Tax
Taxes in the UAE
The UAE taxes business profits and consumption, not personal income. Companies pay 9% corporate tax on taxable income above AED 375,000, sales carry 5% VAT, and individuals pay no income tax on salaries.
Company taxes
| Income | Rate |
|---|---|
| Taxable income up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
| Qualifying income of a Qualifying Free Zone Person | 0% |
| Groups with global revenue of €750 million or more | Topped up to an effective 15% |
| Individuals with business turnover above AED 1 million | 0% / 9% |
Source: UAE Government Portal: Corporate tax; UAE Ministry of Finance: Domestic Minimum Top-up Tax1,5
Small business relief
A resident business with revenue of AED 3 million or less in the tax period and every earlier period can elect to be treated as having no taxable income. The relief now runs to tax periods ending on or before 31 December 2029. The return is still due.3
Free zone companies
- 0% applies only to qualifying income and only while the company keeps adequate substance, audited accounts and transfer pricing records.
- Non-qualifying revenue may not exceed 5% of total revenue or AED 5 million, whichever is lower.
- Missing a condition means the standard rates for that period and the next four.
Source: Federal Tax Authority: Basic tax information bulletin, Free Zone Person4
VAT, excise and customs
| VAT, standard rate | 5% since 1 January 2018 |
|---|---|
| VAT, zero-rated | Exports outside the GCC, international transport, investment-grade precious metals |
| VAT registration | Compulsory above AED 375,000 over 12 months; voluntary above AED 187,500 |
| Excise tax | 100% on tobacco and energy drinks |
| Customs duty | 5% of CIF value on most goods from outside the GCC |
Source: UAE Ministry of Finance: Value Added Tax; UAE Government Portal: Taxation; Federal Tax Authority: Corporate Tax Registration2,7,8
Individuals
- No personal income tax on salaries, personal investment income or real estate investment income.
- Individuals pay VAT on most purchases.
Source: UAE Government Portal: Corporate tax; UAE Government Portal: Taxation1,7
Deadlines and treaties
- Every taxable person registers on the FTA’s EmaraTax platform; late registration costs AED 10,000.
- The corporate tax return is due within nine months of the end of the tax period.
- The Ministry of Finance reports 137 double taxation agreements; a UAE Tax Residency Certificate is usually needed to use one.
Source: Federal Tax Authority: Corporate Tax Registration; UAE Ministry of Finance: Double Taxation Agreements8,6
Sources
- UAE Government Portal: Corporate tax
- UAE Ministry of Finance: Value Added Tax
- UAE Ministry of Finance: Extension of Small Business Relief until 31 December 2029 (7 August 2026)
- Federal Tax Authority: Basic tax information bulletin, Free Zone Person (PDF)
- UAE Ministry of Finance: Domestic Minimum Top-up Tax
- UAE Ministry of Finance: Double Taxation Agreements
- UAE Government Portal: Taxation
- Federal Tax Authority: Corporate Tax Registration
Figures checked 21 October 2026. Prepared by Invest-Emirates.ae for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.