August 7, 2026 · Gullia Filing Team
UAE Corporate Tax 2026: 9% Rate, Exemptions and Filing Rules
A comprehensive guide to UAE Corporate Tax in 2026. Understand the 9 percent profit threshold, Qualifying Free Zone Person status, and mandatory filing deadlines.
UAE corporate tax applies at 0% on taxable income up to AED 375,000 and 9% above that threshold. Qualifying free zone persons can still access a 0% rate on qualifying income, and eligible small businesses can elect Small Business Relief to be treated as having no taxable income for a tax period. Almost every business with a UAE licence must register with the Federal Tax Authority (FTA) through EmaraTax, even when no tax is payable.
Last reviewed: August 2026. UAE corporate tax rules are set by Federal Decree-Law No. 47 of 2022 and subsequent Cabinet and Ministerial Decisions, which continue to be updated. Verify current positions on the Federal Tax Authority site before relying on them.
UAE corporate tax rates in 2026
| Taxable income | Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
| Qualifying income of a Qualifying Free Zone Person | 0% |
| Non-qualifying income of a Qualifying Free Zone Person | 9% |
Large multinational groups within scope of the OECD Pillar Two rules face a separate domestic minimum top-up tax regime; that is a distinct charge from the 9% corporate tax and has its own thresholds and effective dates. Check current FTA and Ministry of Finance guidance if your group's consolidated revenue is at that scale.
Who is within scope
- UAE mainland companies and other juridical persons incorporated in the UAE, on their worldwide income.
- Free zone companies, which are within the regime but may qualify for 0% on qualifying income.
- Foreign companies effectively managed and controlled in the UAE, or with a UAE permanent establishment or UAE-sourced income.
- Natural persons carrying on a business or business activity in the UAE where turnover exceeds AED 1 million in a Gregorian calendar year.
Employment income, personal investment income and personal real estate income of individuals generally fall outside the regime. There is still no personal income tax on salaries in the UAE.
Exemptions and exclusions
Certain persons are exempt, subject to conditions and in some cases application to the FTA or the Cabinet:
| Category | Typical basis for exemption |
|---|---|
| Government entities and government-controlled entities | Exempt, with conditions where they carry on a business |
| Extractive and non-extractive natural resource businesses | Subject to Emirate-level taxation instead |
| Qualifying public benefit entities | Listed by Cabinet Decision |
| Qualifying investment funds | On meeting prescribed conditions |
| Public and private pension and social security funds | On meeting prescribed conditions |
Separately, participation exemption and foreign permanent establishment exemption rules can remove qualifying dividends, capital gains and foreign branch profits from the tax base. Dividends and other profit distributions received from UAE juridical persons are generally exempt.
Small Business Relief
An eligible resident person with revenue at or below AED 3 million in the current and all previous relevant tax periods can elect Small Business Relief and be treated as having no taxable income for that period. The relief is elective, must be claimed in the return, and is available for tax periods ending on or before 31 December 2026 under the current Ministerial Decision.
Electing has consequences: you cannot use tax losses or net interest expenditure carryforwards generated in a relief period in later periods. Qualifying free zone persons and members of large multinational groups cannot claim it.
We cover eligibility, the election mechanics and the trade-offs in the dedicated UAE Small Business Relief guide.
Free zone companies: the 0% rate is conditional
A Qualifying Free Zone Person (QFZP) pays 0% on qualifying income and 9% on everything else. Meeting the definition is not automatic; all of the following must hold:
- Maintain adequate substance in the free zone, with real people, assets and operating expenditure matched to the core income-generating activities.
- Derive qualifying income as defined by Cabinet Decision.
- Not have elected to be subject to the standard 9% regime.
- Comply with arm's length transfer pricing rules and documentation.
- Prepare audited financial statements.
- Keep non-qualifying revenue within the de minimis limit: the lower of 5% of total revenue or AED 5 million.
Breach a condition and the person generally loses QFZP status for that tax period and the following four tax periods, taxed at 9% throughout. Qualifying income broadly covers transactions with other free zone persons and certain listed activities; income from mainland UAE customers is usually non-qualifying unless it falls within a specific carve-out. Because the activity lists change by Cabinet Decision, confirm your revenue streams against the current list rather than a general description.
If you are choosing a structure, our comparison of UAE free zone versus mainland covers the licensing side.
Registration: everyone, with deadlines
Registration on EmaraTax is mandatory for taxable persons, including free zone companies and those expecting to pay nothing. The FTA set registration deadlines by licence issuance month, and late registration carries an administrative penalty. Exempt persons in some categories must also register.
Steps:
- Create or use the entity's EmaraTax account.
- Submit the corporate tax registration with trade licence, articles, Emirates ID and passport of authorised signatories, and proof of authorisation.
- Receive the Tax Registration Number (TRN) for corporate tax, which is separate from any VAT TRN.
- Confirm the entity's tax period, which normally follows the financial year in the licence and articles.
Filing and payment deadlines
| Obligation | Deadline |
|---|---|
| Corporate tax return | Within 9 months of the end of the tax period |
| Payment of tax due | Same deadline as the return |
| Record retention | Generally 7 years from the end of the tax period |
| Transfer pricing disclosure | Filed with the return where thresholds are met |
A financial year ending 31 December 2025 therefore has a return and payment deadline of 30 September 2026. There are no provisional or instalment payments in the standard regime. Master file and local file documentation obligations apply where revenue or group thresholds are met, and related party transactions must be at arm's length regardless of size.
Practical compliance checklist
- Confirm registration on EmaraTax and record the corporate tax TRN.
- Fix your tax period and diarise the nine-month deadline.
- Maintain IFRS-based accounting records; audited statements are required for QFZPs and for some other categories.
- Map every revenue stream if you are in a free zone, and test it against the qualifying income list and the de minimis limit.
- Document related party and connected person transactions.
- Decide deliberately whether Small Business Relief helps or costs you, given the loss carryforward restriction.
- Keep records for at least seven years.
- Track UAE VAT obligations separately; VAT registration and corporate tax registration are different regimes with different thresholds.
Questions about: UAE Corporate Tax 2026: 9% Rate, Exemptions and Filing Rules
6 curated questions answered directly for this topic. Unique to this post.
0% on taxable income up to AED 375,000 and 9% above that. Qualifying free zone persons can access 0% on qualifying income, and large multinational groups may face a separate top-up tax.