Tax guides · Corporate tax
UAE corporate tax guide
UAE corporate tax applies to taxable income at 0% up to AED 375,000 and 9% above it. Free zone companies can pay 0% on qualifying income if they meet the conditions every period. This guide explains the parts that most often decide the final number.
What are the UAE corporate tax rates and thresholds?
| Item | Figure | Source |
|---|---|---|
| Rate up to AED 375,000 of taxable income | 0% | Cabinet Decision No. 116 of 2022 |
| Rate above AED 375,000 | 9% | Cabinet Decision No. 116 of 2022 |
| Qualifying income of a Qualifying Free Zone Person | 0%, if all conditions are met | Federal Decree-Law No. 47 of 2022; Cabinet Decision No. 100 of 2023 |
| Non-qualifying revenue limit (de minimis) | 5% of total revenue or AED 5 million, whichever is lower | Ministerial Decision No. 229 of 2025, Article 3 |
| Losing Qualifying Free Zone Person status | From the start of the tax period in which a condition is not met, and for the next four tax periods | Ministerial Decision No. 229 of 2025, Article 5(2) |
| Small Business Relief | Revenue up to AED 3 million, tax periods ending on or before 31 December 2029 | Ministerial Decision No. 73 of 2023, as amended by Ministerial Decision No. 131 of 2026 |
What decides how much corporate tax you pay?
When is the corporate tax return due?
Within 9 months of the end of the tax period (Federal Decree-Law No. 47 of 2022, Article 53(1)). For a tax period that ends on 31 December, that is 30 September of the following year. You or your registered tax agent file through EmaraTax.
How is taxable income worked out?
You start from accounting profit in your financial statements and adjust it: add back non-deductible items such as fines and part of entertainment costs, remove exempt income, apply losses brought forward within the limits, and correct any related-party pricing that is not at arm's length.
Does my free zone company pay 0%?
Only on qualifying income, and only while you meet the Qualifying Free Zone Person conditions: adequate substance in the free zone, qualifying activities, non-qualifying revenue within the de minimis limit, audited financial statements and arm's length pricing. Fail one and the status is lost from the start of that tax period and for the next four (Ministerial Decision No. 229 of 2025).
Should we elect Small Business Relief?
If your revenue is AED 3 million or less, the relief treats you as having no taxable income for the period. It is simple, but tax losses and net interest expenditure from that period cannot be carried forward (Ministerial Decision No. 73 of 2023, Articles 4 and 5), so it is not always the better choice.
What about transactions with owners and group companies?
Transactions with related parties and connected persons must be priced at arm's length. Payments to owners, directors and their relatives for services can also be limited. Keep agreements and evidence for each one.
Tools and references
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Last reviewed: 22 October 2026 · Reviewed by Muhammad Imran, ACMA
General information only, not legal or tax advice.
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