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UAE corporate tax basics for small and growing companies

By the Cenqra team · Last reviewed 9 November 2026

The UAE has charged corporate tax on business profits for financial years starting on or after 1 June 2023. Most companies pay nothing on the first AED 375,000 of taxable income and 9% on the rest, but every company still has to register and file a return, even when no tax is due.

The rates

Taxable income	Rate
Up to AED 375,000	0%
Above AED 375,000	9%

Example: a company with taxable income of AED 500,000 pays 9% on AED 125,000 (the part above AED 375,000), which is AED 11,250.

Taxable income is not your revenue. It starts from the accounting profit in your financial statements, then adjusts it for tax rules: for example, only 50% of client entertainment is deductible, fines and penalties are not deductible, and some income is exempt. Large multinational groups can be subject to different rules.

Small Business Relief

• Available to UAE resident businesses with revenue of AED 3 million or less in the tax period and every earlier tax period.
• If you elect it, you are treated as having no taxable income for that period, and you can file a simpler return.
• It applies to tax periods ending on or before 31 December 2029 (it was originally due to end in 2026).
• It is not available to Qualifying Free Zone Persons or to members of large multinational groups, and splitting a business to stay under the limit is not allowed.
• You must still register and file a return each year to claim it.

Free zone companies

Free zone companies are within corporate tax. A Qualifying Free Zone Person can pay 0% on qualifying income if it meets the conditions (including adequate substance in the free zone, audited financial statements and staying within the limits on non-qualifying income). Other income is taxed at 9%. Free zone companies must register and file returns like everyone else.

Registration

• Companies set up on or after 1 March 2024 generally have 3 months from incorporation to register for corporate tax.
• Individuals running a business must register once their business turnover in a year exceeds AED 1 million. Salary and personal investment income do not count.
• Registering late carries an AED 10,000 penalty. The FTA has offered waivers to businesses that file their first return on time, so check the current terms.

Filing and paying

• File the return and pay the tax within 9 months after the end of your tax period. For a financial year ending 31 December 2025, the deadline was 30 September 2026.
• Returns are filed in EmaraTax.
• Late filing and late payment carry penalties, so diarise the date at the start of the year.

Records and financial statements

Keep your accounting records, invoices and supporting documents for at least 7 years after the end of the tax period. Financial statements generally follow IFRS (businesses with revenue under AED 50 million can use IFRS for SMEs). Audited financial statements are required for Qualifying Free Zone Persons and for businesses with revenue above AED 50 million.

How Cenqra helps

Cenqra estimates the corporate tax on your profit, lets your accountant mark accounts that are partly or not deductible (or exempt income), and carries this into the tax note of your IFRS financial statements, with deferred tax worked out for review. See financial statements in Cenqra.

Sources

• Federal Tax Authority: Corporate Tax
• UAE Ministry of Finance (Federal Decree-Law No. 47 of 2022 and Ministerial Decisions)
• Gulf News: UAE corporate tax deadlines, thresholds and filing rules
• Osome: Small Business Relief extended to 2029

This guide is general information, not tax advice. Check the FTA's latest guidance or a registered tax agent for your situation.