01
0% Corporate Tax Rate
A 0% rate applies to taxable income up to and including AED 375,000.
Federal Decree-Law No. 47 of 2022
UAE Corporate Tax Guide 2026
Everything UAE founders, business owners and finance teams need to know about UAE Corporate Tax in 2026, including the 0% and 9% tax rates, AED 375,000 taxable-income threshold, Free Zone QFZP rules, Small Business Relief, FTA registration, Corporate Tax filing and ongoing compliance requirements.
- 0% and 9% UAE Corporate Tax rate guidance
- AED 375,000 taxable-income threshold explained
- QFZP and Free Zone Corporate Tax guidance
- Small Business Relief eligibility review
- FTA Corporate Tax registration requirements
- Filing, accounting and compliance support
UAE Corporate Tax Rate in 2026
For standard taxable persons, UAE Corporate Tax uses two main taxable-income bands.
02
9% Corporate Tax Rate
A 9% rate applies to the portion of taxable income exceeding AED 375,000. For example, if taxable income is AED 1 million, the first AED 375,000 is taxed at 0% and the remaining AED 625,000 is taxed at 9%.
Small Business Relief UAE ā 2026
Small Business Relief is separate from the standard AED 375,000 Corporate Tax rate threshold. An eligible Resident Person can elect for Small Business Relief where revenue is AED 3 million or less in the relevant Tax Period, revenue did not exceed AED 3 million in applicable previous Tax Periods and other eligibility conditions are satisfied. Where the relief applies, the eligible person is treated as having no taxable income for that Tax Period. A Qualifying Free Zone Person cannot elect for Small Business Relief.
Free Zone Corporate Tax & QFZP Rules
UAE Free Zone companies fall within the Corporate Tax regime. A Free Zone Person that satisfies the requirements to become a Qualifying Free Zone Person can benefit from 0% Corporate Tax on Qualifying Income and 9% Corporate Tax on taxable income that is not Qualifying Income. Importantly, a QFZP does not receive the standard 0% rate on the first AED 375,000 of non-qualifying taxable income.
What Is a Qualifying Free Zone Person (QFZP)?
Relevant conditions can include:
- Maintaining adequate substance
- Deriving Qualifying Income
- Meeting de minimis requirements
- Complying with transfer pricing rules
- Meeting applicable financial statement and audit requirements
- Avoiding activities that would cause the person to fail QFZP conditions
FTA Corporate Tax Registration
Persons subject to UAE Corporate Tax must register with the Federal Tax Authority where required and obtain a Corporate Tax Registration Number. Registration is completed through the EmaraTax platform. Juridical persons subject to Corporate Tax are required to register according to the applicable registration timelines.
Who Must Register for UAE Corporate Tax?
01
UAE Mainland Companies
UAE juridical persons that are subject to Corporate Tax generally need to obtain a Corporate Tax Registration Number.
02
UAE Free Zone Companies
Free Zone Persons can also have registration obligations, including companies seeking QFZP treatment.
03
Foreign Companies
Foreign companies can have UAE Corporate Tax obligations where they have a Permanent Establishment, nexus or another taxable presence under the applicable rules.
04
Natural Persons Conducting Business
Natural persons become subject to Corporate Tax registration where they conduct a business or business activity in the UAE and annual business turnover exceeds AED 1 million. Salary, personal investment income and real-estate investment income are excluded from this turnover test.
UAE Corporate Tax Timeline: 2023ā2026
UAE Corporate Tax developed from the introduction of the federal regime in 2023 into a more mature registration, filing and compliance environment by 2026.
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UAE Corporate Tax in 2023
2023 marked the introduction of the UAE Corporate Tax regime for relevant Tax Periods, including 0% on taxable income up to AED 375,000, 9% on taxable income exceeding AED 375,000, the Free Zone Corporate Tax framework and new accounting requirements.
02
UAE Corporate Tax in 2024
During 2024, Corporate Tax registration and implementation became a major compliance priority for UAE businesses, including FTA registration, Tax Period reviews, Free Zone QFZP assessments, accounting readiness and natural-person rules.
03
UAE Corporate Tax in 2025
By 2025, many businesses entered their first Corporate Tax return and payment cycles, with focus on return preparation, taxable-income calculations, accounting records, transfer pricing, Free Zone Qualifying Income and natural-person registration obligations.
04
UAE Corporate Tax in 2026
By 2026, UAE Corporate Tax has moved further into ongoing registration, filing, Free Zone and compliance management, including QFZP compliance, transfer pricing, Small Business Relief eligibility, tax groups and current FTA updates.
UAE Corporate Tax Registration Deadlines
Corporate Tax registration deadlines depend on the type of taxpayer and the applicable FTA rules. For example, a natural person conducting business in the UAE whose turnover exceeds AED 1 million during a calendar year generally must register by 31 March of the following calendar year. Companies should confirm the registration deadline that applies to their specific legal form, license and tax status.
Corporate Tax for Individuals & Sole Businesses in the UAE
A natural person can become subject to UAE Corporate Tax when:
- They conduct a business or business activity in the UAE
- Total business turnover exceeds AED 1 million in a calendar year
Excluded from this turnover calculation:
- Salary or wages
- Personal investment income
- Real estate investment income
UAE Corporate Tax Return Filing
Corporate Tax registration is only the first stage of compliance. Businesses should also prepare for taxable-income calculations, Corporate Tax return preparation, applicable tax payment, financial records, supporting documents, related-party information and Free Zone calculations where applicable. The filing deadline depends on the company's Tax Period and applicable FTA rules.
Corporate Tax Accounting & Record Keeping
Records can include:
- Revenue
- Expenses
- Assets and liabilities
- Tax adjustments
- Related-party transactions
- Qualifying Income calculations
- Corporate Tax return information
UAE Corporate Tax Transfer Pricing
Transactions between related parties and connected persons can fall within UAE transfer-pricing requirements. Businesses should review related-party transactions, arm's-length pricing, required disclosures, documentation requirements and group transactions. This is particularly important for corporate groups and multinational businesses.
UAE Corporate Tax Compliance Checklist
- Corporate Tax registration completed
- Corporate Tax Registration Number obtained
- Correct Tax Period confirmed
- Accounting system prepared
- Revenue and expenses recorded
- QFZP status reviewed if applicable
- Small Business Relief eligibility reviewed
- Transfer-pricing obligations checked
- Corporate Tax return deadline confirmed
- Tax-payment deadline confirmed
- Supporting records maintained
Corporate Tax for UAE Mainland Companies
Mainland companies generally fall under the standard UAE Corporate Tax regime unless an exemption or specific relief applies. For standard taxable persons, 0% applies to taxable income up to AED 375,000 and 9% applies to taxable income exceeding AED 375,000. The tax is calculated on taxable income, not simply the company's turnover.
UAE Corporate Tax vs VAT
01
Corporate Tax
Corporate Tax generally applies to taxable business income.
02
VAT
VAT is a separate transaction-based tax governed by UAE VAT rules. Registration or compliance for one tax does not replace obligations for the other.
UAE Corporate Tax Services by Najoom
01
FTA Corporate Tax Registration
Support with preparing and submitting Corporate Tax registration information.
02
QFZP Assessment Support
Support reviewing Free Zone activities and Corporate Tax requirements relevant to QFZP treatment.
03
Small Business Relief Review
Review whether a business may meet the applicable Small Business Relief criteria.
04
Accounting & Bookkeeping Coordination
Support organizing financial information needed for tax compliance.
05
Corporate Tax Filing Support
Assist with Corporate Tax return preparation and coordination with relevant tax professionals.
06
Ongoing Tax Compliance
Support businesses with continuing Corporate Tax compliance requirements.
UAE Corporate Tax FAQs 2026
What is the UAE Corporate Tax rate in 2026?
For standard taxable persons, UAE Corporate Tax is 0% on taxable income up to AED 375,000 and 9% on taxable income above AED 375,000.
Do Free Zone companies pay Corporate Tax in 2026?
Yes, Free Zone companies fall within the Corporate Tax framework. A Qualifying Free Zone Person can receive 0% treatment on Qualifying Income, while taxable income that is not Qualifying Income is generally subject to 9%.
What is Small Business Relief in UAE Corporate Tax?
Eligible Resident Persons with revenue of AED 3 million or less can elect for Small Business Relief where all applicable conditions are met.
What is the AED 375,000 Corporate Tax threshold?
The AED 375,000 threshold applies to taxable income under the standard Corporate Tax rate structure. It is not the same as the AED 3 million Small Business Relief revenue threshold.
Who needs to register for UAE Corporate Tax?
Registration obligations can apply to UAE juridical persons, Free Zone Persons, certain Non-Resident Persons and natural persons conducting UAE business activities above the applicable threshold.
When should I register for UAE Corporate Tax?
The deadline depends on the type of taxable person and applicable FTA rules. Natural persons exceeding AED 1 million in UAE business turnover in a calendar year generally register by 31 March of the following year.
What is a Qualifying Free Zone Person?
A QFZP is a Free Zone Person that satisfies the conditions required for preferential Free Zone Corporate Tax treatment.
Can Najoom help with Corporate Tax registration and compliance?
Yes. Najoom can assist with FTA registration preparation, QFZP assessment support, Small Business Relief review, bookkeeping alignment and Corporate Tax compliance coordination.
Najoom Corporate Services
Get UAE Corporate Tax Support in 2026
Need help understanding your Corporate Tax obligations? Najoom can support Mainland and Free Zone businesses with Corporate Tax registration, QFZP reviews, Small Business Relief assessment, accounting coordination and ongoing compliance preparation.