Corporate Tax in the UAE is a federal tax on business profits, administered by the Federal Tax Authority (FTA). It applies to financial years starting on or after 1 June 2023. The standard rate is 9% on taxable profit above AED 375,000 and 0% on profit up to that amount, so most small businesses pay little or nothing while still being required to register and file.
Who must register for Corporate Tax?
Registration is mandatory for almost every business operating in the UAE, including mainland companies, free zone companies, and many freelancers and sole proprietors with significant business turnover. You must register even if you expect to pay 0% — being on the zero band or holding free zone status does not remove the obligation to register and file an annual return.
How Corporate Tax is calculated
- 0% on taxable income up to AED 375,000.
- 9% on taxable income above AED 375,000.
- Small Business Relief can ease the burden for businesses with revenue under AED 3,000,000 for eligible periods.
- Free zone companies meeting strict conditions may keep a 0% rate on qualifying income — see our Free Zones hub.
Deadlines and penalties
You must register by the deadline set by the FTA and file your return within nine months of the end of your financial year. Missing the registration window triggers a fixed administrative penalty of AED 10,000, so acting early matters. Track your dates in our Deadlines & Penalties hub and set free alerts on the reminders page.
Estimate your position and get help
Use the free Corporate Tax calculator to estimate what you may owe in minutes. When you are ready, we manage the whole process for you and route the regulated filing through our network of FTA-registered partner tax agencies. See also the VAT hub and the E-Invoicing hub.
Headline figures are general guidance — confirm the current rules and your specific position with an FTA-registered tax agency before acting.