Calculate UAE Corporate Tax for 2026. Covers standard businesses, Free Zone companies, Small Business Relief, and all key exemptions.
UAE Corporate Tax — Key Facts 2026
The UAE introduced Corporate Tax (CT) effective June 2023. The standard rate is 9% on taxable income exceeding AED 375,000. Income up to AED 375,000 is taxed at 0%.
Small Business Relief: Businesses with revenue of AED 3 million or less can elect for 0% CT for tax periods up to 31 December 2026.
Free Zone businesses: Qualifying Free Zone Persons (QFZP) pay 0% on qualifying income and 9% on non-qualifying (domestic) income, provided they meet the substance requirements.
Exempt income: Dividends and capital gains from UAE subsidiaries, foreign PE income (with conditions), and income from natural resource extraction are generally exempt.
Frequently Asked Questions
What is the UAE Corporate Tax rate?+
The UAE CT rate is 0% on taxable income up to AED 375,000 and 9% on income above AED 375,000. A qualifying Multinational Enterprise (MNE) may be subject to a 15% top-up tax under Pillar Two rules if their effective tax rate is below 15%.
Do Free Zone companies pay UAE Corporate Tax?+
Free Zone businesses that qualify as Qualifying Free Zone Persons (QFZP) pay 0% on qualifying income (foreign income, transactions with other Free Zone entities). Non-qualifying income (sales to UAE mainland customers) is taxed at 9%.
What is Small Business Relief for UAE CT?+
Businesses with revenue of AED 3 million or less in a tax period can elect for Small Business Relief, treating their taxable income as zero (0% CT). This relief is available for tax periods ending on or before 31 December 2026.
When did UAE Corporate Tax start?+
UAE Corporate Tax came into effect for financial years starting on or after 1 June 2023. Most businesses with a calendar year financial period had their first CT tax period starting 1 January 2024.