UAE Corporate Tax — 9% federal, 0% for qualifying income
UAE corporate tax applies a 9% rate on business profits above AED 375,000 — with 0% below that and 0% on qualifying free zone income. Here is how the rates work, who must register, the free zone conditions, small business relief, and how we keep your compliance clean and your rate low.
What this guide covers
Quick summary
- Rate: 0% up to AED 375,000 profit, 9% above; 0% on qualifying free zone income.
- Registration: mandatory with the FTA for taxable persons — even at 0%.
- Filing: an annual return within nine months of your financial year-end.
- Free zones: keep 0% on qualifying income if you meet the conditions.
- Relief: Small Business Relief can remove taxable income for eligible small firms.
What UAE corporate tax is
UAE corporate tax is a federal tax on business profits, introduced in June 2023. It applies to companies and, in some cases, to individuals carrying on business in the UAE. After decades of a near-zero-tax reputation, the headline rate is still low by global standards — but the rules around who pays, what qualifies for 0%, and how to register and file are where businesses get caught out. Getting your structure and compliance right is what keeps your rate as low as the law allows.
For most of our clients the message is reassuring: with the right setup and clean records, corporate tax is manageable and often minimal. The mistakes that cost money come from missed registrations, poor bookkeeping and misunderstanding the free zone rules — all of which we handle for you.
The rates: 0% and 9%
The corporate tax structure is deliberately simple:
| Taxable income | Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
| Qualifying free zone income | 0% (conditions apply) |
| Large multinationals (global rules) | Subject to a separate minimum-tax regime |
The first AED 375,000 of taxable profit is tax-free, which shelters most small businesses. Profit above that is taxed at a flat 9% — still one of the lowest headline rates in the world. There is no personal income tax on salaries, and no tax on most personal investment income.
The free zone 0% rate
Free zone companies can keep a 0% corporate tax rate on their qualifying income, provided they meet the conditions to be a Qualifying Free Zone Person — including maintaining adequate substance, earning qualifying income, and not electing to be taxed normally. Income that does not qualify is taxed at 9%. The rules are detailed, and a small misstep can cost you the 0% status across the board, so this is an area where expert advice pays for itself. Our free zone setup guide covers the structure side.
Small business relief
Smaller companies may also claim Small Business Relief, which can treat them as having no taxable income for a period if their revenue stays under the set threshold. It is a valuable simplification for early-stage businesses — we check whether you qualify and elect for it correctly.
Registration & filing
Corporate tax registration with the Federal Tax Authority is mandatory for taxable persons, including many free zone and small companies, even those expecting a 0% rate. You then file an annual corporate tax return within nine months of your financial year-end. Missing the registration deadline or the return carries penalties — so we register you on time and manage your filing.
How Aurum helps
Assess your position
We review your structure, income and free zone status to find your correct rate and reliefs.
Register with the FTA
We complete your corporate tax registration and secure your Tax Registration Number on time.
Keep tax-ready books
Our accounting team maintains records that stand up to FTA scrutiny.
Prepare & file your return
We calculate your taxable income, apply reliefs and file your annual return accurately.
Pair this with proper accounting and bookkeeping and, where required, an audit, and your compliance is fully covered.
Official sources
- Federal Tax Authority (FTA) — Corporate Tax
- UAE Ministry of Finance
- Corporate Tax Law (Federal Decree-Law No. 47 of 2022)
Corporate tax FAQs
What is the corporate tax rate in the UAE?
0% on taxable profit up to AED 375,000 and 9% on profit above that. Qualifying free zone income can be taxed at 0% if the conditions are met. There is no personal income tax.
Do free zone companies pay corporate tax?
A free zone company can keep a 0% rate on its qualifying income if it meets the conditions to be a Qualifying Free Zone Person, including adequate substance. Non-qualifying income is taxed at 9%.
Do I have to register for corporate tax even if I owe nothing?
Yes. Registration with the Federal Tax Authority is mandatory for taxable persons, including many small and free zone companies, even those expecting a 0% rate. Missing registration carries penalties.
When is the corporate tax return due?
You file an annual corporate tax return within nine months of the end of your financial year. For a calendar-year business, that means by 30 September of the following year.
What is Small Business Relief?
It is a relief that can treat an eligible small company as having no taxable income for a period, provided its revenue stays under the set threshold. It simplifies compliance for early-stage businesses.
Is there personal income tax in the UAE?
No. The UAE has no personal income tax on salaries or wages, and most personal investment income is untaxed. Corporate tax applies to business profits, not individual employment income.
Ready to take action?
Whether you're ready to start or still comparing options, we'll give you a straight answer.
