UAE Corporate Tax, explained.
Complete UAE Corporate Tax guide. 9% rate, AED 375,000 threshold, free zone QFZP rules, filing deadlines, and how ETX handles all of it.
9% above AED 375,000. Free zones get 0% if they qualify. Here's how all of it works.
UAE Corporate Tax — the basics
Corporate Tax came into effect for financial years starting on or after 1 June 2023. The standard rate is 9% on taxable income above AED 375,000. Below that, the rate is 0%.
Rates and thresholds
| Taxable income | Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
| Large multinationals (Pillar 2) | 15% (separate regime) |
Free zones — Qualifying Free Zone Person (QFZP)
Free zone entities can keep 0% on "Qualifying Income" if they meet QFZP criteria. The de minimis rule allows up to 5% (or AED 5M, whichever is lower) of non-qualifying revenue without losing QFZP status.
Qualifying activities include manufacturing, processing, trading from a designated zone, holding shares, and certain back-office services. Disqualifying activities include UAE-mainland sales to non-free-zone entities (unless via a UAE distributor).
How to file
Corporate Tax returns are due within 9 months of the financial year end. For most businesses, that means a 30 September deadline for a December year-end.
How ETX handles Corporate Tax
ETX tracks the AED 375,000 threshold continuously, runs free zone QFZP eligibility checks each quarter, and prepares the CT return from your trial balance. Group relief and transfer pricing schedules are supported.