UAE corporate tax rates at a glance
| Who / which income | Rate |
|---|---|
| Taxable income up to AED 375,000 | 0% |
| Taxable income above AED 375,000 | 9% |
| Revenue ≤ AED 3m with Small Business Relief (to 31 Dec 2029) | Treated as nil |
| Qualifying Free Zone Person – qualifying income | 0% |
| Qualifying Free Zone Person – non-qualifying income | 9% |
| Large MNE groups (global revenue ≥ EUR 750m) | 15% minimum (DMTT) |
How the tax is worked out
- Start with the net profit in your financial statements.
- Add back expenses the law does not allow – for example half of client entertainment, fines and penalties, and donations to non-approved bodies.
- Remove exempt income such as qualifying dividends and gains on qualifying shareholdings.
- Offset brought-forward tax losses, up to 75% of the result.
- Apply 0% to the first AED 375,000 and 9% to the rest.
Worked example
A mainland trading company has revenue of AED 5 million and accounting profit of AED 900,000, including AED 40,000 of client entertainment (half is disallowed). Taxable income = 900,000 + 20,000 = AED 920,000. Tax = 9% × (920,000 − 375,000) = AED 49,050, an effective rate of about 5.5% on profit.
If the same business had revenue of AED 2.8 million, it could elect Small Business Relief and pay nothing for that period – though it must still register, keep records and file a return.
Key deadlines
- Tax return and payment: within 9 months of the end of the tax period (31 December year-ends file by 30 September).
- Records: keep for 7 years after the end of the tax period.
- Late registration can carry an AED 10,000 penalty – register as soon as you are in scope.
Selling to customers too? Check your VAT position with the UAE VAT calculator, and read our guide to Small Business Relief to 2029.
An estimate for planning only. Transfer pricing, groups, tax grouping and specific reliefs can change the result – confirm with the Federal Tax Authority (tax.gov.ae) or a registered tax agent.
Frequently asked questions
What is the corporate tax rate in the UAE?
Taxable income up to AED 375,000 is taxed at 0% and the part above AED 375,000 at 9%. Large multinational groups with global revenue of EUR 750 million or more pay a 15% minimum top-up tax from 2025.
What is Small Business Relief and has it been extended?
Resident businesses with revenue of AED 3 million or less in a tax period can elect to be treated as having no taxable income. Ministerial Decision No. 131 of 2026 extended the relief to tax periods ending on or before 31 December 2029. It must be claimed in the tax return, and once revenue goes above AED 3 million in any period the relief cannot be used again.
Do I still need to register and file if I pay no tax?
Yes. Businesses within scope must register with the Federal Tax Authority and file a return within 9 months of the end of the tax period, even when the tax due is zero or Small Business Relief is claimed.
Are freelancers and sole proprietors taxed?
A natural person conducting business is only in scope when turnover from that business exceeds AED 1 million in a calendar year. Salary, personal investment income and personal real estate income are not taxed.
How are free zone companies taxed?
A Qualifying Free Zone Person pays 0% on qualifying income and 9% on non-qualifying income. It must keep adequate substance, prepare audited accounts and keep non-qualifying revenue within the de minimis limit of 5% of revenue or AED 5 million, whichever is lower. Free zone persons cannot claim Small Business Relief.
Can I carry forward tax losses?
Yes. Tax losses can be carried forward indefinitely and used to offset up to 75% of taxable income in later periods, subject to ownership continuity rules. Losses arising in periods where Small Business Relief was claimed cannot be carried forward.
Last reviewed: October 2026