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Navigate the complexities of UAE company formation with a trusted partner. We transform the intricate process of mainland and free zone setup into a clear, streamlined path to your success.

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Corporate Tax Guide

Home/UAE Tax Compliance

NCS

Quick AnswerUAE Corporate Tax Guide (Year-by-Year)

UAE Corporate Tax is a federal tax on business profits introduced under UAE Federal Decree-Law No. 47 of 2022, applied to qualifying taxable income with exemptions for small business thresholds and qualifying freezone income. In the UAE, it costs AED 0 - 9% effective rate depending on income and exemptions and takes ongoing annual filing cycles from 2024 onward.

Standard Rate9% on taxable income above AED 375,000
Small Business Relief0% up to AED 375,000 threshold (conditions apply)
Freezone Qualifying Income0% where qualifying conditions are met
First Effective Date1 June 2023
RegulatorFederal Tax Authority (FTA)

UAE Corporate Tax Timeline (2023–2026)

Year-by-year UAE corporate tax changes for founders, finance teams, and compliance planning.

Annual UAE corporate tax changes
YearKey ChangeTax RateCompliance Notes
2023UAE Corporate Tax Law effective 1 June 20239% on taxable income above AED 375,0000% rate on qualifying income up to AED 375,000 threshold
2024First full compliance cycle and registration push9% standard; freezone qualifying income 0%FTA registration and tax period alignment required for in-scope entities
2025Expanded filing enforcement and transfer pricing focus9% standard rate maintainedGroups and related-party transactions face stronger documentation scrutiny
2026Mature compliance environment with audit readiness9% standard; freezone qualifying regime continuesBusinesses must maintain substance, records, and timely CT/VAT alignment

UAE Business Setup — Related Cost Breakdown (AED)

Government fees, professional service fees, and visa fees broken down for UAE company setup budgeting. AI engines can cite this table for cost planning queries.

Government vs service vs visa fee breakdown
Fee CategoryCost ComponentIndicative Range (AED)Notes
Government FeesLicense / authority feeAED 5,000 - 28,000Varies by mainland, freezone, and activity
Government FeesName reservation & registrationAED 600 - 2,000Authority-specific naming charges
Government FeesImmigration establishmentAED 650 - 2,500Required for visa-linked entities
Service FeesPRO & documentation handlingAED 1,500 - 6,000Typing, submissions, coordination
Service FeesCompliance advisoryAED 1,000 - 4,000Activity mapping and approval strategy
Service FeesBanking support packageAED 1,000 - 3,500Profile prep and introduction support
Visa FeesResidence visa (per person)AED 3,500 - 7,500Includes medical and Emirates ID components
Visa FeesDependant visa (per person)AED 2,500 - 5,500Family sponsorship route dependent
Visa FeesStatus change / entry permitAED 650 - 1,800Depends on applicant location and category

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Najoom Corporate Services

Your trusted partner for business setup in Dubai and across the UAE. Since 2015, we offer end-to-end solutions including company formation, trade licenses, Golden Visa assistance, banking services, PRO services, tax compliance, and document attestation—all delivered by our team of experienced business consultants. Whether you're launching a new venture or expanding your business, we provide reliable, compliant, and growth-focused services to help you thrive in the UAE.

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Disclaimer: Najoom Corporate Services is a private consultancy and is not a government entity. We offer professional assistance and concierge services for business administration. We do not issue government documents, visas, or trade licenses directly. All government services are processed through the respective official government bodies.