UAE Corporate Tax: What Every Business Needs to Know

The UAE introduced a federal corporate tax effective for financial years starting on or after 1 June 2023. For most businesses, this is new territory — but the framework is straightforward once you understand the basics. ## The Rate 9% on taxable income above AED 375,000. Income below that threshold is taxed at 0%. This keeps the UAE highly competitive globally. ## Who Is Subject to Corporate Tax? All UAE businesses — free zone and mainland — are required to register for corporate tax. However, free zone businesses that meet the 'Qualifying Free Zone Person' criteria continue to benefit from 0% on qualifying income. ## Qualifying Free Zone Person Status To maintain 0% status, a free zone company must: conduct qualifying activities, maintain adequate substance in the UAE, not derive income from mainland UAE, and file a tax return annually. ## Registration Deadline All businesses must register with the Federal Tax Authority. Failure to register carries penalties. Our compliance team handles registration and annual filing. ## What You Should Do Now 1. Register with the FTA (mandatory for all) 2. Determine whether you qualify for 0% free zone treatment 3. Set up proper accounting to support annual filing If you're unsure where you stand, a 30-minute call with our tax team will give you a clear picture.