Guide
UAE corporate tax for new businesses
The short answer
UAE corporate tax applies at 0% on taxable income up to AED 375,000 and 9% on taxable income above that. Taxable income is calculated from accounting profit after adjustments, so it is not the same as revenue. Registration and filing obligations apply to taxable persons regardless of whether tax is payable.
The most common misunderstanding is treating the AED 375,000 figure as a revenue threshold. It applies to taxable income after allowable deductions.
The second most common is assuming free-zone registration removes the regime entirely. It does not.
Rates and thresholds
Headline UAE corporate tax positions.
Taxable income up to AED 375,000
- Rate
- 0%
- Note
- Applies to taxable income, not revenue
Taxable income above AED 375,000
- Rate
- 9%
- Note
- Standard rate on the excess
Qualifying Free Zone Person — qualifying income
- Rate
- 0%
- Note
- Only where all conditions are met
Qualifying Free Zone Person — non-qualifying income
- Rate
- Standard rates
- Note
- Conditions can be lost
| Position | Rate | Note |
|---|---|---|
| Taxable income up to AED 375,000 | 0% | Applies to taxable income, not revenue |
| Taxable income above AED 375,000 | 9% | Standard rate on the excess |
| Qualifying Free Zone Person — qualifying income | 0% | Only where all conditions are met |
| Qualifying Free Zone Person — non-qualifying income | Standard rates | Conditions can be lost |
Registration and filing
- Taxable persons register with the Federal Tax Authority and receive a tax registration number.
- Returns are filed for each tax period within the deadline set by the FTA.
- Filing is required even where the tax payable is zero.
- Late registration or filing can attract penalties.
Records you must keep
Accounting records and supporting documentation must be maintained for the retention period set by the applicable rules. In practice this means proper bookkeeping from day one, not a reconstruction before the first deadline.
VAT is separate
VAT is a different tax with its own registration thresholds and filing cycle. Whether you must register depends on your taxable supplies measured against the FTA's mandatory and voluntary thresholds.
