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A plain-language overview of UAE corporate tax rates, taxable income, filing timing, records, and free zone considerations.
Taxable income, not turnover
The general UAE corporate tax rate is 0% on the first AED 375,000 of taxable income and 9% on the amount above that threshold. Taxable income is not the same as gross sales or cash received. Accounting income is a starting point and can require tax adjustments under the law.
Registration and filing
A taxable person may need to register even where taxable income falls below the AED 375,000 rate threshold. Corporate tax returns and payment are generally due within nine months from the end of the relevant tax period, unless a different deadline applies. Check the FTA account and current rules for your entity.
Free zone considerations
Qualifying free zone persons can receive different treatment for qualifying income when the relevant conditions are met. Merely being located in a free zone does not establish that every amount of income receives a 0% rate. Entity facts and activities need specific review.
Build from reliable records
Keep accounting records and supporting documents that explain income, expenses, adjustments, and related transactions. UAE corporate tax records are generally retained for seven years after the end of the tax period. A monthly close gives the annual return a more reliable starting point.
This is general information as at 4 November 2026. Current rules and your business circumstances determine the right action.
Official sources
Common questions
Is the 9% rate applied to all revenue?
No. The general rates relate to taxable income, with 9% applying to the amount above AED 375,000.
Does a small business still need to register?
Registration requirements can apply even where taxable income is below the 9% rate threshold. Check the current requirements for the entity.