Corporate Tax in the UAE

Rates

Source: UAE Government Portal: Corporate tax; UAE Ministry of Finance: Corporate Tax^1,2

Who is in scope

• Companies incorporated in the UAE, on the mainland or in a free zone, and foreign companies effectively managed from the UAE.
• Foreign companies with a permanent establishment or UAE-sourced income.
• Individuals running a business, but only when total business turnover exceeds AED 1 million in a calendar year. Salaries, personal investment income and real estate investment income are outside corporate tax.
• Exempt persons include government entities, extractive businesses, qualifying public benefit entities, pension funds and qualifying investment funds, some only after notifying the Ministry or applying to the FTA.

Source: UAE Government Portal: Corporate tax; Federal Tax Authority: Basis of taxation for natural persons^1,4

Small business relief

A resident business whose revenue is AED 3 million or less in the tax period and in every earlier period can elect to be treated as having no taxable income. The Ministry of Finance extended the relief in August 2026 to tax periods ending on or before 31 December 2029. Once revenue passes AED 3 million in any period, the relief is lost for good. The election is made in the return, which is still due.^3,5

Registration, returns and penalties

• Every taxable person registers with the FTA on EmaraTax, including companies that expect to pay 0%.
• Late registration carries an administrative penalty of AED 10,000.
• The return and any tax due are filed and paid within nine months of the end of the tax period. A tax period is normally the company’s financial year.
• Transactions with related parties follow the arm’s length rules; see transfer pricing.

Source: Federal Tax Authority: Waiver of the late registration penalty (CTP006, PDF); Federal Tax Authority: Corporate Tax Registration^6,7