Key facts
- Rate
- 0% up to AED 375,000 of taxable income, 9% above
- Applies to
- tax periods starting on or after 1 June 2023
- Return and payment
- within 9 months after the tax period ends
- Small Business Relief
- revenue up to AED 3 million, periods ending by 31 Dec 2029
- Records
- keep for 7 years
Overview
General information, not tax advice. Rules change — check the current law and guidance on tax.gov.ae (FTA) and mof.gov.ae before you act.
UAE corporate tax was introduced by Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. It applies to tax periods (usually financial years) starting on or after 1 June 2023. For a business with a calendar financial year, the first tax period was 1 January – 31 December 2024.
Corporate tax is administered by the Federal Tax Authority (FTA). Registration, returns and payments are made on EmaraTax.
Rates
| Taxable income | Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
Example: taxable income of AED 500,000 gives tax of 9% × (500,000 − 375,000) = AED 11,250.
Different rules apply to Qualifying Free Zone Persons (0% on qualifying income — see our QFZP guide). Large multinational groups are also subject to a Domestic Minimum Top-up Tax of 15% for financial years starting on or after 1 January 2025, if the group's consolidated revenue is at least EUR 750 million in at least two of the four preceding years.
Who must register
All taxable persons must register for corporate tax and obtain a corporate tax registration number — including companies that expect to pay no tax and those that will elect Small Business Relief. This covers UAE companies, including free zone companies, and natural persons doing business in the UAE above the turnover threshold set by Cabinet decision. Registration deadlines are set by FTA decision; check the current rules for your licence date.
From accounting profit to taxable income
The starting point is accounting net profit from financial statements prepared under IFRS (IFRS for SMEs is allowed for smaller businesses). This profit is then adjusted:
- Exempt income is removed — for example qualifying dividends and gains from participations.
- Non-deductible expenses are added back — for example fines and penalties (other than compensation for damages), 50% of client entertainment expenses, and donations to bodies that are not qualifying public benefit entities.
- Net interest expenditure above 30% of adjusted EBITDA is not deductible in the period, unless it is under the AED 12 million de minimis; the excess can be carried forward.
- Transactions with related parties must be on arm's length terms; adjustments may be needed.
- Available tax losses are then set off.
The result is taxable income, to which the 0% and 9% bands apply.
Tax losses
Tax losses can be carried forward without a time limit and set off against future taxable income, but only up to 75% of taxable income in each later period (before the loss relief). Carry-forward is subject to conditions, including continuity of ownership (at least 50%) or of the same or similar business. Losses from before the business became subject to corporate tax cannot be used.
Small Business Relief
Small Business Relief (Article 21 of the Decree-Law and Ministerial Decision No. 73 of 2023) lets a resident person elect to be treated as having no taxable income for a tax period. Conditions:
- revenue for the tax period, and for every previous tax period, is AED 3,000,000 or less;
- the relief is available for tax periods starting on or after 1 June 2023 and ending on or before 31 December 2029 (the original end date of 31 December 2026 was extended by Ministerial Decision No. 131 of 2026);
- it is not available to Qualifying Free Zone Persons or to members of multinational groups that meet the large-group revenue threshold;
- it must be elected in the corporate tax return.
A business using the relief still registers and files a return, keeps records, and cannot carry forward tax losses (or disallowed net interest) from the periods in which it elected the relief. Once revenue exceeds AED 3 million in any period, the relief is no longer available for that or later periods.
Return, payment and audited accounts
The corporate tax return must be filed and the tax paid within 9 months after the end of the tax period. For a calendar year ending 31 December 2025, the deadline is 30 September 2026.
Audited financial statements are required for taxable persons whose revenue exceeds AED 50 million in the tax period, and for Qualifying Free Zone Persons (Ministerial Decision No. 84 of 2025 for tax periods starting on or after 1 January 2025; earlier periods — Ministerial Decision No. 82 of 2023).
Record keeping
Records and documents supporting the tax return, including financial statements, must be kept for 7 years after the end of the tax period they relate to.
How Ledgr helps
- A corporate tax computation built from your books: accounting profit, adjustments, losses, the 0% and 9% bands.
- A Small Business Relief test on your revenue, with the reason shown when the relief does not apply.
- Tax losses carried forward, adjustments with notes, and a schedule laid out for the EmaraTax return.
- Profit and loss and balance sheet reports, and a compliance calendar with the corporate tax deadline.
Official sources
- Federal Tax Authority — Corporate Tax: laws, decisions and guidestax.gov.ae/en/taxes/corporate.tax.aspx
- Ministry of Finance — Small Business Relief extended to 31 December 2029 (Ministerial Decision No. 131 of 2026)mof.gov.ae/en/news/ministry-of-finance-announces-extension-of-small-business-relief-for-corporate-tax-purposes-until-31-december-2029/
- Ministry of Finance — UAE tax legislationmof.gov.ae/en/public-finance/tax/
- UAE Government portal — Taxationu.ae/en/information-and-services/finance-and-investment/taxation
General information, not tax advice. Rules change — check the current FTA and Ministry of Finance guidance before you act.