UAE corporate tax basics

Last verified: 2026-10-06

Summary

UAE corporate tax is administered by the Federal Tax Authority (FTA). It applies to a wide range of business profits, not only to companies. This guide summarises who is a Taxable Person, the rates the FTA publishes, and how registration works, using only pages on tax.gov.ae.

Who is subject to corporate tax

The FTA’s general corporate tax guide says corporate tax applies, in broad terms, to:

Juridical persons (such as corporations) incorporated in the UAE, and foreign juridical persons that are effectively managed and controlled in the UAE.
Non-resident juridical persons that have a Permanent Establishment in the UAE.
Non-Resident Persons deriving State Sourced Income, and non-resident juridical persons that have a nexus in the UAE through income from Immovable Property in the UAE.
Natural persons who conduct a Business or Business Activities in the UAE and have a Turnover of over AED 1,000,000 per Gregorian calendar year from it.

The FTA’s Resident Juridical Person page states that UAE-incorporated entities include both mainland and free zone entities. The FAQs state that UAE corporate tax does not differentiate between nationality or residence.

The tax applies to financial years starting on or after 1 June 2023.

Rates

As of 2026-10-06, the FTA’s general corporate tax guide states that corporate tax is generally imposed on Taxable Income at these rates:

0% on the portion of Taxable Income not exceeding AED 375,000.
9% on the portion of Taxable Income exceeding AED 375,000.

Taxable Income is the accounting net profit or loss, with certain adjustments. Two special cases are published separately:

Small Business Relief: a Resident Person with revenue of AED 3,000,000 or less in both the current and all previous Tax Periods can elect for the relief, and is then treated as not having derived Taxable Income for that period. The FTA page says Qualifying Free Zone Persons cannot benefit, and neither can members of multinational groups with consolidated revenue exceeding AED 3.15 billion.
Qualifying Free Zone Persons: see this site’s separate guide on what a Qualifying Free Zone Person is.

Tax period, return and payment

A Taxable Person’s Tax Period is generally its Financial Year, the 12-month period for which financial statements are prepared. For a natural person it is the Gregorian calendar year. According to the FTA’s guide, the Tax Return must be filed, and any tax paid, within nine months from the end of the Tax Period.

How registration works

The FTA’s registration service page says:

All juridical persons subject to corporate tax must register with the FTA and obtain a Corporate Tax Registration Number.
Natural persons conducting business in the UAE with annual revenues exceeding AED 1 million must register. The page lists salaries, private investment income and real estate investment income as excluded income sources.
Registration is done through the EmaraTax platform: register an EmaraTax account, create a taxable person profile, then complete the registration application from the dashboard.
The page gives an estimated 25 minutes to submit and 20 business days for the FTA to process a complete application. The service is free of charge.
Documents listed include incorporation certificates, commercial registration, trade licences, and the Emirates ID and passport of any owner holding more than 25% and of authorised signatories.

The deadlines are set by FTA Decision No. (3) of 2024, which the FTA page names. This guide does not restate them; check the decision and the FTA service page for the date that applies to your entity. The FAQs also state that registration for corporate tax is required even if the person is already registered for VAT.

What it costs

The FTA lists corporate tax registration as free of charge. The tax itself depends on Taxable Income and the entity’s status. For the set-up, licence and registration costs of different company types, use the comparison tool on this site rather than relying on the figures in this guide.

Common pitfalls

Assuming a free zone company is outside corporate tax. The FTA states that free zone entities are UAE-incorporated entities and are within scope; the 0% rate for free zone entities applies only to Qualifying Income of a Qualifying Free Zone Person.
Treating VAT registration as covering corporate tax. They are separate registrations.
Missing the registration deadline. The FTA registration page states an administrative penalty of AED 10,000 for late registration, and describes a waiver initiative for qualified late registrants who submit their first tax return within 7 months of the end of their first Tax Period.
Overlooking natural persons. Sole establishments and individual partners can be Taxable Persons once turnover exceeds AED 1,000,000 in a calendar year.

Check the authority

Rates, thresholds, deadlines and penalties change, and individual circumstances differ. Check the Federal Tax Authority (tax.gov.ae) for the current position before acting.

Figures and details in this guide are as stated on the cited official pages as of 6 October 2026.

Sources

This information is general; rules and fees can change. Check current details with the relevant authority.

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