Dubai has more registered companies than any other emirate, and the widest spread of licence types. A Business Bay consultancy on a DED mainland licence, a DMCC commodities trader in a designated zone and a Meydan Free Zone e-commerce seller are all Dubai businesses — and all three face different Corporate Tax and VAT positions. Getting the classification right, before the return is filed, is most of the work.
What every Dubai business owes, whatever the licence
Corporate Tax registration is mandatory for every Dubai company holding a commercial licence, regardless of profit. Registration is not triggered by earnings; it is triggered by the licence. Mainland Dubai companies then pay 0% on the first AED 375,000 of taxable income and 9% above it. Free zone entities must test their Qualifying Free Zone Person status for each tax period rather than assume the 0% rate carries over. VAT registration becomes mandatory once taxable turnover passes AED 375,000 in a rolling twelve months, and is available voluntarily from AED 187,500.
Mainland or free zone: the Dubai split that decides your bill
Dubai mainland businesses licensed by the Department of Economy and Tourism are taxed on the standard basis and can trade freely across the UAE. Free zone businesses in DMCC, DIFC, Meydan, Dubai South, IFZA and the rest can access a 0% rate, but only on qualifying income, and only while they meet the substance and de minimis conditions. Income from the Dubai mainland is usually excluded income, and breaching the de minimis threshold disqualifies the entity for that tax period and the four that follow. This is where most Dubai free zone companies get an unpleasant surprise.
Deadlines that apply to Dubai businesses
The Corporate Tax return and payment are both due nine months after the end of the tax period, so a Dubai company with a 31 December year-end files by 30 September. VAT returns are due 28 days after the end of each tax period, monthly or quarterly depending on how the FTA assigned you. Records must be retained for seven years. Our deadline calculator works out your own dates from your financial year-end, and the VAT threshold checker tells you whether registration is already mandatory.
Where we work in Dubai
We support businesses across the emirate, with dedicated pages for Business Bay, Downtown Dubai, DIFC, DMCC, JLT, Dubai Marina, Deira, Bur Dubai, Al Quoz, Meydan, Dubai Hills and JVC. Work is handled remotely or on site, and filings go through our FTA-registered partner network.
Frequently asked questions
Do all Dubai companies have to register for Corporate Tax?
Yes. Corporate Tax registration is mandatory for every juridical person holding a Dubai commercial licence, including free zone companies and companies making no profit. Registration is driven by the licence, not by earnings, and late registration carries an AED 10,000 penalty.
Do Dubai free zone companies pay 0% Corporate Tax?
Only on qualifying income, and only while they satisfy the Qualifying Free Zone Person conditions for that tax period. Income earned from mainland Dubai customers is generally excluded income, and breaching the de minimis threshold removes the 0% rate for that period and the following four. Free zone status must be tested every year.
When is the Dubai corporate tax filing deadline?
Nine months after the end of your tax period. A Dubai company with a financial year ending 31 December 2025 must file and pay by 30 September 2026. There is no extension for a first return.
What is the VAT registration threshold for a Dubai business?
Mandatory registration applies once taxable supplies and imports exceed AED 375,000 over the previous twelve months, or are expected to in the next thirty days. Voluntary registration is available from AED 187,500 and is often worth taking where a business carries recoverable input VAT.