Form a UAE company
UAE tax guide 2026

UAE corporate tax for founders: 0%, 9%, and which applies to you

Updated 10 November 2026Ministerial Decision 131 of 2026 includedAbout 13 minutes to read
The short answer

A UAE company pays 0% on its first AED 375,000 of taxable income and 9% above. A free zone company can pay 0% on more, but only on qualifying income, and only if it meets every condition.

Small companies with revenue up to AED 3 million can choose relief that taxes nothing, for periods ending by 31 December 2029. People pay no income tax at all. Every company still registers and files.

Work out my tax Does the free zone 0% apply?
Since 2023 9% UAE corporate tax above AED 375,000 0% below it. Qualifying free zone income can stay at 0%, but only if every condition is met.

"No tax in Dubai" stopped being true in 2023. The UAE now taxes company profit, and the free zone 0% has conditions most pages skip. Here are the rates, the conditions and the dates, from the law and the tax authority's own decisions.

Key takeaways

Chapter 1

UAE corporate tax rate: 0%, 9% and 15%

AED 1 million of taxable incomeMainland or non-qualifying
First AED 375,000 at 0%AED 0
Next AED 625,000 at 9%AED 56,250
Corporate taxAED 56,250
Effective rate5.6%
Your home country: pick it

Every UAE company is a taxable person. What it pays depends on its income, its size and its status. Try yours.

AED
Revenue for the year
Status

The rates come from Federal Decree-Law No. 47 of 2022. This is a guide, not tax advice: taxable income is after allowable deductions.

1
Key takeaway

0% to AED 375,000, then 9%. The 15% top-up only reaches very large groups.

Chapter 2

Free zone 0% corporate tax: does your company qualify?

A Qualifying Free Zone Person pays 0% on qualifying income. Fail one condition and the whole company pays 9% above AED 375,000, for that year and the next four. Check yours.

Real substance in the UAE: staff, premises, decisions?
Audited financial statements each year?
Who are your customers, mostly?
Non-qualifying revenue

The conditions are set by Article 18 of the Corporate Tax Law, and qualifying activities are listed in Ministerial Decision 229 of 2025; we check yours before you choose a zone.

2
Key takeaway

Free zone 0% is a status you keep by meeting every condition, every year.

Chapter 3

Do RAK ICC companies pay UAE corporate tax?

A RAK ICC company is a UAE taxable person under the corporate tax law. It registers and files like any other company, even if it earns nothing in the UAE. Banks look at the same company more closely: UAE company bank account.

What applies
  • Registration with the Federal Tax Authority
  • A yearly return, within nine months of year end
  • The same 0% band up to AED 375,000
What it can't get

How RAK ICC companies sit within the free zone rules is being clarified in 2026. We confirm the position for your company before you form. See our RAK ICC company page.

3
Key takeaway

A RAK ICC company registers and files, and can't get a UAE residency certificate.

Chapter 4

UAE small business relief, extended to 2029

A company with revenue of AED 3 million or less can elect to be treated as having no taxable income. Ministerial Decision 131 of 2026 extended it to tax periods ending by 31 December 2029.

AED 3mRevenue limit, every year you claim
2029Last year end it covers: 31 December
Not forQualifying free zone companies or large group members

You still register and file a return to claim it. Choosing relief means giving up carrying losses forward for those years.

4
Key takeaway

Revenue up to AED 3 million can pay nothing until 2029, but you still file.

Chapter 5

UAE corporate tax registration and filing deadlines

Two dates matter: registration within three months of incorporation, and each return nine months after the year end. Enter yours. Licence renewals sit alongside them in UAE annual fees and filings.

Financial year ends in

    Late registration costs AED 10,000. The authority waives it when the first return is filed within seven months of the first year end.

    5
    Key takeaway

    Register within three months; file nine months after each year end.

    Chapter 6

    UAE personal income tax and tax residency

    The UAE taxes no individual's salary, investment income or gains. Dividends from your company reach you with 0% withheld. Whether you owe tax elsewhere depends on where you're resident.

    A UAE residency certificate, for individuals
    For companies

    6
    Key takeaway

    No personal income tax in the UAE. Your home country may still have a say.

    Chapter 7

    UAE VAT and other taxes

    5%VAT on most goods and services
    AED 375kRevenue that makes VAT registration compulsory
    AED 187.5kFrom which you may register voluntarily
    0%Personal income and capital gains tax
    0%Withholding on dividends, interest and royalties paid abroad
    137Tax treaties the Ministry of Finance lists
    7
    Key takeaway

    VAT is 5%, compulsory above AED 375,000 of taxable supplies.

    Chapter 8

    UAE tax questions, answered

    ?!
    What is the corporate tax rate in the UAE?
    0% on taxable income up to AED 375,000 and 9% above it. Groups with revenue of EUR 750 million or more pay a 15% domestic top-up.
    Do free zone companies pay 0% tax?
    Only qualifying free zone companies, and only on qualifying income. They need substance, audited accounts and limited non-qualifying revenue; other income is taxed at 9%.
    When does UAE small business relief end?
    It covers tax periods ending by 31 December 2029, after the 2026 extension. Revenue must be AED 3 million or less.
    Do individuals pay income tax in the UAE?
    No. Salaries, investment income and gains of individuals aren't taxed in the UAE.
    When must a new company register for corporate tax?
    Within three months of incorporation. Missing it costs AED 10,000, waived if the first return is filed within seven months of the first year end.
    Does a RAK ICC company need to register for corporate tax?
    Yes. It's a UAE taxable person and files a yearly return, though it can't get a UAE tax residency certificate.
    Is the UAE on the EU tax blacklist?
    No. The UAE was on the EU list from December 2017 to January 2018 and again from March to October 2019, and it is on neither EU list after the 9 October 2026 update. The full record is in our EU tax blacklist guide.
    Do you handle UAE tax registration?
    Our UAE free zone company includes corporate tax registration. The yearly return and audit are quoted with an accountant.

    Changelog

    • 10 November 2026: first published.
    • 13 November 2026: official sources linked in the text.
    Your UAE company

    A UAE free zone company, with the tax registration done for you.

    From AED 6,069 in year one, licensed without a visit.

    See the UAE company RAK ICC instead