UAE Corporate Tax Explained: What Business Owners Need to Know

The UAE introduced a federal Corporate Tax to align with global standards while keeping the country highly competitive. The headline rate is 9% — still one of the lowest in the world — and there are important reliefs for smaller businesses and qualifying free zone companies.

The basics

• 0% on taxable income up to the AED 375,000 threshold.
• 9% on taxable income above the threshold.
• Registration with the Federal Tax Authority is mandatory for taxable persons.

Free zone qualifying income

Qualifying Free Zone Persons may benefit from a 0% rate on qualifying income if they meet substance and other requirements. Getting this right requires careful structuring — and accurate accounting records.

Staying compliant

Compliance starts with proper bookkeeping and timely registration. We register your business, advise on your tax position, and manage filings so you avoid penalties and keep more of what you earn.