Short answer
UAE Corporate Tax applies to business profits for financial years starting on or after 1 June 2023. Per FTA publications, the headline structure is 0% on taxable income up to AED 375,000 and 9% above that, with special regimes such as Qualifying Free Zone Persons. Most businesses must register and file, even if no tax is due.
Who it applies to
UAE companies and other juridical persons, certain individuals conducting business above a turnover threshold, and non-residents with a UAE permanent establishment. Exemptions exist for specific categories.
Headline rates (as published by the FTA)
Tax rules, rates and thresholds can change. Figures shown are taken from official FTA publications at the review date — always confirm current rules on tax.gov.ae or with a registered tax agent.
| Taxable income | Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
Free zone companies
A Qualifying Free Zone Person may apply a 0% rate to qualifying income if all conditions are met, including adequate substance and audited accounts. Non-qualifying income is taxed at the standard rate. Whether you qualify is a technical question for a tax adviser.
What you need to do
- 01
Register on EmaraTax
Within the deadline applicable to your company.
- 02
Keep proper accounts
Financial statements and supporting records.
- 03
File annual returns
Even where no tax is payable.
Key takeaways
- Registration is required for most businesses.
- Free zone status alone does not mean 0% tax.
- IBS does not provide tax advice — use a registered tax agent.
Related authorities
Related guides
IBS services
Related glossary terms
Frequently asked questions
Do free zone companies pay Corporate Tax?
They are within scope. Qualifying Free Zone Persons may benefit from 0% on qualifying income if they meet all conditions.
Do I need to register if I make no profit?
Generally yes — registration and filing obligations do not depend on having a profit.
Last reviewed: 25 September 2026
General educational content — not legal or tax advice. IBS is not affiliated with any government entity. Always confirm current requirements with the official authority.