UAE Corporate Tax Rates
The UAE introduced Federal Corporate Tax (CT) under Federal Decree-Law No. 47 of 2022, effective for financial years starting on or after 1 June 2023.
Standard Rates
| Taxable Income | Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
The first AED 375,000 of taxable income is always taxed at 0%, so a company earning AED 1,000,000 pays 9% only on AED 625,000 (= AED 56,250).
Free Zone Rate
Qualifying Free Zone Persons (QFZPs) may benefit from a 0% rate on qualifying income. Non-qualifying income within a QFZP entity is taxed at 9%.
Who Is Subject to Corporate Tax?
- All UAE-incorporated companies (mainland and free zone)
- Foreign companies with a permanent establishment in the UAE
- Individuals conducting business in the UAE above the AED 1 million threshold
Who Is Exempt?
- UAE government entities
- Extractive businesses (oil, gas, and natural resources) — subject to emirate-level taxation instead
- Qualifying public benefit entities
- Qualifying investment funds (subject to conditions)
Small Business Relief (SBR)
Businesses with revenue of AED 3 million or less may elect for Small Business Relief, which treats their taxable income as nil for that period. SBR must be actively elected in the CT return — it is not automatic.
First Tax Period
For most companies incorporated before 1 June 2023, the first CT tax period started on 1 June 2023 (or 1 January 2024 if the financial year is January–December). Contact Kounted to confirm your first filing deadline.