UAE Corporate Tax Explained (2026)
The 9% regime, small business relief, and Free Zone qualifying income — decoded for founders.
The headline regime
9% Corporate Tax applies to taxable income above AED 375,000. Below that threshold, the rate is 0%. Multinationals in scope of Pillar Two face additional considerations.
Small Business Relief
Businesses with revenue under AED 3 million can elect Small Business Relief through 2026, effectively neutralising Corporate Tax liability while filing obligations remain.
Free Zone qualifying income
Qualifying Free Zone Persons benefit from 0% on qualifying income, provided they maintain adequate substance, meet de minimis rules, and derive income from qualifying activities.
Registration and filing
All UAE businesses must register for Corporate Tax with the FTA. Returns are filed within 9 months of the financial year end.
Once trading begins, check whether your turnover triggers VAT: our guide to VAT registration in the UAE explains the mandatory and voluntary thresholds, the documents required and the EmaraTax process.
Frequently asked questions
Do Free Zone companies need to register for Corporate Tax?
Yes. Registration is mandatory for all UAE legal persons, even if they qualify for the 0% rate.
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