UAE corporate tax
Federal corporate tax applies to financial years starting on or after 1 June 2023. It is low by international standards, but compliance is mandatory for every company.
Rates
| Taxable income | Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
| Qualifying income of a qualifying free zone person | 0% |
Large multinational groups within the global minimum tax rules are subject to a domestic minimum top-up tax.
Who is subject to it
- All UAE companies, mainland and free zone, and UAE branches of foreign companies
- Individuals carrying on business in the UAE above a turnover threshold
- Foreign companies with a permanent establishment in the UAE
Key reliefs and exemptions
- Free zone regime: 0% on qualifying income for a Qualifying free zone person.
- Small business relief: resident businesses with revenue of AED 3 million or less may elect to be treated as having no taxable income, for tax periods ending on or before 31 December 2026. See Small business relief.
- Participation exemption: qualifying dividends and gains from shareholdings can be exempt.
- Group relief and transfers within qualifying groups.
Obligations
- Register with the Federal Tax Authority, even if no tax is due. See Corporate tax registration.
- File a return within nine months of the end of each tax period.
- Keep accounting records for at least seven years.
- Prepare financial statements; audited statements are required in some cases, including for qualifying free zone persons.
- Follow transfer pricing rules for related-party transactions.
Penalties
Late registration, late filing and incorrect returns attract administrative penalties. See Corporate tax penalties.
Common questions
Is there personal income tax in the UAE?
No. Individuals are not taxed on employment income, investment income or personal property income in the UAE.
Is corporate tax charged on dividends I take out?
There is no withholding tax on dividends paid by UAE companies. Your home country may tax them if you are resident there.
Official sources
We check our guidance against these official sources. Always confirm current fees and rules before acting.