UAE Corporate Tax Basics: Rates, Registration, and Deadlines

The 0%/9% rate structure, registration rules, Free Zones, Small Business Relief, and filing deadlines.

The UAE introduced Corporate Tax for financial years starting on or after 1 June 2023. It applies alongside VAT and Excise Tax — a business can be registered for any combination, depending on its activity and size.

The rate structure

Taxable income up to AED 375,000 is taxed at 0%. Taxable income above that threshold is taxed at 9% — and only the portion above the threshold, not the whole amount. This two-tier structure keeps the tax burden light for small businesses and startups.

Registration is mandatory regardless of profit

Unlike VAT, Corporate Tax registration has no turnover or profit threshold that exempts a business from registering. Essentially every business conducting activity in the UAE must register, even one that expects to owe AED 0 in tax.

Free Zones and Qualifying Free Zone Persons

A business incorporated in a UAE Free Zone can potentially qualify as a Qualifying Free Zone Person (QFZP), letting its qualifying income continue to be taxed at 0% under a separate regime from the ordinary AED 375,000 threshold — subject to specific conditions the return's Elections step asks about directly.

Small Business Relief

An eligible taxable person can elect to be treated as having no taxable income for the period, provided revenue for the relevant and prior tax periods doesn't exceed AED 3,000,000. It's an active election made on the return, not an automatic exemption — and electing it (while eligible) is what lets the filing wizard skip the detailed accounting schedule entirely.

Filing deadline

A Corporate Tax return and any payment due must be submitted within 9 months of the end of the relevant financial year. For example, a business with a financial year ending 31 December 2025 has until 30 September 2026 to file and pay.

What the return asks for

Filing is done through the same EmaraTax portal as VAT, under the Taxable Person Account. The real return's full shape is Elections (Multinational Enterprise Group membership, Double Taxation Agreement residency, Free Zone/QFZP status, Small Business Relief) → Accounting Schedules → Accounting Adjustments & Exempt Income → Reliefs → Other Adjustments → Tax Liability & Tax Credits → Review & Declaration — collapsing to just Elections → Review & Declaration when Small Business Relief is elected.

UAE tax course · Study notes · Tax calculators · Blog · Pricing