UAE Corporate Tax at 9% applies to profits above AED 375,000 from June 2023. Free Zone companies can qualify for 0% on qualifying income. This guide covers who pays, what is exempt, and how to comply.
| Fact | Value | Source |
|---|---|---|
| Corporate tax rate on profits above AED 375,000 | 9% | FTA — Federal Decree-Law No. 47 of 2022 |
| Tax rate on profits up to AED 375,000 | 0% | FTA — Small Business Relief |
| Personal income tax rate | 0% | UAE FTA |
| Capital gains tax | 0% | UAE FTA |
| Withholding tax | 0% | UAE FTA |
| Free Zone qualifying income tax rate | 0% | FTA — Free Zone Persons Guide |
| Small Business Relief revenue threshold | AED 3,000,000 | FTA — Small Business Relief Guide |
| Double Tax Treaties in force | 137+ | UAE MoF |
UAE Corporate Tax at 9% applies to profits above AED 375,000 from June 2023. Free Zone companies can qualify for 0% on qualifying income. This guide covers who pays, what is exempt, and how to comply.
| Income type | Treatment |
|---|---|
| Profit up to AED 375,000 | 0% |
| Profit above AED 375,000 | 9% |
| Qualifying Free Zone income | 0% |
| Dividends from UAE subsidiaries | Exempt |
| Personal salary & investment | Out of scope |
Nine percent on profit above AED 375,000 still leaves the UAE among the most competitive tax regimes in the world.
The UAE introduced a federal Corporate Tax from June 2023. Businesses pay 9% on the portion of taxable profit above AED 375,000, and 0% on profit up to that threshold — so small and early-stage companies often pay little or nothing.
There is still no personal income tax, no capital gains tax for individuals, and no withholding tax on cross-border payments, which keeps the UAE highly competitive for owners and investors.
Free Zone companies can keep a 0% rate on their qualifying income if they meet economic substance requirements and stay within the limit for non-qualifying revenue. Income that does not qualify is taxed at 9%.
Every taxable business must register for Corporate Tax with the Federal Tax Authority, obtain a tax registration number, and file one annual return within nine months of its financial year-end.
Small Business Relief lets businesses with revenue under AED 3 million elect to be treated as having no taxable income, cutting both tax and paperwork during the early years.
The UAE has more than 137 double-tax treaties, which can reduce or remove foreign withholding taxes on dividends, interest and royalties earned abroad.
Laws and regulations change. Always verify with the relevant authority before acting on this information.
Our team provides tailored advice for your specific situation.
Book consultationAsk the AI Advisor