transfer-pricing and audited-accounts requirements
Because status depends on facts and evidence, get advice before assuming a 0% rate.
Small Business Relief
Businesses with revenue up to AED 3 million may elect relief for tax periods ending on or before 31 December 2026. Qualifying Free Zone Persons cannot use it. Check FTA guidance for later periods.
VAT registration
VAT is charged at 5%. Registration is mandatory above AED 375,000 of taxable supplies in the previous 12 months (or expected in the next 30 days) and voluntary above AED 187,500. Designated-zone rules can change VAT treatment for certain goods movements.
Annual compliance checklist
- Licence renewal and lease renewal
- Corporate-tax registration and annual return
- VAT registration and periodic returns if registered
- Accounting records and financial statements (audit where required)
- Beneficial-owner (UBO) register maintained and updated
- AML registration and reporting where your sector requires it
- Economic Substance Regulations reporting was repealed for financial years starting on or after 1 January 2023; QFZP substance rules are separate — confirm current guidance
Official sources
Federal Tax Authority (tax.gov.ae) · UAE Government portal. This page is general information reviewed September 2026; it is not tax advice.
UAE tax and compliance: FAQs
What is the UAE corporate tax rate?
0% on taxable income up to AED 375,000 and 9% above it. Certain large multinational groups may face a 15% domestic minimum top-up tax. Rates and thresholds are set by federal law and can change; check the Federal Tax Authority.
Do free zone companies pay corporate tax?
They are within the regime and must register. A Qualifying Free Zone Person can access 0% on qualifying income and pays 9% on other taxable income, subject to conditions including substance and a de minimis limit on non-qualifying revenue.
What is a Qualifying Free Zone Person?
A free zone entity that meets the legal conditions — including adequate substance, qualifying income and not electing standard tax — and keeps non-qualifying revenue within the de minimis limit. It is not automatic.
Do I need to register for VAT?
VAT is 5%. Registration is mandatory when taxable supplies exceed AED 375,000 in 12 months and voluntary above AED 187,500. Some free zones are designated zones with special VAT treatment for goods.
Is there small business relief?
Eligible businesses with revenue up to AED 3 million may elect Small Business Relief for tax periods ending on or before 31 December 2026. Check FTA guidance for the current position.
What accounting records must I keep?
Companies must keep financial records and prepare financial statements in accordance with accepted standards; some entities must have audited accounts. Confirm the requirements for your entity.
Is the UAE “completely tax free”?
No. UAE corporate tax applies from financial years starting on or after 1 June 2023, alongside VAT and other levies.
What about UBO and AML?
Companies must maintain beneficial-owner information and, in certain sectors, meet anti-money-laundering registration and reporting duties. Confirm which apply to your activity.
Get a written quote for UAE tax and compliance
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Information on this page is general and was compiled from public sources; fees and rules are set by the relevant authorities and change. Figures were last reviewed in July 2026 and exclude professional-service fees, office rent beyond any bundled desk, external approvals and bank requirements. This is not legal, tax or immigration advice. Always confirm the current position with the relevant authority before paying. See our Disclaimer.