The UAE introduced corporate tax at 9% on taxable profits above AED 375,000 for financial years starting on or after 1 June 2023. The first AED 375,000 of taxable income is always taxed at 0%.
Disclaimer: Results are estimates for informational purposes only and do not constitute financial or legal advice. Always consult with your HR department or a financial advisor for official figures.
The UAE corporate tax rate is 9% on taxable income above AED 375,000. The first AED 375,000 is taxed at 0%.
Qualifying Free Zone Persons meeting specific conditions pay 0% on qualifying income. Small businesses with revenue ≤ AED 3 million can elect for Small Business Relief, setting taxable income to zero.
UAE corporate tax applies to financial years starting on or after 1 June 2023 (Federal Decree-Law No. 47 of 2022).
Qualifying Free Zone Persons can benefit from a 0% rate on qualifying income, but must register and file returns. Non-qualifying income is taxed at 9% above AED 375,000.
Dividends received from UAE companies are generally exempt from corporate tax. Dividends from foreign companies may also qualify for a participation exemption.