UAE Corporate Tax: Complete 2026 Guide
The UAE Corporate Tax system applies to businesses and certain business activities in the UAE. Corporate Tax applies to financial years beginning on or after 1 June 2023.
Understanding the applicable tax rate, taxable income, registration requirements and filing deadlines can help businesses meet their UAE Corporate Tax obligations.
What Is the UAE Corporate Tax Rate?
The UAE Corporate Tax rate is 0% on taxable income up to AED 375,000 and 9% on taxable income exceeding AED 375,000. Corporate Tax is calculated on taxable income after applying the relevant adjustments and provisions under the UAE Corporate Tax Law.
Businesses should therefore distinguish between revenue, accounting profit and taxable income when determining their Corporate Tax liability.
Who Needs to Register for Corporate Tax?
Taxable persons are required to register for UAE Corporate Tax and obtain a Corporate Tax Registration Number (TRN) in accordance with the applicable legislation and FTA requirements. Registration is completed through the EmaraTax platform.
Registration requirements depend on the type of taxable person. For example, a natural person conducting a business or business activity in the UAE is required to register when their annual business revenue exceeds AED 1 million. Certain exempt persons may also be required to register under applicable rules.
Registration deadlines vary according to the type of taxable person and applicable legislation, so businesses should check their specific deadline rather than rely on a general date.
Small Business Relief
Eligible UAE Resident Persons may elect for Small Business Relief if they meet the applicable conditions.
The revenue threshold is AED 3 million or less for the relevant Tax Period and applicable previous Tax Periods. The Ministry of Finance has extended the availability of the relief to Tax Periods ending on or before 31 December 2029.
Where the conditions are met and the relief is validly elected, the Resident Person is treated as having no Taxable Income for the relevant Tax Period. However, Small Business Relief is subject to specific eligibility conditions and is not available to certain taxpayers, including Qualifying Free Zone Persons and members of certain multinational enterprise groups.
Corporate Tax Compliance
Businesses subject to Corporate Tax should maintain appropriate financial records, calculate taxable income correctly, submit their Corporate Tax Returns and pay any Corporate Tax due within the applicable deadlines.
Generally, Corporate Tax Returns and Corporate Tax payable must be submitted and paid within 9 months from the end of the relevant Tax Period. Taxpayers should also retain the required records and documents for the prescribed period.
Corporate Tax is an ongoing compliance responsibility, not simply a registration requirement.
Need help with UAE Corporate Tax? Bexford can help businesses understand their Corporate Tax registration and compliance requirements.
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