Key Takeaways
- 1UAE corporate tax rate is 9% on taxable income exceeding AED 375,000
- 2Free zone qualifying companies can maintain 0% tax on qualifying income
- 3First filing deadlines are approaching — most companies must file by end of 2026
- 4Non-compliance penalties start at AED 10,000 and can reach AED 50,000+
Overview of UAE Corporate Tax
The UAE introduced federal corporate tax effective June 2023. The standard rate is 9% on taxable income exceeding AED 375,000. This makes the UAE one of the most competitive tax jurisdictions globally.
Key Tax Rates
- 0% on taxable income up to AED 375,000
- 9% on taxable income above AED 375,000
- 0% for qualifying free zone businesses on qualifying income
Free Zone Benefits
Qualifying free zone businesses can enjoy 0% corporate tax on qualifying income, provided they maintain adequate substance and comply with transfer pricing rules.
Filing Requirements
All taxable persons must register with the Federal Tax Authority (FTA), file annual tax returns, and maintain proper accounting records.
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Frequently Asked Questions
Qualifying free zone companies maintain a 0% rate on qualifying income (income earned from outside UAE or from other free zone entities). However, they must still register, file returns, and may pay 9% on non-qualifying income.
Companies must file within 9 months from the end of their financial year. For companies with a financial year ending December 2025, the filing deadline is September 2026.
Yes, registration is mandatory for all businesses regardless of income. The AED 375,000 threshold means you pay 0% up to that amount, but registration and filing are still required.
Oki-Doki Team
The Oki-Doki team has helped 10,000+ clients with visa applications, business setup, and relocation to the UAE since 2015. Licensed and approved by UAE authorities.
