Estimate your UAE Corporate Tax in 60 seconds.

The UAE Corporate Tax regime applies to all UAE-resident juridical persons (mainland and free zone companies) and to natural persons running a business if their annual business turnover exceeds AED 1,000,000 in a Gregorian calendar year. CT is charged at 0% on the first AED 375,000 of taxable income and 9% above that. Government entities, qualifying investment funds, and businesses engaged in the extraction of natural resources may be exempt under specific articles of the CT Law.

Small Business Relief, introduced by Ministerial Decision No. 73 of 2023, lets a UAE business with annual revenue of AED 3,000,000 or less elect to be treated as having zero taxable income for the period, resulting in AED 0 corporate tax due. It applies to tax periods that end on or before 31 December 2026. SBR is an annual election: businesses opt in via the tax return each year they qualify. Multinational group members and Qualifying Free Zone Persons cannot use SBR.

Revenue is the gross income your business earns: total sales, fees, commissions and other receipts before any deductions. Taxable income is what's left after subtracting deductible expenses (rent, salaries, utilities, depreciation), qualifying exempt income (such as dividends from UAE companies), and applying loss carry-forwards capped at 75% of the period's profit. UAE Corporate Tax is calculated on taxable income, not revenue, so two businesses with the same revenue can owe very different amounts of tax.

The Tax Return and any tax due must be filed and paid within 9 months of the end of your tax period (Article 53 of the CT Law). For a 1 January – 31 December 2024 financial year, the deadline is 30 September 2025. For a 1 July 2024 – 30 June 2025 financial year, the deadline is 31 March 2026. There are no automatic extensions, so calendar reminders are essential. Returns are filed through the EmaraTax portal operated by the Federal Tax Authority.

Yes. Free zone companies are within scope of the UAE CT regime, but they may benefit from a 0% rate on Qualifying Income if they meet the Qualifying Free Zone Person (QFZP) conditions: maintain adequate substance in the UAE, derive qualifying income from qualifying activities, comply with transfer pricing rules, and meet the de minimis requirement for non-qualifying income (under 5% or AED 5M, whichever is lower). Non-qualifying income earned by a QFZP is taxed at 9% with no AED 375,000 band.

A freelancer (natural person) only falls within scope of UAE Corporate Tax once their business turnover exceeds AED 1,000,000 in a Gregorian calendar year (Cabinet Decision No. 49 of 2023). Salaries, employment income, personal investment income, and personal real estate investment income are not counted toward the threshold. Once over AED 1M, the freelancer must register with the FTA, file a tax return, and pay 9% on taxable income above AED 375,000. Small Business Relief may still apply.

Late filing and late payment of UAE Corporate Tax both trigger administrative penalties under the Tax Procedures Law. The FTA imposes a penalty for late submission of the Tax Return: AED 500 per month for the first 12 months and AED 1,000 per month thereafter. Late payment of CT due is subject to monthly penalties at 14% per annum of the unpaid tax. Repeated non-compliance can lead to audits, additional penalties and risk to trade-licence renewal.