UAE Corporate Tax
Corporate Tax reached the UAE in 2023 and it rewards businesses that treat it as a structural question, not a year-end formality. We design the position, document it, file it, and stand behind it if the FTA asks questions.
Small Business Relief has been extended to eligible periods ending on or before 31 December 2029. See the updated guide and our September tax updates.
The rates, in one view
| Rate | Applies to |
|---|---|
| 0% | Taxable income up to AED 375,000, and the Qualifying Income of a Qualifying Free Zone Person. |
| 9% | Taxable income above AED 375,000, and the non-qualifying income of free zone entities. |
| 15% | Domestic Minimum Top-up Tax for multinational groups with global revenue of EUR 750 million or more, under the OECD Pillar Two framework. |
Who has to comply
Registration applies to juridical persons incorporated or managed in the UAE, foreign entities with a UAE Permanent Establishment, and natural persons whose UAE business turnover exceeds AED 1 million in a calendar year. Free zone entities register and file even when they expect a 0% outcome. The return and payment are due within nine months of the financial year end.
Where businesses get it wrong
The mistakes we correct most often are structural: free zone entities assuming the 0% rate applies to everything they earn, groups missing the election window for tax grouping, related-party transactions priced with no arm's length support, and accounting records that cannot produce a defensible taxable income calculation. Each of these is cheap to fix before filing and expensive to fix after an FTA audit begins.
What we do
- Corporate Tax registration, return preparation, and filing
- Free Zone Qualifying Income assessment and documentation
- Tax group formation and optimisation
- Transfer Pricing analysis and related party documentation
- Permanent Establishment risk review for foreign entities
- Small Business Relief eligibility assessment
- Tax Residency Certificates and treaty positions
- Taxable income computations and adjustment schedules
Free zone positions deserve particular care. Our guide to Free Zone Qualifying Income explains the conditions in plain language, and our review of FTA private clarifications shows how the authority is applying the wider law in practice.
Common questions
When is the return due?
Within nine months of the end of the financial year, together with payment. A December year end means filing by the end of the following September.
What is Small Business Relief?
An election available to UAE resident businesses with revenue of AED 3 million or less in the relevant period, treating them as having no taxable income for that period. It interacts with loss carry-forward and other positions, so it should be assessed rather than assumed.
Does a free zone licence guarantee the 0% rate?
No. The 0% rate applies only to Qualifying Income, and only while every condition of Qualifying Free Zone Person status is met. Failing a condition can remove the benefit for the current and following tax periods.
The positions on this page were last reviewed against published legislation and official guidance on .
- Federal Tax Authority — Corporate Tax legislation, decisions and guidance
- Ministry of Finance — Corporate Tax
- Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, as amended (PDF)
UAE tax law changes, and guidance is amended between reviews. This page is general information, not advice on your own position, and the official sources above prevail over anything stated here. Check the current position before acting, or ask us.
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