Corporate Tax in UAE — Rates, Registration, Exemptions & Deadlines

What Is Corporate Tax?

Corporate tax is a direct tax on the profits earned by businesses. The UAE's Corporate Tax Law, introduced on December 9, 2022, came into effect on June 1, 2023. While this marks a shift from the country's traditional tax-free status, the rates remain among the lowest globally.

Corporate Tax Rates

• 0% on taxable income up to AED 375,000
• 9% on taxable income above AED 375,000
• 15% minimum top-up tax for large MNEs (from January 1, 2025, under the OECD Two-Pillar Solution — applies to companies with revenues over €750 million)

Who Needs to Register?

Resident Businesses

A business is considered resident if it is incorporated in the UAE (mainland, free zone, or offshore) or is a foreign entity managed and controlled from the UAE. Resident businesses are taxed on their worldwide income.

Registration Deadlines

Registration deadlines depend on your trade license issuance month:

• January – February: May 31, 2024
• March – April: June 30, 2024
• May: July 31, 2024
• June: August 31, 2024
• July – August: September 30 – October 31, 2024
• September – December: October 31 – December 31, 2024

If your company has multiple licenses, the deadline is based on the earliest license issuance date. Late registration incurs a fine of AED 10,000.

Non-Resident Businesses

Foreign entities with a permanent establishment in the UAE must register within 9 months of establishing presence. Those creating a nexus after March 1, 2024 must register within 3 months.

Who Is Exempt from Corporate Tax?

• Government entities and government-controlled entities
• Extractive industries (oil, gas, mining)
• Public benefit entities and charities
• Pension and social security funds
• Small businesses with revenues under AED 3 million (via Small Business Relief)

Small Business Relief

Businesses with revenues under AED 3 million may qualify for Small Business Relief, exempting them from corporate tax until December 31, 2026. Read our detailed Small Business Relief guide for eligibility criteria and how to apply.

Free Zone Businesses

Businesses in UAE free zones may qualify for a 0% rate on qualifying income, provided they:

• Maintain real physical presence (substance) in the free zone
• Engage in qualifying activities (manufacturing, logistics, financial services, etc.)
• Comply with transfer pricing rules and financial reporting requirements
• Meet the de minimis revenue test

Income from non-qualifying activities (e.g., banking or mainland real estate) is still subject to the standard 9% rate.

Filing Your Corporate Tax Return

Once registered, file your first return within 9 months after the end of your financial year. If your fiscal year ends December 31, your first return is due by September 30, 2025.

You must retain all records for at least 7 years for potential audits and future assessments.

How to Stay Compliant

• Register on time — submit your application by the deadline based on your license date
• Keep proper records — maintain accurate financials for at least 7 years
• File returns on time — late filing triggers penalties
• Get professional help — the system is new and evolving

How Fair Tax International Can Help

Our corporate tax team provides end-to-end support — obtaining your TRN, preparing and filing returns, tax planning, and FTA correspondence management. Contact us for a free consultation.