UAE 9% Corporate Tax 2026 — Is Your Business Ready?

UAE Corporate Tax — The Basics

The UAE introduced Corporate Tax (CT) effective for financial years starting on or after 1 June 2023. The rate is 9% on taxable profits above AED 375,000. Profits up to AED 375,000 are taxed at 0%.

Who Must Register for Corporate Tax?

All UAE businesses must register, even if they qualify for 0% tax. This includes:

• UAE mainland companies (LLC, sole proprietorships, partnerships)
• Free zone companies (even those with 0% qualifying income)
• Foreign companies with a permanent establishment in UAE

Registration deadline: Within 3 months of your financial year start. Penalty for late registration: AED 10,000.

Small Business Relief

Businesses with revenue below AED 3,000,000 can elect for Small Business Relief until 31 December 2026. This means 0% CT and simplified compliance obligations.

Free Zone Companies

Qualifying Free Zone Persons (QFZPs) can benefit from a 0% rate on qualifying income. However:

• You must still register and file a CT return
• Income from UAE mainland transactions may be taxable at 9%
• Certain activities (banking, insurance) are excluded
• Substance requirements must be met in your free zone

Corporate Tax Filing Timeline

• CT return due: 9 months after financial year end
• Payment due: Same deadline as return
• Example: Financial year ending 31 Dec 2024 → return due 30 Sep 2025

What Counts as Taxable Income?

Accounting profit (from financial statements) adjusted for:

• Exempt income (qualifying dividends, capital gains)
• Non-deductible expenses (entertainment > 50%, interest above threshold)
• Transfer pricing adjustments (related party transactions at market value)

ETX Corporate Tax Module

ETX Enterprise includes a Corporate Tax module that tracks taxable vs exempt income, calculates your CT liability automatically, and generates the FTA-required return. Book a demo to see how it works for your business.