Corporate tax in the United Arab Emirates
The UAE federal corporate tax applies to financial years beginning on or after 1 June 2023. Taxable income up to AED 375,000 is taxed at 0% and the excess at 9%. Every taxable person, including free zone companies, must register with the Federal Tax Authority, and the return and payment are due within nine months of the end of the tax period. Large multinational groups are also subject to a 15% Domestic Minimum Top-up Tax from financial years beginning on or after 1 January 2025.
Key facts
| Rates | 0% up to AED 375,000 of taxable income; 9% above |
|---|---|
| In force | Financial years beginning on or after 1 June 2023 |
| Return and payment | Within nine months of the end of the tax period |
| Small business relief | Revenue of AED 3 million or less, for tax periods ending on or before 31 December 2029 (extended by Ministerial Decision 131/2026) |
| Qualifying free zone person | 0% on qualifying income, 9% on the rest |
| Domestic Minimum Top-up Tax | 15% for groups with revenue of EUR 750 million or more, from 1 January 2025 |
| Authority | Federal Tax Authority (FTA) |
Opens the assistant with United Arab Emirates already selected. Answers cite the law, guidance and cases they rest on.
Transfer pricing and the disclosure form
Related-party and connected-person transactions must be at arm's length. A transfer pricing disclosure form is filed with the corporate tax return when related-party transactions exceed AED 40 million in aggregate (AED 4 million per category) or connected-person payments exceed AED 500,000, and a master file and local file must be maintained where the group's consolidated revenue is AED 3.15 billion or more or the taxable person's own revenue is AED 200 million or more.
Free zones
A qualifying free zone person pays 0% on qualifying income and 9% on other income, provided it maintains adequate substance, earns qualifying income within the de minimis limits and does not elect out. Failing a condition removes the benefit for the year and the following four.
Exempt persons and reliefs
Government entities are exempt automatically, qualifying public benefit entities when listed in a Cabinet Decision, and pension funds and qualifying investment funds on application to the FTA. Participation exemption, group relief, business restructuring relief and tax groups are available on conditions, and interest deductions are capped at 30% of EBITDA above a de minimis amount.
Frequently asked questions
- What is the UAE corporate tax rate?
- 0% on taxable income up to AED 375,000 and 9% on the amount above it. Large multinationals face a 15% top-up from 2025.
- When is the UAE corporate tax return due?
- Within nine months of the end of the relevant tax period, with payment by the same date.
- When must a transfer pricing disclosure form be filed in the UAE?
- With the corporate tax return, where related-party transactions exceed the FTA's thresholds for the period.
Primary sources
- Federal Tax Authority — Corporate tax
- Ministry of Finance — Corporate tax legislation
- Federal Tax Authority (FTA) and Ministry of Finance
Related guides
Disclaimer: This page provides general tax information based on publicly available primary sources, reviewed on the date shown. Rules are conditional and change; the page may not reflect a change made after that date, and it is not a substitute for advice from a qualified tax professional on your specific situation.