Mainland Companies
Nearly all UAE mainland companies must register for Corporate Tax and file an annual return, regardless of whether tax is ultimately due.
CORPORATE TAX GUIDE
UAE Corporate Tax Guide for SMEs and Startups
What UAE businesses need to know about Corporate Tax: rates, registration, Free Zone treatment and Small Business Relief.
INFORMATION FIRST9% standard rate above AED 375,000 in taxable income.THE BASICS
How UAE Corporate Tax Works
UAE Corporate Tax applies to financial years starting on or after 1 June 2023, at a standard rate of 0% on taxable income up to AED 375,000 and 9% on taxable income above that threshold, for most mainland and free zone businesses.
WHO NEEDS TO REGISTER
Registration Applies Broadly
Free Zone Entities
Free zone companies must also register. A 'Qualifying Free Zone Person' meeting specific substance and income conditions may tax Qualifying Income at 0%, with non-qualifying income taxed at the standard rate.
Small Business Relief
Eligible resident persons with revenue below the relevant threshold (AED 3 million, subject to the applicable tax periods) may elect to be treated as having no taxable income for that period.
GETTING IT RIGHT
Practical Steps for Compliance
Register for Corporate Tax with the Federal Tax Authority within the deadline that applies to your licence issue dateMaintain financial statements prepared in line with applicable accounting standards, audited where requiredAssess whether your free zone income genuinely meets Qualifying Income conditions before applying the 0% rateDocument related-party and connected-person transactions to support transfer pricing requirementsFile your Corporate Tax return and settle any liability within nine months of your financial year-end
WHERE COMPANIES GO WRONG
Frequent Compliance Gaps
Common gaps include applying the Free Zone 0% rate without confirming Qualifying Income status, missing the registration deadline tied to licence issue date, treating Small Business Relief as automatic rather than an annual election, and preparing tax computations without adequate transfer pricing documentation for related-party transactions.
Reviewed September 2026. UAE tax and VAT rules can change — always confirm current rates and thresholds with the Federal Tax Authority (tax.gov.ae) or the Ministry of Finance before acting.
BEGIN WITH KNOWLEDGE AND CLARITY