| First AED 375,000 at 0% | AED 0 |
| Above AED 375,000 at 9% | AED 47,250 |
| Taxable profit | AED 900,000 |
| Effective rate on profit | 5.25% |
| Profit after tax | AED 852,750 |
Just over half of all adults (52.5%) have less than $10,000, and together they own about 1% of the world's wealth.
UBS Global Wealth Report 2023UAE corporate tax in brief
UAE corporate tax applies to financial years starting on or after 1 June 2023 (Federal Decree-Law No. 47 of 2022):
- 0% on taxable profit up to AED 375,000.
- 9% on taxable profit above AED 375,000.
- Small Business Relief: resident businesses with revenue of AED 3 million or less can elect to be treated as having no taxable income, for tax periods ending on or before 31 December 2026.
- Qualifying Free Zone Persons pay 0% on qualifying income and 9% on the rest, if they meet the conditions, including the de minimis rule: non-qualifying revenue must stay under 5% of total revenue and under AED 5 million.
- Large multinational groups (global revenue of EUR 750 million or more) pay a 15% domestic minimum top-up tax from 2025.
Registration and filing
Every company must register with the Federal Tax Authority, even if it owes nothing; late registration costs AED 10,000. Returns are due within nine months of the end of the financial year. Individuals running a business pay only when their business turnover passes AED 1 million a year.
Starting a company? Find a name that's free with the CorpNameCheck business name generator, and compare free zone and mainland setup costs.
Questions people ask
What is the corporate tax rate in the UAE?
0% on the first AED 375,000 of taxable profit and 9% on the rest. Qualifying free zone income is taxed at 0%.
Do free zone companies pay corporate tax?
A Qualifying Free Zone Person pays 0% on qualifying income, provided it has real substance, keeps audited accounts and passes the de minimis test. Otherwise it pays the standard rates.
What is Small Business Relief?
If your revenue is AED 3 million or less, you can elect to be treated as having no taxable income for tax periods ending on or before 31 December 2026. You still have to register and file.
Do I need to register if I owe no tax?
Yes. All UAE companies must register for corporate tax. Missing the deadline costs AED 10,000.
More money calculators
Estimates, not advice. Our calculators follow the published rules as we understand them (checked October 2026), but they are not financial, tax or legal advice. Rules change and your contract, bank or free zone may differ. Confirm with MOHRE, the Federal Tax Authority, your bank or a licensed adviser before you act. Full disclaimer