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UAE corporate tax rate by company type

The UAE corporate tax rate is 0% up to AED 375,000 of taxable income and 9% above it. Your structure and books are set up so the rate you plan for is the rate you file.

0% to AED 375,0009% above itSame in every emirate
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Corporate tax at a glance
Standard
0% to AED 375,000, 9% above
Free zone
0% on qualifying income
Small business
Nil, revenue AED 3M or less
At a glance

The UAE corporate tax rate is 0% on taxable income up to AED 375,000 and 9% above it, and the rate a company pays follows its position: standard, Qualifying Free Zone Person or Small Business Relief. Which one applies depends on the company’s own facts.

What we set up for your corporate tax

Structure

The position your company files under, checked first.

  • Standard, QFZP or Small Business Relief
  • Tax group or standalone

Registration

Corporate tax registration from the start.

  • Within three months of incorporation
  • VAT kept as its own registration

Books

Records kept the way the return reads them.

  • Taxable income, not revenue, tracked
  • Qualifying income kept apart

Each return

Prepared and reviewed before the deadline.

  • Nine months after the period ends
  • The relief elected where it fits

What is the corporate tax rate in the UAE?

UAE corporate tax rate by company position
PositionRateDecided by
Standard: mainland, free zone outside QFZP0% to AED 375,000, 9% aboveTaxable income, not revenue
Qualifying Free Zone Person0% on qualifying income, 9% on the restEvery condition, every tax period
Small Business ReliefTaxable income treated as nilRevenue AED 3 million or less, every period, to 2029
Tax groupOne AED 375,000 band for the whole groupGroup registration
Natural personStandard rates once in scopeBusiness turnover above AED 1 million a year

Three things change the answer for you: whether the QFZP conditions hold, revenue against AED 3 million, and a tax group or a standalone company. Run your own figures in our UAE corporate tax calculator.

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Who is exempt from corporate tax in the UAE?

Exemptions attach to income, chiefly dividends from UAE companies and from qualifying participations.

Is there corporate tax in the free zone in the UAE?

Yes. A free zone company registers and files, and pays 0% only on qualifying income while every Qualifying Free Zone Person condition holds.

When is corporate tax paid in the UAE?

With the return, nine months after the tax period ends, so 30 September for a December year end. Our corporate tax services in Dubai keep both dates.

Which rate does your company pay?

Four positions cover most companies we set up. Each one files on its own terms.

Get your tax setup proposal

Tell us your structure and your year end, and a reply comes within two business hours.

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What clients say about DM Consultancy

In their own words on Google and LinkedIn, each linked to the original.

5.0Read the reviews on Google
From the initial assessment to final implementation, the team demonstrated strong expertise, structured methodology, and clear communication.
Graphic IndustryBusiness setup clientRead on Google
  • Manish demonstrated deep expertise, professionalism, and a thorough understanding of the incorporation process. Proactive, responsive, and efficient.
    Rajesh SuguruGlobal CEO, Digital Disruption TechnologiesLinkedIn
  • They've assisted me and my family obtain golden residency in the UAE. All timelines were clearly defined and all processes transparent.
    Nicole FlandorpGolden Visa clientGoogle
  • Manish was instrumental in setting up our company in Dubai. Always responsive, readily available to answer our questions.
    Omer LiaquatProject ManagerLinkedIn
  • He was super quick to reply, very efficient and honestly the best I have worked with. He made the whole process so much easier.
    Abdolah KeriaVisa clientGoogle

Client case studies follow seven files from the first step to the documented result.

UAE corporate tax rate questions

What is the corporate tax rate in the UAE?

0% on taxable income up to AED 375,000 and 9% above it, for financial years starting on or after 1 June 2023. Qualifying free zone income and Small Business Relief can bring the figure lower.

Is there a corporate tax in Dubai?

Yes. The rate is federal, so Dubai companies file under the same rules as companies in every other emirate, with the free zone and Small Business Relief positions on top.

What is the company tax rate in the UAE?

Companies pay 9% on the slice of taxable income above AED 375,000. Tax is worked out on profit after the law’s adjustments, never on revenue, which counts only for tests such as Small Business Relief.

What is the corporate tax rate in Abu Dhabi?

Abu Dhabi has no separate rate. UAE corporate tax is federal, and Abu Dhabi mainland and free zone companies follow the same bands and relief as companies in Dubai.

What is the 9% corporate tax in the UAE?

That is the standard rate, charged only on profit above AED 375,000. On AED 500,000 of taxable income, AED 125,000 is taxed at 9%, which comes to AED 11,250.

What is the UAE corporate tax threshold?

AED 375,000 of taxable income, below which the rate is 0%. Individuals have a different entry point: business turnover above AED 1 million in a calendar year brings them into scope.

Who is exempt from corporate tax in the UAE?

Dividends from UAE resident companies are exempt in any case, as are dividends and gains from a qualifying participation, generally 5% or more held for 12 months. An extractive business needs an emirate concession and Ministry of Finance notice.

Do free zone companies pay corporate tax?

Yes, they register and file like any company. One that meets every QFZP condition in a period pays 0% on qualifying income and 9% on other income; a breach moves all of it to the standard rates.

What is the slab for corporate tax in the UAE?

Two slabs, 0% and 9%, split at AED 375,000 of taxable income. A tax group shares one AED 375,000 slab across all its members, which matters once several companies sit under one owner.

Who pays corporate tax in the UAE?

Every company incorporated in the UAE registers and files, wherever it is licensed. A foreign company managed from the UAE can become resident too, and individuals come in above AED 1 million of business turnover.

What is Small Business Relief in UAE corporate tax?

It lets a resident person with revenue of AED 3 million or less in the period and every earlier one treat taxable income as nil, for tax periods ending on or before 31 December 2029.

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Your registration and each return are covered on our corporate tax services in Dubai page.

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