UAE Corporate Tax 2024–2025: Complete Guide for Business Owners
Everything you need to know about UAE's 9% corporate tax — who it applies to, exemptions, and how to stay compliant.
UAE Corporate Tax Overview
The UAE introduced a federal corporate tax of 9% effective June 1, 2023 — one of the lowest rates globally. Understanding who it applies to and the available exemptions is critical for tax planning.
Who Pays UAE Corporate Tax?
The 9% rate applies to UAE mainland companies with taxable income exceeding AED 375,000 (~USD 102,000). Profits below this threshold are taxed at 0%.
Free Zone Companies: Conditional Exemption
Qualifying Free Zone Persons (QFZPs) can maintain 0% tax on qualifying income if they meet these conditions:
- Maintain adequate substance in the free zone
- Generate qualifying income (mostly international/inter-group)
- Do not elect to be subject to standard CT rules
- Meet the de minimis requirements for non-qualifying income
Key Exemptions
The following are exempt from corporate tax: government entities, extractive businesses (oil/gas with existing agreements), qualifying public benefit entities, and qualifying investment funds.
Compliance Requirements
All UAE businesses must register for corporate tax, maintain proper accounting records, file annual tax returns, and pay any tax due within 9 months of their financial year end.
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