- UAE Corporate Tax is levied at 9% on taxable net profits exceeding AED 375,000 (approx. $102,000 USD).
- Taxable profits up to AED 375,000 are taxed at a 0% rate to support startups and SMEs.
- All UAE businesses—including Free Zone and offshore entities—must obtain a Corporate Tax Registration Number (TRN).
- Small Business Relief permits businesses with revenue under AED 3,000,000 to be treated as having no taxable income.
The 9% Corporate Tax Framework
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses established a modern tax regime aligned with international OECD standards.
The headline rate of 9% remains among the most competitive corporate tax rates globally, reinforcing the UAE as an attractive hub for international capital.
Small Business Relief (SBR) Guidelines
To foster entrepreneurship, the Ministry of Finance introduced Small Business Relief. Resident taxable persons whose revenue in the relevant and previous tax periods does not exceed AED 3,000,000 can elect for SBR.
Electing for SBR provides immense compliance simplification: entities are treated as having zero taxable income and are exempt from calculating taxable profit adjustments.
Qualifying Free Zone Persons (QFZP)
Free zone businesses can benefit from a 0% corporate tax rate on "Qualifying Income" provided they meet the definition of a Qualifying Free Zone Person (QFZP):
They must derive income from qualifying activities, maintain adequate economic substance in the free zone, comply with transfer pricing rules, and prepare audited financial statements.
Tax & Compliance Specialists
Licensed UAE Corporate AdvisoryTax & Accounting DeskFTA Certified Tax Agent
Experienced corporate structuring and commercial licensing specialist at Fast Company Setup LLC FZ with extensive on-the-ground advisory in Dubai Mainland and Free Zone jurisdictions.
