UAE Corporate Tax Compliance Guide
Everything you need to know about the 9% corporate tax, thresholds, exemptions, and filing deadlines.
1What is UAE Corporate Tax?
The UAE introduced corporate tax under Federal Decree-Law No. 47 of 2022, effective from June 1, 2023. The standard rate is 9% on taxable income exceeding AED 375,000.
- 0% on taxable income up to AED 375,000
- 9% on taxable income exceeding AED 375,000
- 0% on qualifying income of a Qualifying Free Zone Person (the AED 375,000 band does not apply to it)
2Who Must Register?
Must Register
- • Every UAE resident company, whatever its revenue or profit
- • Branches of foreign companies
- • Free Zone companies
- • Natural persons with business turnover > AED 1,000,000 in a calendar year
- • Non-residents with UAE permanent establishment
Generally Exempt
- • Government entities
- • Pension funds
- • Qualifying public benefit entities
- • Employment income
- • Personal investment income
3Key Deadlines
| Deadline | Requirement | Penalty |
|---|---|---|
| Registration | By your FTA deadline (new companies: 3 months from incorporation) | AED 10,000 |
| Tax Return | Within 9 months of tax period end | AED 500/month for 12 months, then AED 1,000/month |
| Payment | By the return deadline | 14% per year on unpaid tax, charged monthly* |
| Records | Maintain for 7 years | AED 10,000; AED 20,000 if repeated within 24 months |
The FTA has announced a waiver of the late registration penalty where the first return is filed within 7 months of the end of the first tax period. *The late payment rate was reported as harmonised by Cabinet Decision No. 129 of 2025. Confirm both on the FTA website. Figures last reviewed 2026-10-10.
4Free Zone Companies
A Free Zone company must register like any other company. If it qualifies as a Qualifying Free Zone Person (QFZP), it pays 0% on qualifying income and 9% on the rest. Main conditions:
Substance
Adequate assets, qualified employees and operating expenditure in the Free Zone.
De Minimis
Non-qualifying revenue must not exceed 5% of total revenue or AED 5,000,000, whichever is lower.
Compliance
Audited financial statements, transfer pricing rules, and no election for the standard regime.
Failing a condition removes QFZP status for that tax period and the following four, so all taxable income is taxed at standard rates.
5Small Business Relief
Resident businesses with revenue up to AED 3,000,000 in the tax period (and in every earlier period) may elect for Small Business Relief, treating their taxable income as zero. It is not available to QFZPs or to members of groups with revenue of AED 3,150,000,000 or more.
Note: This relief is available only for tax periods ending on or before 31 December 2026. Even with relief, registration and filing requirements still apply.
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