Corporate Tax UAE Filing Date
14/10/2026
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Yes, Dubai has Corporate Tax. The United Arab Emirates introduced a federal Corporate Tax system that applies to businesses across Dubai and the other emirates for financial years beginning on or after 1 June 2023. The standard rate is 9% on taxable income exceeding AED 375,000, while taxable income up to AED 375,000 is generally subject to a 0% rate. Specific rules apply to qualifying free zone businesses, exempt entities and certain individuals.
If you own a mainland company, operate a free zone business or plan to establish a company in Dubai, understanding Corporate Tax is essential for managing your tax obligations. Young & Right can help businesses understand UAE Corporate Tax requirements, organise their financial records and prepare for tax compliance.
Corporate Tax is a direct tax imposed on the taxable income of companies and other businesses under UAE law. Although many people associate Dubai with a tax-friendly business environment, businesses operating in Dubai may be subject to federal Corporate Tax.
The UAE Corporate Tax framework is governed by Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, together with its implementing decisions and subsequent amendments.
Corporate Tax generally applies to UAE companies and other juridical persons, including eligible businesses established in free zones. Certain non-resident companies may also be subject to tax on income connected to a taxable presence in the UAE.
The tax is calculated on taxable income, not automatically on total sales or revenue. Taxable income is determined under the applicable legislation, taking into account relevant adjustments, deductions, exemptions and reliefs.
The general UAE Corporate Tax rates are:
|
Taxable income |
General Corporate Tax rate |
|
Up to AED 375,000 |
0% |
|
Above AED 375,000 |
9% on the portion exceeding AED 375,000 |
These rates apply under the standard Corporate Tax regime, subject to the applicable legislation and special rules.
Suppose a company has taxable income of AED 500,000 for a tax period.
This is a simplified example that assumes the full AED 500,000 is taxable income under the standard regime and that no other adjustments or reliefs apply.
A business with AED 300,000 in taxable income would generally have no Corporate Tax payable under the standard rate structure. However, it may still have registration, return-filing and record-keeping obligations.
Corporate Tax applies to many businesses, but the treatment depends on the type of entity, its activities, income and applicable exemptions.
Dubai mainland companies are generally within the scope of UAE Corporate Tax. This includes many limited liability companies and other incorporated businesses.
A mainland company should determine its taxable income, assess applicable deductions and reliefs, register where required, and file its Corporate Tax return within the applicable deadline.
Free zone businesses are also within the scope of the UAE Corporate Tax framework. However, a company that qualifies as a Qualifying Free Zone Person (QFZP) may benefit from a 0% rate on its qualifying income if it satisfies the relevant legal conditions.
Income that does not qualify for the 0% treatment may be subject to the standard 9% rate. Special rules apply to qualifying free zone businesses, including how non-qualifying taxable income is taxed.
Simply having a free zone licence does not automatically guarantee a 0% Corporate Tax rate. Businesses should review their activities, income sources and compliance requirements before assuming they qualify.
Small businesses may benefit from the standard 0% rate on taxable income up to AED 375,000. Eligible businesses may also consider Small Business Relief, subject to the applicable conditions and the relevant tax period.
Small Business Relief is not automatic for every small company. Businesses must check eligibility, make the required election where applicable and meet the relevant compliance obligations.
An individual is not automatically subject to Corporate Tax simply because they live or work in Dubai.
Natural persons conducting business or business activities in the UAE generally fall within the Corporate Tax regime when their annual business turnover exceeds AED 1 million, subject to the relevant rules and exclusions.
Employment salary, personal investment income and qualifying real estate investment income are generally excluded from the calculation of this business-turnover threshold under the applicable rules.
Individuals should assess their actual activities and income rather than assuming all personal income is subject to Corporate Tax.
Corporate Tax is generally based on taxable income, rather than gross revenue.
Revenue is the money a business earns from selling products or providing services. Taxable income is calculated under UAE Corporate Tax legislation and may differ from the profit shown in the company's accounts.
For example, a company might earn AED 2 million in revenue and record AED 400,000 in accounting profit. Its final taxable income could differ depending on permitted deductions, tax adjustments, exempt income and other applicable rules.
Businesses should therefore avoid calculating Corporate Tax simply by applying 9% to total sales.
Accurate accounting records and a review of tax adjustments are important for determining the correct amount.
Businesses that qualify as taxable persons generally need to register with the Federal Tax Authority (FTA) and obtain a Corporate Tax Registration Number, subject to applicable exceptions and rules.
The general process involves:
Corporate Tax registration deadlines can vary according to the type of taxable person and the applicable FTA decisions. Businesses should check the deadline relevant to their legal status rather than relying on a single date for every company.
For assistance, visit Young & Right's Corporate Tax Registration Services.
The general rule is that a Corporate Tax return must be submitted and any tax due must be paid within nine months after the end of the relevant tax period.
For example, a company whose tax period ends on 31 December 2025 would generally need to submit its return and pay the tax due by 30 September 2026.
The deadline depends on the company's actual tax period. Businesses should maintain a compliance calendar and begin preparing financial statements and tax calculations well before the due date.
Even where a company expects no Corporate Tax to be payable, it should check whether a return is required. Having a 0% tax rate does not automatically remove all filing obligations.
Young & Right can support businesses with Corporate Tax Services in the UAE, including tax compliance planning and assistance with return preparation.
Maintaining reliable records helps businesses calculate taxable income and support the figures reported to the FTA.
Relevant documents may include:
Businesses should retain the records required under UAE law for the applicable retention period. Additional documentation may be necessary for transfer pricing, free zone tax treatment or other specific circumstances.
Failure to meet applicable Corporate Tax obligations can lead to administrative penalties and other compliance issues.
Potential problems include:
The consequences depend on the nature of the breach and the applicable legislation. Businesses should consult current FTA guidance for the relevant penalty rules.
A practical way to reduce compliance risks is to keep financial records updated, monitor deadlines, review tax calculations and seek professional assistance when the rules are unclear.
Understanding whether your company is subject to Corporate Tax is only the first step. Businesses must also manage registration, financial reporting, tax calculations, filing deadlines and record-keeping requirements.
Young & Right can support businesses with Corporate Tax-related compliance and accounting services, depending on their needs.
Support may include:
For tailored guidance, visit Young & Right's Corporate Tax Services or Corporate Tax Registration.
Get expert guidance on UAE Corporate Tax registration, tax rates, filing requirements, and compliance. Young and Right helps businesses understand their tax obligations and manage Corporate Tax requirements with confidence.
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