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Corporate tax in the UAE is a federal tax on business profits. The rate is 0% on taxable income up to AED 375,000 and 9% on the part above AED 375,000. Source: Federal Tax Authority and u.ae, corporate tax pages, checked .
DubaiAccountingFirms.com is an independent directory. It is not the Federal Tax Authority (FTA). This page is general information, not tax advice. Use it to understand the system, then check your own case with a qualified firm.
When was corporate tax introduced in the UAE, and which law sets it?
Corporate tax is governed by Federal Decree-Law No. 47 on the Taxation of Corporations and Businesses. It has been amended by Decree-Law 60, Decree-Law 40 and Decree-Law 28, the last effective . The law applies to tax periods starting on or after , so a company with a calendar financial year paid corporate tax for the first time on its year starting . Source: Ministry of Finance, consolidated corporate tax law, checked .
What is the corporate tax rate in the UAE?
| Taxable income | Rate |
|---|---|
| Up to AED 375,000 | 0% |
| The part above AED 375,000 | 9% |
| Qualifying Income of a Qualifying Free Zone Person | 0% |
| Other taxable income of a Qualifying Free Zone Person | 9% |
| Large multinational groups (top-up tax) | Minimum 15% |
Source: Federal Tax Authority and u.ae, corporate tax, checked .
The law sets the two bands. The amount sits in Cabinet Decision No. 116: the first AED 375,000 of taxable income is taxed at 0% in a tax period, even if you run more than one business. If someone splits one business into several to use the 0% band more than once, the FTA can treat it as an arrangement to get a tax benefit.
Source: Ministry of Finance, Cabinet Decision No. 116, Articles 2 and 3, checked .
The 15% top-up tax
The Domestic Minimum Top-up Tax (DMTT) is in Cabinet Decision No. 142, issued on . It covers fiscal years beginning on or after . It applies to UAE constituent entities of a multinational group with consolidated revenue of EUR 750 million or more in at least two of the four preceding fiscal years. Most local businesses are far below this level. Source: Federal Tax Authority, Cabinet Decision No. 142, checked .
Who pays corporate tax in the UAE?
A taxable person is either a resident person or a non resident person. Residents include UAE companies (free zone companies too), foreign companies managed and controlled in the UAE, and individuals who run a business in the UAE. Non residents are taxable if they have a permanent establishment or UAE sourced income. The full breakdown, with exempt persons, the AED 1 million test for individuals and tax groups, is on who pays corporate tax.
A taxable person with a 0% result still has duties. It must register, keep records and file a return.
What is a corporate tax period?
A tax period is the financial year, or part of it. The financial year is the calendar year or the 12 month period for which your financial statements are prepared. You can ask the FTA to change the start and end dates of your tax period. Source: Federal Decree-Law No. 47, Articles 57 and 58, checked .
What are the key corporate tax dates?
- Return and payment: no later than 9 months after the end of the tax period.
- A company with a 31 December year end files and pays for the period ending by .
- New resident companies register within 3 months of incorporation.
- Records are kept for 7 years after the end of the tax period.
Every date, with worked examples, is on corporate tax deadlines. Source: Federal Decree-Law No. 47, Articles 48, 51, 53 and 56, checked .
Where to go next
- Who pays corporate tax: resident and non resident persons, exempt persons, free zone persons and tax groups.
- Corporate tax deadlines: registration, return, payment and records.
- Corporate tax penalties: the penalty table and the late registration waiver.
- Corporate tax registration: how to register on EmaraTax.
- Corporate tax return filing: what a return needs.
- Small business relief: the AED 3,000,000 revenue election.
- Qualifying free zone person: the 0% rate for free zone companies.
- Transfer pricing: rules for related party deals.
Who can help
Many owners register and file on their own through EmaraTax. Others hire a corporate tax consultant or ask their accounting firm to prepare the return. Use the quote form on this page to ask firms in the directory what they would charge for your case.
