UAE Corporate Tax Rates
| Taxable Income | Corporate Tax Rate | Correct interpretation |
|---|---|---|
| Up to and including AED 375,000 | 0% | The first AED 375,000 of Taxable Income for a standard Taxable Person. |
| Above AED 375,000 | 9% | Only the portion above AED 375,000 is subject to the 9% rate for a standard Taxable Person. |
| Qualifying Free Zone Person | 0% / 9% | 0% on Qualifying Income; generally 9% on Taxable Income that is not Qualifying Income. |
Corporate Tax Calculator
This calculator uses Taxable Income, not company revenue.
For a standard Taxable Person, the first AED 375,000 of Taxable Income is subject to 0% and the portion above AED 375,000 is subject to 9%, before applicable tax credits or other statutory adjustments.
Why AED 375,000 is not a "business-income exemption"
The UAE Corporate Tax calculation starts with the Taxable Person's Taxable Income. The FTA describes Taxable Income as the accounting net profit or loss after the tax adjustments required under the Corporate Tax Law.
Therefore, a business can have revenue substantially above AED 375,000 and still have Taxable Income below AED 375,000. Conversely, revenue below AED 375,000 does not automatically determine the Corporate Tax result because revenue and Taxable Income are different concepts.
Worked Corporate Tax Examples
| Taxable Income | 0% Portion | 9% Portion | Corporate Tax |
|---|---|---|---|
| AED 300,000 | AED 300,000 | AED 0 | AED 0 |
| AED 375,000 | AED 375,000 | AED 0 | AED 0 |
| AED 500,000 | AED 375,000 | AED 125,000 | AED 11,250 |
| AED 1,000,000 | AED 375,000 | AED 625,000 | AED 56,250 |
| AED 2,000,000 | AED 375,000 | AED 1,625,000 | AED 146,250 |
These examples use the ordinary 0% / 9% rate structure and assume no other reliefs, tax losses, tax credits, exemptions or adjustments affect the final calculation.
Small Business Relief (SBR)
Small Business Relief is different from the ordinary AED 375,000 tax rate threshold. It is an elected relief regime for eligible Resident Persons.
| Requirement | Current position |
|---|---|
| Revenue threshold | AED 3,000,000 or less in the current and all previous Tax Periods, subject to the applicable relief rules. |
| Election | Must be elected for the relevant Tax Period. |
| Effect | Eligible person is treated as having not derived any Taxable Income for the Tax Period. |
| QFZP | A Qualifying Free Zone Person cannot elect SBR. |
| Large MNE groups | Members of multinational groups above the prescribed consolidated-revenue threshold are excluded. |
Corporate Tax registration
Registration is based on whether a person is subject to Corporate Tax and the applicable registration deadline. It is not accurate to say simply "every company must register" and stop there.
| Person / entity | Current principle |
|---|---|
| UAE juridical person subject to CT | Must register and obtain a Corporate Tax Registration Number within the prescribed timeline. |
| UAE Free Zone Person | Subject to the same Corporate Tax registration framework; free-zone status does not by itself remove registration obligations. |
| Natural person | Registration applies when the person conducts a business or Business Activity in the UAE and crosses the applicable revenue threshold. |
| UAE branch of a domestic company | Not separately registered because it is treated as an extension of its parent/head office. |
| Exempt Person | Certain exempt persons can still be required to register where the FTA requires it under the applicable rules. |
Qualifying Free Zone Person (QFZP)
A QFZP is not simply "a Free Zone company with 0% tax." The 0% rate applies to Qualifying Income, while Taxable Income that is not Qualifying Income is generally taxed at 9%.
| QFZP concept | Current treatment |
|---|---|
| Qualifying Income | 0% Corporate Tax, subject to all QFZP conditions. |
| Non-qualifying Taxable Income | Generally 9%. |
| Free Zone status | Does not automatically qualify the company for 0% on all income. |
| 2026 distribution compliance | Certain QFZPs relying on qualifying distribution of goods or materials in or from a Designated Zone are subject to additional FTA Decision No. 6 of 2026 procedures for tax periods beginning on or after 1 January 2026. |
2026 developments that should not be confused with ordinary CT
| Development | What it actually concerns |
|---|---|
| FTA Decision No. 6 of 2026 | Additional QFZP compliance procedures for certain qualifying distribution activities in or from Designated Zones, applying from tax periods beginning on or after 1 January 2026. |
| FTA Decision No. 12 of 2026 | Registration and deregistration requirements for entities within the Domestic Minimum Top-Up Tax / Pillar Two framework. It is not a replacement for the ordinary Corporate Tax registration regime. |
| Late-registration waiver initiative | The FTA currently provides a waiver mechanism for eligible taxpayers that satisfy the prescribed first-return timing and other conditions. |
Frequently Asked Questions
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Current official tax figures
| Ordinary CT threshold: | AED 375,000 |
| Ordinary CT rate above threshold: | 9% |
| SBR revenue threshold: | AED 3,000,000 |
| Late CT registration penalty: | AED 10,000 |
| QFZP: | 0% qualifying / 9% non-qualifying |
The AED 375,000 ordinary Corporate Tax threshold applies to Taxable Income. Small Business Relief uses a separate Revenue threshold. QFZP treatment uses a separate Qualifying Income framework. Registration and compliance deadlines depend on the taxpayer category and applicable FTA decisions.