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Verified 2026 compliance rules, calculators, and official frameworks.
UAE Corporate Tax (9%), Free Zone QFZP & Business Setup
The UAE provides one of the world’s most dynamic commercial ecosystems, offering 100% foreign mainland company ownership and over 40 specialized Free Zones (such as DIFC, ADGM, DMCC, and JAFZA). While the UAE maintains 0% personal income tax, businesses are subject to Federal Corporate Tax (9%) with Qualifying Free Zone Person (QFZP) exemptions on qualifying income and 5% Value Added Tax (VAT).
Key 2026 Statutory & Regulatory Checkpoints:
- Qualifying Free Zone Person (QFZP) criteria: maintaining economic substance and deriving qualifying income to benefit from 0% corporate tax.
- Small Business Relief (SBR) exempting businesses with revenue under AED 3 million from corporate tax through tax year 2026.
- Tax Residency Certificates (TRC) issuance under the 183-day or 90-day primary residency rules for international tax treaties.
Frequently Asked Questions: Tax & Business
No. The UAE does not levy any personal income tax on salaries, investments, capital gains, or individual bank interest.
A Free Zone entity must qualify as a Qualifying Free Zone Person (QFZP) by maintaining adequate substance in the Free Zone, deriving qualifying income from transactions with other Free Zone entities or foreign entities, and complying with transfer pricing rules.