What are the corporate tax rates in the UAE for 2026?

Taxable profit or status Rate Source
Up to AED 375,000 0% [1]
Above AED 375,000 9% [1]
Qualifying Free Zone Person: qualifying income 0% [1][2]
Qualifying Free Zone Person: other income 9% [1]
UAE members of multinational groups with worldwide revenue of €750 million or more (in at least two of the four previous years) At least 15% effective rate, through a top-up tax (financial years from 1 January 2025) [1]

Federal Decree-Law No. 28 of 2025 changed how tax credits and incentives are used, and allowed refunds of some unused credits. [6] The rates above are those in PwC's summary reviewed in September 2026. [1]

How is corporate tax calculated for a company?

In outline, the starting point is the company's accounting income in its financial statements, adjusted under the Corporate Tax Law, for each tax period. The first AED 375,000 of taxable profit is taxed at 0%, and the rest at 9%. A company that elects small business relief is treated as having no taxable income for that period. [1][2][4]

Do free zone companies need to register for corporate tax?

Yes. Free zone companies are taxable persons, and every taxable person must register. [2][9] To pay 0% on qualifying income, a free zone company must meet all the Qualifying Free Zone Person conditions:

  • adequate substance in the free zone
  • income from qualifying activities, as listed in Ministerial Decision No. 229 of 2025
  • compliance with the transfer pricing rules
  • audited financial statements
  • other ("non-qualifying") revenue no higher than the lower of 5% of revenue or AED 5 million
  • no election to be taxed under the standard rules

If it fails a condition, it is taxed at 9% on its full income for that year and the next four. [5][7][8]

Small business relief

  • Who can use it: a UAE-resident business or individual whose revenue is AED 3 million or less in the current tax period and every earlier one. [3][4]
  • How it works: you elect it each period, and you're treated as having no taxable income for that period. [4]
  • Who can't use it: Qualifying Free Zone Persons, and members of multinational groups with consolidated revenue above AED 3.15 billion. [4]
  • How long: Ministerial Decision No. 131 of 2026 extended it to tax periods ending on or before 31 December 2029. [3][13]

Registration, returns and records

Obligation Rule
Registration Within 3 months of incorporation or registration for companies formed since 1 March 2024, including in a free zone. Individuals with business turnover above AED 1 million: by 31 March of the following year. [14]
Late registration AED 10,000 penalty, waived if the first return is filed within 7 months of the first tax period's end [9]
Tax return and payment Within 9 months of the end of the tax period [10]
Records Kept for 7 years after the end of the tax period [10]
Audited accounts Revenue above AED 50 million, and every Qualifying Free Zone Person [11]

Do individuals pay income tax in the UAE?

No personal income tax applies to employment or investment income. Individuals running a business in their own name pay corporate tax once that business's turnover exceeds AED 1 million in a calendar year. [1][12]

What reliefs does UAE corporate tax law provide?

The law sets out these reliefs, each for those who qualify: [1][4][5]

  • small business relief, for revenue up to AED 3 million
  • Qualifying Free Zone Person status, for qualifying income
  • the AED 375,000 band at 0%

Each has conditions that must be met, and kept, every year.

How Marlborough Gulf helps

What we do:

  • We advise on how corporate tax applies to your companies and structures, including the free zone conditions and small business relief.
  • We keep the books and prepare tax-ready accounts.

What others do: Where you need representation before the Federal Tax Authority, a registered tax agent acts for you.

Tax consultancy → Accounting and bookkeeping →

Book a consultation

Questions people ask

What is the corporate tax rate in the UAE?

0% up to AED 375,000 of taxable profit, and 9% above it. [1]

What is the minimum corporate tax rate?

For most businesses, the first AED 375,000 of profit is taxed at 0%. Large multinational groups (worldwide revenue of €750 million or more) pay at least 15%. [1]

Do freezone companies need to register for corporate tax?

Yes, all of them. [2][9]

When is the corporate tax return due?

Within nine months of the end of the tax period. [10]

This guide is general information, not tax advice for your circumstances.

Related guides

Sources

  1. PwC Worldwide Tax Summaries, UAE: corporate, taxes on corporate income, reviewed 9 Sep 2026. https://taxsummaries.pwc.com/united-arab-emirates/corporate/taxes-on-corporate-income
  2. UAE Ministry of Finance, Corporate Tax in the UAE, site updated 28 Oct 2026. https://mof.gov.ae/en/public-finance/tax/corporate-tax/
  3. UAE Ministry of Finance, "Extension of Small Business Relief… until 31 December 2029", 7 Aug 2026. https://mof.gov.ae/en/news/ministry-of-finance-announces-extension-of-small-business-relief-for-corporate-tax-purposes-until-31-december-2029/
  4. Federal Tax Authority, Small Business Relief, read 28 Oct 2026. https://tax.gov.ae/en/taxes/corporate.tax/corporate.tax.topics/small.business.relief.23.aspx
  5. PwC Worldwide Tax Summaries, UAE: corporate, tax credits and incentives (Free Zones), reviewed 9 Sep 2026. https://taxsummaries.pwc.com/united-arab-emirates/corporate/tax-credits-and-incentives
  6. KPMG UAE, "UAE issues Federal Decree-Law No. 28 of 2025 amending the corporate tax law". https://kpmg.com/ae/en/insights/tax-insights/uae-issues-federal-decree-law-no-28-of-2025-amending-the-corporate-tax-law.html
  7. DMCC, Corporate Tax (member support), read 28 Oct 2026. https://dmcc.ae/members/support/corporate-tax
  8. Ministerial Decision No. 229 of 2025 on Qualifying Activities and Excluded Activities, Ministry of Finance, 28 Aug 2025. https://mof.gov.ae/wp-content/uploads/2025/09/EN-Ministerial-Decision-No.-229-of-2025-Regarding-Qualifying-Activities-and-Excluded-Activities.pdf
  9. Federal Tax Authority, Corporate Tax Registration, updated 26 Oct 2026. https://tax.gov.ae/en/services/corporate.tax.registration.aspx
  10. Federal Decree-Law No. 47 of 2022 (Corporate Tax Law), Articles 48, 53 and 56. https://mof.gov.ae/wp-content/uploads/2022/12/Federal-Decree-Law-No.-47-of-2022-EN.pdf
  11. Ministerial Decision No. 84 of 2025 on Audited Financial Statements, Article 2. https://mof.gov.ae/wp-content/uploads/2025/04/Ministerial-Decision-No.-84-of-2025-on-Audited-Financial-Statements.pdf
  12. Federal Tax Authority, Corporate tax: basis of taxation for natural persons. https://tax.gov.ae/en/taxes/corporate.tax/corporate.tax.topics/basis.of.taxation.natural.person.aspx
  13. Ministerial Decision No. 131 of 2026 amending Ministerial Decision No. 73 of 2023 on Small Business Relief, Ministry of Finance, 29 Jul 2026. https://mof.gov.ae/wp-content/uploads/2026/08/Ministerial-Decision-No.-131-of-2026-Amending-Certain-Provisions-of-Ministerial-Decision-No.-73-of-2023-on-Small-Business-Relief-for-the-Purposes-of-Federal-Decree-Law-No.-47-of-2022-EN.pdf
  14. KPMG UAE, "Timelines for corporate tax registration specified" (FTA Decision No. 3 of 2024). https://kpmg.com/ae/en/insights/tax-insights/timelines-for-corporate-tax-registration-specified.html