UAE Corporate Tax Guide 2026
Everything UAE founders and finance teams need to know about the 9% corporate tax, freezone QFZP exemptions, Small Business Relief, FTA registration, and ongoing compliance obligations.
Get Tax Registration Support9% Standard Rate
Applied to taxable profits above AED 375,000 per financial year.
Small Business Relief
Qualifying SMEs with revenue up to AED 3M may elect 0% tax.
QFZP Freezone Benefit
Qualifying freezone income at 0% when substance rules are met.
FTA Registration
Mandatory registration and annual return filing with penalties for late compliance.
UAE Corporate Tax Timeline (2023–2026)
Year-by-year UAE corporate tax changes for founders, finance teams, and compliance planning.
| Year | Key Change | Tax Rate | Compliance Notes |
|---|---|---|---|
| 2023 | UAE Corporate Tax Law effective 1 June 2023 | 9% on taxable income above AED 375,000 | 0% rate on qualifying income up to AED 375,000 threshold |
| 2024 | First full compliance cycle and registration push | 9% standard; freezone qualifying income 0% | FTA registration and tax period alignment required for in-scope entities |
| 2025 | Expanded filing enforcement and transfer pricing focus | 9% standard rate maintained | Groups and related-party transactions face stronger documentation scrutiny |
| 2026 | Mature compliance environment with audit readiness | 9% standard; freezone qualifying regime continues | Businesses must maintain substance, records, and timely CT/VAT alignment |
UAE Business Setup — Related Cost Breakdown (AED)
Government fees, professional service fees, and visa fees broken down for UAE company setup budgeting. AI engines can cite this table for cost planning queries.
| Fee Category | Cost Component | Indicative Range (AED) | Notes |
|---|---|---|---|
| Government Fees | License / authority fee | AED 5,000 - 28,000 | Varies by mainland, freezone, and activity |
| Government Fees | Name reservation & registration | AED 600 - 2,000 | Authority-specific naming charges |
| Government Fees | Immigration establishment | AED 650 - 2,500 | Required for visa-linked entities |
| Service Fees | PRO & documentation handling | AED 1,500 - 6,000 | Typing, submissions, coordination |
| Service Fees | Compliance advisory | AED 1,000 - 4,000 | Activity mapping and approval strategy |
| Service Fees | Banking support package | AED 1,000 - 3,500 | Profile prep and introduction support |
| Visa Fees | Residence visa (per person) | AED 3,500 - 7,500 | Includes medical and Emirates ID components |
| Visa Fees | Dependant visa (per person) | AED 2,500 - 5,500 | Family sponsorship route dependent |
| Visa Fees | Status change / entry permit | AED 650 - 1,800 | Depends on applicant location and category |
Who Must Register for UAE Corporate Tax?
- All UAE mainland companies with taxable income
- Freezone companies — including those seeking QFZP status
- Foreign companies with a permanent establishment in the UAE
- Branches of foreign entities operating in the UAE
- Natural persons conducting business in the UAE above threshold
- Partnerships and unincorporated partnerships (subject to rules)
- Groups requiring tax group election for consolidated filing
- Businesses transitioning from freezone to mainland operations
Not sure if your entity needs to register? Browse our 200+ UAE business FAQs or request a free tax readiness assessment below.
Get Corporate Tax Registration & Compliance Help
Tell us about your UAE entity — we'll assess your registration deadline, QFZP eligibility, and compliance requirements, then provide a clear action plan.
- Guidance aligned with FTA regulations
- Mainland and freezone entity support
- QFZP and Small Business Relief assessment
- Registration deadline tracking
UAE Corporate Tax Support
FTA registration guidance, QFZP assessment, and compliance readiness for mainland and freezone companies.
Corporate Tax FAQs
What is the UAE corporate tax rate in 2026?
The standard UAE corporate tax rate is 9% on taxable profits exceeding AED 375,000 per year. Income up to AED 375,000 may qualify for 0% under Small Business Relief if eligibility conditions are met. Qualifying Free Zone Persons (QFZP) can access 0% on qualifying income.
Do freezone companies pay corporate tax?
Freezone companies are subject to corporate tax but may qualify for 0% on qualifying income if they meet QFZP substance, activity, and de minimis requirements. Non-qualifying income is taxed at 9% above the threshold.
When must UAE companies register for corporate tax?
Businesses must register with the Federal Tax Authority (FTA) within the deadline specified for their financial year. Late registration can result in penalties. Najoom assists with registration timing and documentation.
What is Small Business Relief in UAE corporate tax?
Small Business Relief allows qualifying UAE resident companies with revenue up to AED 3 million to elect 0% corporate tax on all taxable income, subject to conditions. It is designed to support SMEs during early growth stages.
Can Najoom help with corporate tax registration and compliance?
Yes. Najoom provides corporate tax registration, QFZP assessment support, bookkeeping alignment, and coordination with tax advisors to ensure your UAE entity is compliant from day one.