Guide
UAE Corporate Tax: the basics for new companies
Every UAE company now needs to understand Corporate Tax from day one. Here are the essentials to plan for when you set up.
Key points
When it applies
Corporate Tax applies to financial years starting on or after 1 June 2023.
The rates
0% on taxable income up to AED 375,000 and 9% on taxable income above that amount.
Registration
Companies must register with the Federal Tax Authority through EmaraTax, even if no tax is due.
Small Business Relief
Eligible resident businesses with revenue up to AED 3 million can elect relief for tax periods ending on or before 31 December 2026.
Free zone companies
Qualifying Free Zone Persons may apply 0% to qualifying income if they meet all conditions.
Returns and records
Returns are due within nine months of the end of the tax period, and records must be kept for seven years.
What new companies should do
Building tax compliance into your setup avoids penalties and makes your first return straightforward.
- Register for Corporate Tax within the required deadline
- Keep proper accounting records from the first day of trading
- Check whether VAT registration is also required
- Review whether free zone or Small Business Relief rules apply to you
- Diarise your tax period end and filing deadline
This guide is general information
Corporate Tax rules include detailed conditions and exceptions. This guide is not tax advice — please speak to a registered tax adviser about your specific situation. We can help with registration and refer you to qualified tax professionals.
Frequently asked questions
Do I need to register if my company makes no profit?
Yes. Registration is required for companies within the scope of Corporate Tax regardless of whether tax is payable.
Is there a penalty for late registration?
Yes. Administrative penalties apply for late registration, so it is important to register on time.
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