The UAE introduced a federal corporate tax for financial years starting on or after 1 June 2023. It is administered by the Federal Tax Authority (FTA) through the EmaraTax portal.
The rates
| Taxable income | Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
| Large multinational groups (global revenue EUR 750m+) | 15% minimum (top-up tax) |
Example: taxable income of AED 1,000,000 → (1,000,000 − 375,000) × 9% = AED 56,250.
Small business relief
Resident businesses with revenue of AED 3 million or less in the current and every previous tax period can elect to be treated as having no taxable income. The relief applies to tax periods ending by 31 December 2029. You must still register and file a return, and elect the relief on it. Qualifying free zone persons and members of large multinational groups cannot use it.
Free zones
A qualifying free zone person can pay 0% on qualifying income, such as trade with other free zone businesses or certain activities, and 9% on the rest. The conditions are strict: real substance in the zone, audited financial statements and limited non-qualifying income. Getting this wrong means the whole business is taxed at 9%.
What every business must do
- Register on EmaraTax and get a corporate tax registration number. New companies must register within three months of incorporation. Late registration carries an AED 10,000 penalty, which is waived if the first return is filed within seven months of the period end.
- Keep proper books under IFRS (or IFRS for SMEs), and keep records for seven years.
- File the return and pay within nine months of the end of the tax period.
- Have accounts audited if revenue is above AED 50 million, or if you are a qualifying free zone person.
Estimate your tax with the corporate tax estimator (choose UAE).
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KasemCPA can review your numbers, build the model properly or set it up in Odoo.