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UAE Corporate Tax is a federal tax applied to the taxable income of businesses and other persons covered by the UAE Corporate Tax Law. Introduced under Federal Decree-Law No. 47 of 2022, the regime applies to relevant Tax Periods beginning on or after 1 June 2023.
This UAE Corporate Tax Guide 2026 explains the standard 0% and 9% tax rates, the AED 375,000 taxable-income threshold, Small Business Relief, Free Zone Corporate Tax rules, Qualifying Free Zone Person (QFZP) requirements, FTA registration, tax return filing and ongoing compliance.
Whether you operate a Mainland company, a Free Zone business or a qualifying individual business activity, understanding your Corporate Tax obligations is important for maintaining compliance.
| Corporate Tax Area | UAE Corporate Tax Rule |
|---|---|
| Standard 0% Rate | Taxable income up to and including AED 375,000 |
| Standard 9% Rate | Taxable income exceeding AED 375,000 |
| Small Business Relief | Available to eligible Resident Persons meeting the applicable revenue and other conditions |
| Free Zone QFZP | 0% on Qualifying Income and 9% on taxable income that is not Qualifying Income |
| Natural Person Registration | Business turnover exceeding AED 1 million in a calendar year |
| Tax Return Deadline | Within nine months after the end of the relevant Tax Period |
| Tax Authority | Federal Tax Authority (FTA) |
| Registration Platform | EmaraTax |
The standard UAE Corporate Tax regime applies two main rates based on taxable income. These rates apply to standard taxable persons, subject to the specific rules and reliefs under the Corporate Tax Law.
A 0% Corporate Tax rate applies to the portion of taxable income that does not exceed AED 375,000. This threshold relates to taxable income, not annual business revenue or turnover. Businesses should calculate their taxable income after applying the relevant adjustments and provisions of the Corporate Tax Law.
A 9% Corporate Tax rate applies to the portion of taxable income exceeding AED 375,000. For example, if a business has taxable income of AED 1 million, the first AED 375,000 is subject to the 0% rate, while the remaining AED 625,000 is subject to the 9% rate.
Taxable income generally starts with the accounting net profit or loss reported in the financial statements. Adjustments are then made for items specified under the Corporate Tax Law. These adjustments may include exempt income, non-deductible expenses, related-party transactions, tax reliefs and other applicable tax adjustments.
Small Business Relief is a tax relief available to eligible Resident Persons under the UAE Corporate Tax regime. It is separate from the standard AED 375,000 taxable-income threshold.
For relevant Tax Periods ending on or before 31 December 2026, an eligible Resident Person may elect for Small Business Relief where its revenue does not exceed AED 3 million in the relevant Tax Period and in each applicable previous Tax Period. Where a valid election is made, the eligible business is treated as having no taxable income for that Tax Period.
Important: the current provision ends with 2026 Tax PeriodsEligible businesses must register for Corporate Tax and make the Small Business Relief election in their Corporate Tax Return for each relevant Tax Period. The current Small Business Relief provision covers Tax Periods ending on or before 31 December 2026. Businesses should monitor future Ministry of Finance and FTA announcements for any changes to the relief after this date.
Free Zone companies are within the UAE Corporate Tax regime. However, a Free Zone Person that meets the applicable conditions may qualify for the special QFZP tax treatment. A Qualifying Free Zone Person can benefit from 0% Corporate Tax on Qualifying Income and 9% Corporate Tax on taxable income that is not Qualifying Income. A Free Zone licence alone does not automatically guarantee 0% Corporate Tax treatment. Businesses must review their activities, income sources and compliance requirements.
A Qualifying Free Zone Person is a Free Zone entity that satisfies the conditions established under UAE Corporate Tax legislation to benefit from the QFZP tax regime.
A QFZP may receive 0% Corporate Tax treatment on income that meets the Qualifying Income requirements. Taxable income that does not qualify for the special treatment is generally subject to the 9% rate. A QFZP cannot use the standard AED 375,000 taxable-income threshold to obtain a 0% rate on its non-qualifying taxable income.
Businesses and other persons subject to UAE Corporate Tax must register with the Federal Tax Authority and obtain a Corporate Tax Registration Number according to the applicable rules.
UAE Mainland companies that are subject to Corporate Tax generally need to register with the FTA, obtain a Corporate Tax Registration Number and meet their filing obligations.
Free Zone companies also fall within the Corporate Tax regime. Registration obligations apply even where a company intends to qualify for the 0% QFZP rate.
Foreign companies may have UAE Corporate Tax obligations where they have a Permanent Establishment, a UAE nexus or another taxable presence under the applicable rules. The registration requirements and deadlines depend on the company's circumstances.
A natural person conducting a business or business activity in the UAE becomes subject to Corporate Tax registration where their annual business turnover exceeds AED 1 million in a Gregorian calendar year. Salary and wages, personal investment income and real estate investment income are excluded from this turnover test. The AED 1 million registration threshold for natural persons is different from the AED 3 million revenue condition for Small Business Relief.
Corporate Tax registration is completed through the Federal Tax Authority's EmaraTax platform.
Registration deadlines depend on the taxpayer's legal form, residence status, incorporation date and taxable presence.
Older companies should check their own FTA timelineCompanies established before 1 March 2024 were subject to registration timelines based on their licence issuance month. Businesses should check their registration status and the applicable FTA decision rather than assume that one deadline applies to every company.
Corporate Tax registration is only the first step. Taxable Persons must also prepare and submit their Corporate Tax Returns and pay any Corporate Tax due within the applicable statutory deadline.
A Taxable Person must generally submit its Corporate Tax Return and pay the Corporate Tax due within nine months from the end of the relevant Tax Period. Eligible businesses electing for Small Business Relief must also submit the required simplified Tax Return within the statutory timeframe.
Accurate accounting records are important for calculating taxable income, preparing Corporate Tax Returns and supporting information submitted to the FTA. Businesses are generally required to retain relevant records and documents for seven years following the end of the Tax Period to which they relate. Certain businesses, including QFZPs, may have additional financial statement and audit requirements.
Transfer pricing rules apply to transactions between Related Parties and Connected Persons. These transactions must generally follow the arm's length principle, meaning their terms should reflect those that would apply between independent parties in comparable circumstances. The documentation requirements depend on the business and applicable thresholds. Not every business is automatically required to prepare a Master File and Local File.
Mainland companies generally fall under the standard UAE Corporate Tax regime unless a specific exemption or relief applies. For standard taxable persons, the 0% rate applies to taxable income up to and including AED 375,000, while the 9% rate applies to the portion exceeding AED 375,000. Corporate Tax is calculated on taxable income rather than simply on the company's turnover. Mainland businesses should maintain accurate accounting records, review allowable deductions and meet their FTA registration and filing obligations.
Corporate Tax and Value Added Tax are two separate tax systems in the UAE. A business may have obligations under both regimes depending on its activities and circumstances. Registering for one tax does not automatically satisfy the registration or compliance requirements of the other.
Corporate Tax is generally calculated on the taxable income of a business or other taxable person. Registration, tax calculations and return filing are governed by UAE Corporate Tax legislation.
VAT is a transaction-based tax applied to taxable supplies and imports under UAE VAT legislation. VAT registration and return filing follow separate rules and thresholds.
For VAT registration, filing and record-keeping support, see VAT Compliance Services in UAE.
Najoom Corporate Services provides guidance and coordination to help UAE businesses understand their Corporate Tax obligations and prepare for relevant FTA requirements.
Assistance with preparing Corporate Tax registration information and coordinating the application process through EmaraTax.
Support reviewing Free Zone business activities, income sources and relevant requirements for Qualifying Free Zone Person treatment.
Review of business revenue and eligibility conditions to help determine whether Small Business Relief may be available.
Support organizing financial records and accounting information needed for Corporate Tax calculations and compliance.
Assistance with Corporate Tax Return preparation and coordination with relevant tax professionals.
Guidance on registration, record keeping, filing deadlines and continuing Corporate Tax compliance requirements.
For standard taxable persons, the 0% rate applies to taxable income up to and including AED 375,000. The 9% rate applies to the portion exceeding AED 375,000.
Free Zone companies fall within the UAE Corporate Tax regime. A company that meets the QFZP conditions may receive 0% treatment on Qualifying Income and 9% treatment on taxable income that is not Qualifying Income.
Small Business Relief is an optional relief for eligible Resident Persons with revenue not exceeding AED 3 million in the relevant and applicable previous Tax Periods. The current provision applies to relevant Tax Periods ending on or before 31 December 2026, subject to the eligibility conditions.
It is the taxable-income threshold for the standard 0% Corporate Tax rate. The portion of taxable income exceeding AED 375,000 is generally subject to 9%.
UAE companies and other persons subject to Corporate Tax must register according to the applicable FTA rules. This includes relevant Mainland and Free Zone entities, foreign businesses with a taxable UAE presence and natural persons who exceed the applicable business turnover threshold.
The deadline depends on the taxpayer's legal form and circumstances. For example, UAE juridical persons established on or after 1 March 2024 generally have three months from their incorporation or establishment date. Natural persons meeting the AED 1 million turnover condition generally register by 31 March of the following calendar year.
A Qualifying Free Zone Person is a Free Zone entity that meets the applicable conditions for special Corporate Tax treatment, including adequate substance, Qualifying Income, transfer pricing compliance and other requirements.
A Corporate Tax Return and any tax due are generally required within nine months from the end of the relevant Tax Period.
Najoom can assist businesses with Corporate Tax registration guidance, QFZP assessment support, Small Business Relief reviews, accounting coordination and Corporate Tax filing support.
Understanding UAE Corporate Tax requirements can help your business prepare for registration, filing and ongoing compliance. Najoom Corporate Services can support Mainland and Free Zone businesses with Corporate Tax registration guidance, QFZP reviews, Small Business Relief assessments, accounting coordination and filing preparation. Share your business activity, company jurisdiction and tax-related questions to discuss the requirements that may apply to your business.