The short answer
UAE corporate tax is 0% on taxable profit up to AED 375,000 and 9% above it. Every UAE company, including every Free Zone company, must register with the Federal Tax Authority (FTA): new companies within 3 months of incorporation. You file a return and pay within 9 months of your year end. Late registration costs AED 10,000.
UAE corporate tax rates
Corporate tax applies to financial years starting on or after 1 June 2023. The rate depends on how much taxable profit you make and where your company is.
| Who | Rate |
|---|---|
| Taxable profit up to AED 375,000 | 0% |
| Taxable profit above AED 375,000 | 9% on the part above |
| Qualifying Free Zone Person | 0% on qualifying income, 9% on other income |
| Individuals with business turnover above AED 1m a year | Same 0% / 9% rates |
| Multinational groups with revenue of EUR 750m+ | 15% minimum (top-up tax) |
Example: your company makes a taxable profit of AED 500,000. The first AED 375,000 is taxed at 0%. The remaining AED 125,000 is taxed at 9%, so you pay AED 11,250.
Taxable profit starts from the profit in your accounts. Some costs are added back (for example 50% of client entertainment, fines and penalties) and some income is exempt (for example most dividends from other companies). That is why clean monthly books matter: they decide what you pay.
Looking for the 5% tax? That is VAT, a different tax. See VAT registration in the UAE.
Who must register for corporate tax
- Every company licensed in the UAE, mainland or Free Zone, whether it makes a profit or not.
- Every Free Zone company, even if it expects to pay 0%.
- Dormant companies that still hold a licence.
- Individuals (freelancers, sole traders) whose business turnover goes above AED 1 million in a calendar year. Salary, personal investments and rent from personal property do not count.
- Foreign companies managed from the UAE or with a permanent establishment here.
Registration deadlines and how to register
| Who | Register by |
|---|---|
| Company incorporated on or after 1 March 2024 | Within 3 months of incorporation |
| Individual with turnover above AED 1m | 31 March of the following year |
| Foreign company managed and controlled in the UAE | 3 months after its financial year end |
| Non-resident with a permanent establishment | 6 months after it starts |
Registration is done online on EmaraTax, the FTA portal. You get a Tax Registration Number (TRN) for corporate tax.
Create the EmaraTax account
One login for the company, used later for VAT too.
Upload the documents
Trade licence, memorandum of association, passport and Emirates ID of the owners and the authorised signatory, and proof that the signatory can act for the company.
Fill in the application
Company details, financial year, business activities, owners and related parties.
Receive your TRN
The FTA reviews the application and issues the corporate tax registration certificate.
When we set up your company or keep your books, we do this for you. For other companies we quote a small one-off fee on a free call.
Filing your return and paying the tax
You file one corporate tax return a year on EmaraTax, within 9 months of the end of your financial year. The tax is paid by the same date.
- Financial year ending 31 December 2025: return and payment were due by 30 September 2026.
- Financial year ending 31 December 2026: due by 30 September 2027.
- There is no general extension of the deadline.
A return is needed even when the tax due is zero: for Free Zone companies at 0%, companies using Small Business Relief and dormant companies.
Corporate tax penalties
These are the main fines in Cabinet Decision No. 75 of 2023, as amended. Most of them come from missed dates, so they are avoidable.
| What went wrong | Penalty |
|---|---|
| Late registration | AED 10,000 |
| Late return | AED 500 a month for the first 12 months, then AED 1,000 a month |
| Late payment | 14% a year on the unpaid tax, charged monthly |
| Missing or incomplete records | AED 10,000 (AED 20,000 if repeated within 24 months) |
| Not updating your tax record (e.g. new address, new owner) | AED 1,000 (AED 5,000 if repeated) |
| Late deregistration | AED 1,000, then AED 1,000 a month, up to AED 10,000 |
| Wrong return, corrected later | AED 500, plus 1% a month on the tax difference |
The late registration waiver
The FTA cancels the AED 10,000 late registration penalty if you file your first return within 7 months of the end of your first tax period (instead of the usual 9). It is applied automatically, and a penalty already paid is credited back to your EmaraTax account. More than 68,600 businesses had used it by May 2026. The FTA has not published an end date, so we check your case before you rely on it.
Small Business Relief: no tax if revenue is AED 3m or less
Small Business Relief lets a small company be treated as having no taxable income. In August 2026 the Ministry of Finance extended it to tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131 of 2026).
- Revenue must be AED 3,000,000 or less in the current period and in every period since June 2023. One year above the line ends it for good.
- It is not automatic: you choose it on every return. You still register and file.
- Losses from a year where you use it cannot be carried forward.
- Qualifying Free Zone Persons and members of very large groups (AED 3.15bn+ revenue) cannot use it.
For a company close to the AED 3m line, or one with losses to carry forward, the right choice is not always obvious. We work it out with you before each return.
Free Zone companies: when you pay 0%
A Free Zone company pays 0% only if it is a Qualifying Free Zone Person. Otherwise it pays the normal 0% / 9% rates like a mainland company. To qualify, the company must:
- have real substance in the Free Zone (staff, assets and spending that match its activity)
- earn qualifying income, such as most business with other Free Zone companies or with clients outside the UAE
- keep non-qualifying income at or below 5% of total revenue or AED 5m, whichever is lower
- follow transfer pricing rules for deals with related parties
- prepare audited financial statements every year
- not choose to be taxed under the normal regime
If one condition fails, all income is taxed at 9% for that year, and the company can stay out of the 0% regime for the following years too. Many small Free Zone companies are better off with the normal rates and Small Business Relief. We check which route saves you more.
Setting up? See Free Zone company setup.
When you need audited financial statements
Under Ministerial Decision No. 84 of 2025 (tax periods from 1 January 2025), audited financial statements are required if:
- your revenue is above AED 50 million, or
- your company is a Qualifying Free Zone Person, whatever its revenue, or
- your company is part of a tax group.
Some Free Zones also ask for financial statements before they renew your licence. IFZA, for example, has required them for renewals since 30 September 2025.
Keep your records for 7 years
The law requires you to keep your accounting records and supporting documents for 7 years after the end of each tax period: invoices, receipts, bank statements, contracts and your financial statements. Missing records cost AED 10,000. Our clients' books and documents are stored for them every month, so nothing is lost when a tax officer asks.
How we handle corporate tax for you
Most fines hit owners who thought someone else was watching the dates. With us, someone is.
Registration
- We register your company on EmaraTax and get your TRN
- Free in every monthly accounting plan
- A small one-off fee for other companies
Every month
- Books closed and bank accounts reconciled, every currency
- Monthly report by the 25th
- We watch your VAT threshold and your SBR limit
Every year
- Taxable profit worked out from clean books
- SBR or Free Zone 0% checked before filing
- Corporate tax return prepared and sent to you for approval
Corporate tax registration and your yearly return are included in every monthly accounting plan, for one fixed price confirmed on your free call. Dormant company? We prepare its return too.
Sources
Rules checked on 28 October 2026. Tax rules change, so we re-check them before every filing season.
- Federal Tax Authority: corporate tax
- Ministry of Finance: Cabinet Decision No. 75 of 2023 (penalties)
- FTA: late registration penalty waiver (14 May 2026)
- WAM: Small Business Relief extended to 2029 (7 August 2026)
This page explains the rules in plain English. It is not tax advice for your company: book a free call and we will look at your case.