Key points
- Taxable income up to AED 375,000 is taxed at 0%, and income above that at 9%.
- Small Business Relief (revenue of AED 3 million or less) now runs to tax periods ending on or before 31 December 2029.
- Every company must register and file, even if no tax is due.
- The return and payment are due within nine months after the end of the tax period.
- Keep records and supporting documents for at least seven years.
What is UAE corporate tax?
UAE corporate tax is a federal tax on business profits introduced by Federal Decree-Law No. 47 of 2022. It applies to financial years starting on or after 1 June 2023, so most companies with a calendar year end had their first tax period from 1 January to 31 December 2024.
The Federal Tax Authority (FTA) administers it through the EmaraTax portal, the same portal used for VAT.
Corporate tax rates
| Taxable income | Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
| Qualifying income of a Qualifying Free Zone Person | 0% |
Large multinational groups with global revenue of EUR 750 million or more are subject to a domestic minimum top-up tax under separate rules.
Try our free corporate tax calculator to estimate your tax.
Who must register?
- All companies and other juridical persons incorporated in the UAE, including free zone companies, whether or not they make a profit.
- Individuals doing business in the UAE whose business turnover is more than AED 1 million in a calendar year.
- Foreign companies with a permanent establishment or nexus in the UAE.
Registration is done on EmaraTax. Late registration carries an administrative penalty, so register as soon as you are required to.
Small Business Relief
Resident businesses whose revenue is AED 3 million or less in the tax period, and in every earlier tax period, can elect Small Business Relief. If elected, the business is treated as having no taxable income for that period.
The relief was due to end with tax periods ending on 31 December 2026. Ministerial Decision No. 131 of 2026 extended it to tax periods ending on or before 31 December 2029. The AED 3 million threshold is unchanged.
- You must still register and file a return, and elect the relief in the return.
- Qualifying Free Zone Persons and members of multinational groups with consolidated revenue over AED 3.15 billion cannot use it.
- Once revenue goes above AED 3 million in any period, the relief is no longer available for later periods.
How taxable income is worked out
- Start with the accounting profit in financial statements prepared under IFRS.
- Add back non-deductible expenses: 50% of client entertainment, fines and penalties, donations to non-approved bodies, and corporate tax itself.
- Subtract exempt income, such as qualifying dividends and participation gains.
- Apply the interest limitation rule if net interest is high, and make transfer pricing adjustments for related-party deals.
- Offset tax losses brought forward, up to 75% of taxable income.
Deadlines
The corporate tax return is filed, and any tax paid, within nine months after the end of the tax period. For a 31 December year end, the deadline is 30 September of the following year.
If you elect Small Business Relief, the same deadline applies to filing the return.
Records you must keep
Keep your financial statements, ledgers, invoices, contracts and working papers for at least seven years after the end of the tax period. Businesses with revenue above AED 50 million, and Qualifying Free Zone Persons, must have audited financial statements.
How software helps
The easiest way to stay ready is to keep your books in software that works out the corporate tax computation for you. Ledgerline ERP, Khayyat and Bayline calculate accounting profit, add-backs, taxable income and the Small Business Relief check straight from the ledger. Tax firms can use Tax Practice Desk to prepare computations for every client.
Frequently asked questions
Do I need to register for corporate tax if my company makes a loss?
Yes. Every UAE company must register and file a corporate tax return, even if it has a loss or no income. Losses can be carried forward to reduce future taxable income.
Is Small Business Relief automatic?
No. You must elect it in your corporate tax return for each tax period in which you qualify.
Does Small Business Relief remove the need to keep accounts?
No. You still need proper accounting records to show your revenue and to file the return.
Do free zone companies pay corporate tax?
Free zone companies must register and file. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on other taxable income, provided it meets all the conditions, including adequate substance and audited financial statements.
This guide is general information, not tax or legal advice. Rules change, so check the latest guidance from the Federal Tax Authority, the Ministry of Finance or MOHRE, or speak to a registered adviser.