When did UAE Corporate Tax come into effect?

Corporate Tax applies to financial years that start on or after 1 June 2023. If your financial year runs from January to December, your first Corporate Tax year was the one ending 31 December 2024.

Who qualifies for Small Business Relief under UAE Corporate Tax?

You can choose Small Business Relief if you are a UAE resident and your revenue was no more than AED 3 million in the current tax period and in every earlier one. You are then treated as having no taxable income for that period. The relief is open for tax periods ending on or before 31 December 2029 (Ministerial Decision No. 73 of 2023 as amended by Ministerial Decision No. 131 of 2026). Qualifying Free Zone Persons can't use it, and neither can members of multinational groups with combined group revenue of AED 3.15 billion or more.

Do free zone companies pay Corporate Tax in the UAE?

Free zone companies that count as Qualifying Free Zone Persons (QFZPs) pay 0% on their qualifying income. To count, a company needs real economic substance in the UAE, meaning staff, premises and spending that match its business. Its income has to come from qualifying activities. Any other income must stay under the de minimis limit: at most 5% of total revenue or AED 5 million, whichever is lower.

Do large multinationals pay more than 9% Corporate Tax in the UAE?

Yes. The Domestic Minimum Top-up Tax (DMTT) applies from financial years starting on or after 1 January 2025 under Cabinet Decision No. 142 of 2024. It covers UAE companies in a multinational group with combined revenue of at least EUR 750 million in at least two of the four previous financial years. The DMTT raises the tax actually paid on their UAE profits to 15%, in line with the OECD Pillar Two rules (a global minimum tax agreed between countries). It can apply even to companies that would otherwise pay 9% or use free zone benefits. Smaller businesses stay on the standard 9% rate.

UAE Corporate Tax Calculator

Q: What is the UAE Corporate Tax rate?

The rate is 9% on taxable income (roughly your net profit after tax adjustments) above AED 375,000 per tax period. The first AED 375,000 is taxed at 0%. A free zone company that meets the conditions for a Qualifying Free Zone Person (QFZP) can pay 0% on its qualifying income.

Estimate how much UAE Corporate Tax (CT) you owe. The 9% rate applies to taxable profit above AED 375,000 per financial year (Federal Decree-Law No. 47 of 2022).

UAE Corporate Tax Calculator

Taxable income for the tax period (AED)

AED

Your net profit from the accounts after tax adjustments. For example, add back costs the tax law doesn't let you deduct and take out exempt income. Enter a negative number for a loss.

Revenue for the tax period (AED) for the Small Business Relief and de minimis checks

AED

Leave blank if neither check applies to you.

Qualifying Free Zone Person (QFZP)

This is an estimate under the UAE Corporate Tax Law (Federal Decree-Law No. 47 of 2022) and the decisions that put it into practice. It doesn't cover every adjustment, relief or group structure, and it leaves out the Domestic Minimum Top-up Tax for large multinational groups. A UAE tax consultant can check the figures for your business.

How UAE Corporate Tax Works

Last reviewed: October 2026

2026 update: Small Business Relief now runs to tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131 of 2026). Multinational groups with combined revenue of at least EUR 750 million fall under the Domestic Minimum Top-up Tax for financial years starting on or after 1 January 2025. There is also a new R&D tax credit for tax periods starting on or after 1 January 2026. It lowers the tax you owe but is never paid out as cash.

Under Federal Decree-Law No. 47 of 2022, you pay 9% on taxable income above AED 375,000 per tax period. The first AED 375,000 is taxed at 0%. Taxable income is your accounting profit after the adjustments the tax law requires.

Small Business Relief: If you are a UAE resident and your revenue was AED 3 million or below in the current and every earlier tax period, you can choose to be treated as having no taxable income. This works for tax periods ending on or before 31 December 2029. You still have to file a return.

Free Zone Companies: A free zone company that meets the conditions for a Qualifying Free Zone Person (QFZP) pays 0% on qualifying income. Its other income is taxed at 9%, and the AED 375,000 band at 0% doesn't apply to it.

Filing: You file your Corporate Tax return with the Federal Tax Authority (FTA) on EmaraTax within 9 months of the end of the tax period.

Large multinational groups (2025 onwards): The Domestic Minimum Top-up Tax (DMTT) makes sure these groups pay at least 15% on their UAE profits. It covers UAE companies in multinational groups with combined revenue of at least EUR 750 million in at least two of the four previous financial years, for financial years starting on or after 1 January 2025 (Cabinet Decision No. 142 of 2024, in line with the OECD Pillar Two rules). This calculator only works with the standard 9% rate. If your group is covered, ask a specialist to work out your figures.

R&D tax incentive (from 2026): Companies that spend on research and development can get a tax credit for tax periods starting on or after 1 January 2026 (Cabinet Decision No. 215 of 2025 and Ministerial Decision No. 24 of 2026). The credit reduces Corporate Tax and Top-up Tax, but it is non-refundable, so you don't get cash back if it is larger than your tax. Published summaries give credit rates of 15%, 35% or 50%, depending on how much you spend.

Taxable Income (AED)	Tax Rate
AED 0 to AED 375,000	0%
Above AED 375,000	9%
Qualifying Free Zone income (QFZP)	0%
Revenue ≤ AED 3M (Small Business Relief)	No taxable income (by election, periods ending by 31 Dec 2029)

Frequently Asked Questions

What is the UAE Corporate Tax rate?

It is 9% on taxable income above AED 375,000 per tax period. The first AED 375,000 is taxed at 0%.

When did UAE Corporate Tax start?

It applies to financial years starting on or after 1 June 2023. If your year runs from Jan to Dec, your first Corporate Tax year was the one ending 31 December 2024.

Who qualifies for Small Business Relief?

UAE residents whose revenue was AED 3 million or below in the current and every earlier tax period, for tax periods ending on or before 31 December 2029. You choose the relief in your tax return.

Do free zone companies pay Corporate Tax?

Qualifying Free Zone Persons (QFZPs) pay 0% on qualifying income. Their other income is taxed at 9%, without the AED 375,000 band at 0%.

Do large multinationals pay more than 9%?

Yes. From financial years starting on or after 1 January 2025, UAE companies in multinational groups with combined revenue of at least EUR 750 million in two of the four previous years pay a Domestic Minimum Top-up Tax if the tax they pay on UAE profits is below 15% (Pillar Two). Smaller businesses stay on 9%.

Need a UAE Corporate Tax consultant?

A consultant can check your taxable income, the reliefs you can use and your filing date. Find one in Dubai, Abu Dhabi or any other emirate.

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