When did UAE Corporate Tax come into effect?

UAE Corporate Tax applies to financial years starting on or after 1 June 2023. For a company with a January–December financial year, the first tax period subject to Corporate Tax was the year ending 31 December 2024.

Who qualifies for Small Business Relief under UAE Corporate Tax?

UAE resident businesses with revenue of AED 3 million or less per tax period may elect for Small Business Relief, treating their taxable income as zero for that period. This relief is available for tax periods ending on or before 31 December 2026.

Do free zone companies pay Corporate Tax in the UAE?

Free zone companies that qualify as Qualifying Free Zone Persons (QFZPs) benefit from a 0% Corporate Tax rate on their qualifying income. To qualify, they must maintain adequate economic substance in the UAE, derive income from qualifying activities, and meet the de minimis non-qualifying income threshold (maximum 5% of total revenue or AED 5 million, whichever is lower).

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

Yes. From financial years starting on or after 1 January 2025, UAE entities that are part of a multinational group with global consolidated revenue of at least EUR 750 million are subject to a 15% Domestic Minimum Top-up Tax (DMTT) under Cabinet Decision No. 142 of 2024, aligned with the OECD Pillar Two rules. This can apply even to entities that otherwise benefit from the 9% rate or free zone incentives. Smaller businesses remain subject to the standard 9% Corporate Tax regime.

UAE Corporate Tax Calculator

Q: What is the UAE Corporate Tax rate?

The UAE Corporate Tax rate is 9% on taxable income (net profit) above AED 375,000 per tax period. Income up to AED 375,000 is taxed at 0%. Free zone companies meeting Qualifying Free Zone Person (QFZP) conditions may benefit from a 0% rate on qualifying income.

Calculate your UAE Corporate Tax (CT) liability. 9% rate applies on taxable profits above AED 375,000 per financial year (Federal Decree-Law No. 47 of 2022).

UAE Corporate Tax Calculator

Annual Net Profit (AED)

AED

Your net profit (revenue minus all deductible expenses) before Corporate Tax.

Annual Revenue (AED) — for Small Business Relief check

AED

Leave blank if you don't need Small Business Relief check.

Qualifying Free Zone Person (QFZP) — 0% rate on qualifying income

This calculator provides an estimate based on UAE Corporate Tax Law (Federal Decree-Law No. 47 of 2022). It does not account for all adjustments, reliefs, or group situations. Consult a licensed UAE tax consultant for advice specific to your circumstances.

How UAE Corporate Tax Works

Last reviewed: July 2026

2026 update: Small Business Relief remains available for tax periods ending on or before 31 December 2026. Large multinational groups (global consolidated revenue ≥ EUR 750m) are now within scope of the 15% Domestic Minimum Top-up Tax for financial years starting on or after 1 January 2025, and a new 30–50% R&D tax credit applies from 1 January 2026.

UAE Corporate Tax (Federal Decree-Law No. 47 of 2022) applies at 9% on taxable income above AED 375,000 per tax period. The first AED 375,000 is taxed at 0%.

Small Business Relief: Resident businesses with revenue of AED 3 million or below may elect to be treated as having no taxable income for periods ending on or before 31 December 2026.

Free Zone Companies: Qualifying Free Zone Persons (QFZPs) benefit from a 0% rate on qualifying income. Non-qualifying income is taxed at 9%.

Filing: Corporate Tax returns must be submitted to the FTA via EmaraTax within 9 months of the end of the relevant tax period.

Large multinational groups (2025 onwards): A 15% Domestic Minimum Top-up Tax (DMTT) applies to UAE entities of multinational groups with global consolidated revenue of at least EUR 750 million, for financial years starting on or after 1 January 2025 (Cabinet Decision No. 142 of 2024, aligned with the OECD Pillar Two rules). This calculator models the standard 9% regime only — in-scope groups should seek specialist advice on their effective tax rate.

R&D tax incentive (from 2026): The UAE has introduced a research & development tax incentive offering a refundable tax credit of 30–50% of qualifying R&D expenditure, effective for tax periods starting on or after 1 January 2026.

Taxable Income (AED)	Tax Rate
AED 0 – AED 375,000	0%
Above AED 375,000	9%
Qualifying Free Zone income (QFZP)	0%
Revenue ≤ AED 3M (Small Business Relief)	0% (by election)

Frequently Asked Questions

What is the UAE Corporate Tax rate?

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?

For financial years starting on or after 1 June 2023. For a company with a Jan–Dec year, the first CT period was the year ending 31 December 2024.

Who qualifies for Small Business Relief?

UAE resident businesses with revenue of AED 3 million or below per tax period, for periods ending on or before 31 December 2026.

Do free zone companies pay Corporate Tax?

Qualifying Free Zone Persons (QFZPs) pay 0% on qualifying income. Non-qualifying income is taxed at 9%.

Do large multinationals pay more than 9%?

Yes. From financial years starting on or after 1 January 2025, UAE entities of multinational groups with global revenue ≥ EUR 750m face a 15% Domestic Minimum Top-up Tax (Pillar Two). Smaller businesses stay on the 9% regime.

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