The headline rate
The UAE applies 9% corporate tax on taxable profit above AED 375,000; profit below that is taxed at 0%. The regime is among the most competitive globally.
Free-zone qualifying income
Qualifying free-zone persons can access a 0% rate on qualifying income, provided they meet substance requirements and other conditions. Non-qualifying income is taxed at 9%.
Registration and filing
In-scope businesses must register with the Federal Tax Authority and file an annual corporate tax return. Accurate accounting records and, for groups, transfer-pricing documentation are essential.
Planning considerations
Group structure, free-zone status and related-party pricing all affect your effective tax. Planning early — ideally at setup — avoids restructuring later.
Frequently asked questions
Who pays UAE corporate tax?
Most UAE businesses with taxable profit above AED 375,000, including many free-zone entities on non-qualifying income.
Do free zones still get 0%?
Qualifying free-zone persons can on qualifying income, but must meet substance and other conditions.
About the author
Omega Global Editorial · Editorial Team
Practitioners from Omega Global's Technology, Marketing, Finance and Construction practices, writing on doing business across Saudi Arabia, the UAE and Oman.