Last reviewed: July 2026
UAE Corporate Tax applies to Tax Periods beginning on or after 1 June 2023. It introduced registration, accounting, return filing, payment and record keeping obligations for companies and other persons conducting business in the UAE.
A company may have no Corporate Tax to pay because it made a loss, falls within the 0% band or qualifies for a relief. However, if the company is a Taxable Person, it must still comply with the applicable registration, filing and record keeping requirements.
This page provides a practical overview of the main rules. Each section links to a separate guide that explains the topic in greater detail, including the applicable conditions, deadlines, examples and common mistakes.
- The first AED 375,000 of taxable income is subject to Corporate Tax at 0%.
- Taxable income exceeding AED 375,000 is generally subject to Corporate Tax at 9%.
- The AED 375,000 threshold relates to taxable income, not revenue or sales.
- A Taxable Person must file a Corporate Tax Return even when it made a loss or has no Corporate Tax payable.
- The return and any Corporate Tax payable are generally due within nine months from the end of the Tax Period.
- Eligible Resident Persons may elect for Small Business Relief when the applicable conditions are satisfied.
- Free Zone companies are not automatically exempt from Corporate Tax.
- Relevant accounting and tax records must generally be retained for seven years.
What Is UAE Corporate Tax?
Corporate Tax is a direct tax imposed on taxable income earned from a business or business activity. The calculation normally begins with the accounting profit or loss reported in the financial statements. Adjustments are then made under the Corporate Tax rules to determine taxable income.
These adjustments can relate to exempt income, non-deductible expenditure, Tax Losses, interest restrictions, related party transactions and available elections or reliefs. This means that accounting profit and taxable income are not always the same.
Read our detailed guide to how UAE Corporate Tax is calculated.
Who Is Subject to Corporate Tax?
Corporate Tax applies to UAE companies and other juridical persons, including companies established in the mainland and Free Zones. It can also apply to foreign persons with a Permanent Establishment or other taxable connection in the UAE.
A natural person is subject to Corporate Tax only when they conduct a business or business activity in the UAE and the total turnover from those activities exceeds AED 1 million during a Gregorian calendar year. Wages, personal investment income and qualifying real estate investment income are not treated as business turnover for this purpose.
For the individual business rules, read our guide to UAE Corporate Tax for natural persons.
Corporate Tax Rates and the AED 375,000 Threshold
The standard rates are 0% on taxable income up to AED 375,000 and 9% on the portion exceeding AED 375,000. The threshold is not based on revenue, invoices or cash received.
For example, where taxable income is AED 500,000, the first AED 375,000 is taxed at 0% and the remaining AED 125,000 is taxed at 9%. The resulting Corporate Tax is AED 11,250 before considering any available tax credits or other adjustments.
See the complete explanation and further examples in How UAE Corporate Tax Is Calculated: Revenue, Profit and Taxable Income.
Corporate Tax Registration
Taxable Persons must register through the FTA's EmaraTax platform within the deadline applicable to their category. The deadline depends on factors such as the person's legal form, incorporation date and residence status.
Many UAE companies formed before 1 March 2024 have already passed their original registration deadlines. A newly incorporated UAE juridical person must generally apply within three months from its incorporation, establishment or recognition. Different rules apply to natural persons, non residents and certain Exempt Persons.
Read our detailed guide to UAE Corporate Tax registration, deadlines and required documents.
Corporate Tax Return Filing and Payment
A Taxable Person must file a Corporate Tax Return no later than nine months from the end of the relevant Tax Period. Any Corporate Tax payable is generally due by the same deadline.
For example, a company with a financial year ending on 31 December 2025 will generally need to file its return and pay the Corporate Tax due by 30 September 2026. The return should be prepared using complete accounting records and the required tax adjustments.
Read our detailed guide to filing a UAE Corporate Tax Return and paying the tax due.
What If the Company Made a Loss?
A company that is a Taxable Person must file its Corporate Tax Return even if it made an accounting loss, incurred a Tax Loss, had no taxable income or has no Corporate Tax payable.
A qualifying Tax Loss can generally be carried forward and used against taxable income in future periods, subject to the applicable conditions and limitations. The election for Small Business Relief can affect the ability to carry forward a loss arising during the elected period.
Read our detailed guide to UAE Corporate Tax Losses and carry forward rules.
Small Business Relief
Small Business Relief is an election available to eligible Resident Persons. Under the rules applicable at the time of writing, the person's revenue must not exceed AED 3 million in the relevant Tax Period or in any previous relevant Tax Period, and the relief currently applies only to qualifying Tax Periods ending on or before 31 December 2026.
The relief is not automatic. It must be elected in the Corporate Tax Return. Electing for it does not remove the registration, filing or record keeping obligations, and it can affect the treatment of Tax Losses and net interest expenditure.
Read our detailed guide to UAE Small Business Relief, its conditions and key considerations.
Corporate Tax for Free Zone Companies
Free Zone companies fall within the Corporate Tax regime. A Free Zone company that is a Taxable Person must register, file its return and maintain the required records.
A company that meets all the conditions to be a Qualifying Free Zone Person may benefit from 0% on Qualifying Income, while other taxable income may be subject to 9%. The analysis depends on the company's activities, income, transactions, substance, audited financial statements and other compliance conditions, not simply on whether it has mainland customers.
Read our detailed guide to UAE Corporate Tax for Free Zone companies and the 0% rate.
Records and audited financial statements
Taxable Persons must retain sufficient records to support the information reported in their returns and to allow their taxable income to be determined. Relevant records must generally be kept for seven years after the end of the Tax Period.
For Tax Periods beginning on or after 1 January 2025, audited financial statements are required for a Taxable Person that is not a Tax Group and has revenue exceeding AED 50 million, and for every Qualifying Free Zone Person. Separate requirements apply to Tax Groups.
Read our detailed guide to Corporate Tax records and audited financial statements.
Corporate Tax Penalties
Different penalties apply to different failures. Under the current rules, late Corporate Tax registration carries an AED 10,000 penalty. Late filing is subject to a monthly penalty, and a separate late payment penalty applies to unpaid Corporate Tax.
The FTA also has an initiative under which the late registration penalty can be waived or reversed when the required conditions are met, including filing the first return within seven months from the end of the first Tax Period. This initiative does not waive ordinary late filing or late payment penalties.
Read our detailed guide to UAE Corporate Tax penalties for late registration, filing and payment.
Corporate Tax and VAT Are Separate
Corporate Tax is generally calculated on taxable business income and reported annually. VAT is a transaction based tax charged on taxable supplies and reported according to the VAT periods assigned by the FTA.
Registration for VAT does not automatically register a business for Corporate Tax, and Corporate Tax registration does not replace VAT registration. A business can be required to comply with both systems.
What Should a Business Do Now?
- Confirm whether the business has completed Corporate Tax registration.
- Identify its first and current Tax Periods and the relevant filing deadlines.
- Bring the accounting records up to date and reconcile key balances.
- Determine the accounting profit or loss and calculate the required tax adjustments.
- Assess Small Business Relief, Free Zone treatment and Tax Losses before making elections.
- File the return, pay any Corporate Tax due and retain the supporting records.
Still Have Questions?
Corporate Tax obligations depend on the business's legal form, activities, Tax Period, Free Zone status and supporting records. Short answers to common business questions are available on the dedicated FAQ page.
Visit our UAE Corporate Tax FAQ page for concise answers and links to the relevant detailed guides.
Need Help With UAE Corporate Tax?
Our team can review your registration status, Tax Period, filing deadline, accounting records, Small Business Relief eligibility, Tax Loss position and Free Zone treatment.
We also assist with Corporate Tax registration and returns, VAT registration and filing, bookkeeping, accounting and assurance services.
Contact us for a review based on your business's actual circumstances.
Professional Disclaimer
This article is provided for general information and educational purposes. It does not constitute tax, accounting or legal advice for a particular person or transaction. The correct treatment may depend on the business's legal form, activities, Tax Period, Free Zone status, related party transactions and supporting documentation. The latest UAE legislation, Ministry of Finance decisions and FTA guidance should be reviewed before action is taken.