What is UAE Corporate Tax?
The UAE introduced Corporate Tax (CT) effective June 1, 2023 under Federal Decree-Law No. 47 of 2022. It applies to all businesses incorporated or effectively managed in the UAE, regardless of whether they make a profit.
9% Standard Rate
On taxable income above AED 375,000
0% Rate
On taxable income up to AED 375,000
All Businesses
Registration mandatory regardless of profit
Annual Filing
Return due within 9 months of year-end
Corporate Tax Rates & Thresholds
UAE Corporate Tax Structure (2024-2025)
Small Business Relief: Businesses with annual revenue ≤ AED 3 million can elect for relief until December 31, 2026. They're treated as having no taxable income but must still register and file returns.
Who Must Register?
| Entity Type | Registration Required? |
|---|---|
| UAE Mainland Companies (LLC, etc.) | Yes - Mandatory |
| Free Zone Companies | Yes - Mandatory |
| Freelancers (Revenue > AED 1 million) | Yes - Mandatory |
| Natural Persons in Business | Yes - If Revenue > AED 1M |
| Branches of Foreign Companies | Yes - Mandatory |
| Loss-Making Businesses | Yes - Still Required |
CT Registration Process
Corporate Tax Penalties
| Violation | Penalty |
|---|---|
| Late CT registration | AED 10,000 |
| Late CT return filing (1st offence) | AED 1,000 - 10,000 |
| Failure to maintain records | AED 10,000 (1st); AED 20,000 (repeat) |
| Failure to submit documents to FTA | AED 5,000 |
Note: FTA has waived late registration penalties for businesses that register and file their first return within 7 months of their first tax period end.
Frequently Asked Questions
Businesses with annual revenue ≤ AED 3 million can elect for relief (until Dec 2026). They're treated as having zero taxable income but must still register with FTA and file returns.
CT returns must be filed within 9 months after the end of your financial year. For example, a Dec 2024 year-end files by Sept 30, 2025.
Qualifying Free Zone Persons (QFZP) can benefit from 0% CT on qualifying income if they meet substance requirements. All Free Zone companies must register regardless.