Tax & Compliance
Corporate Tax
A 9% federal tax on business profits exceeding AED 375,000, effective from June 2023.
The UAE introduced a federal Corporate Tax (CT) effective for financial years starting on or after June 1, 2023.
The tax rates are: 0% on taxable income up to AED 375,000, and 9% on taxable income exceeding AED 375,000.
Free zone companies that meet Qualifying Free Zone Person (QFZP) conditions can enjoy a 0% rate on qualifying income.
Related Terms
VAT (Value Added Tax)
A 5% tax applied to most goods and services in the UAE, with mandatory registration for businesses exceeding AED 375,000 in annual taxable supplies.
Free Zone
A designated area in the UAE where businesses enjoy 100% foreign ownership, zero income tax, and full profit repatriation.