Corporate tax in the UAE, in plain words.

Who has to register

Every company incorporated in the UAE, including free zone companies, has to register for corporate tax. This applies even if the company has no profit or no tax to pay.

Late registration can lead to a penalty, so register within 3 months of the licence being issued.

The rates

• 0% on taxable income up to AED 375,000
• 9% on taxable income above AED 375,000

Taxable income starts from the accounting profit in your financial statements, adjusted for items the law treats differently.

Small Business Relief

Resident companies with revenue of AED 3,000,000 or less can choose to be treated as having no taxable income, for tax periods ending on or before 31 December 2029. A return still has to be filed.

Some companies are excluded, including Qualifying Free Zone Persons and members of large groups.

Free zone companies

A free zone company that meets the conditions of a Qualifying Free Zone Person can pay 0% on qualifying income. The conditions include adequate substance in the free zone and audited financial statements.

Income that is not qualifying is taxed at 9%. The rules are detailed, so it is worth checking them for your activity.

Deadlines and records

• The return and payment are due within 9 months of the end of the tax period
• Your tax period usually follows your financial year
• Records must be kept for 7 years