The rate
Corporate tax applies to financial years starting on or after 1 June 2023. Taxable income up to AED 375,000 is taxed at 0%, and income above that at 9%. Large multinational groups with global revenue of €750 million or more also face a 15% domestic minimum top-up tax from 1 January 2025.
Who must register
Almost every UAE company must register, including free zone companies and companies with no taxable income. Companies set up after 1 March 2024 must register within three months of incorporation. Individuals running a business must register once their turnover passes AED 1 million in a year.
When the return is due
The return and any tax due must be filed and paid within nine months of the end of your financial year. For a 31 December 2025 year-end, that is 30 September 2026.
- 31 December year-end → 30 September
- 31 March year-end → 31 December
- 30 June year-end → 31 March
Small Business Relief
If your revenue is AED 3 million or less in the current tax period and in every previous one, you can elect to be treated as having no taxable income. The relief was extended in 2026 to tax periods ending on or before 31 December 2029. You still have to register and file a return to claim it. It is not available to Qualifying Free Zone Persons or members of large multinational groups.
Free zone companies
A Qualifying Free Zone Person pays 0% on qualifying income and 9% on the rest. To qualify, the company needs adequate substance in the free zone, audited financial statements, and must stay within the limits on non-qualifying revenue. Getting this wrong can cost the 0% rate for five years, so check it before your year-end.
What to do now
- Check you are registered and know your first tax period
- Make sure your books are complete — the return starts from your financial statements
- Decide before year-end whether Small Business Relief or free zone status applies
- Put the filing deadline in your calendar with a month to spare