The UAE Corporate Tax regime took effect for financial years starting on or after June 1, 2023. This milestone decision aligns the UAE with the world’s tax rules without discouraging investors from the country.
Under this regime, taxable entities with a taxable income of more than AED 375,000 are liable to pay 9% tax on the profits over and above such amount. The rate remains one of the most competitive in the world and will help maintain the UAE as a center of startups, SMEs, and multinational companies.
✅ Who has to Pay Corporate Tax in the UAE?
The UAE Corporate Tax has to be paid by most companies that are legally operating within the UAE, under the new regime. Here’s a simple breakdown:
Who’s in The Dock?
Mainland Companies: Any company registered in the UAE, such as LLCs, must pay corporate tax if their annual taxable income exceeds AED 375,000.
Free Zone Companies: Most Free Zone companies will qualify for special relief if they satisfy certain conditions. If not, they will be registered and taxed like mainland companies.
Foreign Businesses: If a foreign business has a Permanent Establishment (PE) in the UAE — a foreign business with a UAE branch or local office, say — it will have to pay Corporate Tax on profits made in the UAE.
Freelancers & Solo Business Owners: If your taxable income is more than AED 375,000, you also need to pay tax.
✅ Who’s Not Required?
Not all individuals are required to pay tax. The UAE government has made some significant exceptions to ensure that the business climate is appealing:
Government Bodies & Government Companies: Such as federal and emirate-owned entities like DEWA.
Extractive Enterprises: Oil, gas, or other natural resource drilling companies (these are taxed at the emirate level, rather).
Qualifying Public Benefit Organizations: Charities, non-profit organizations, and public benefit bodies in specific circumstances.
Qualifying Investment Funds: Investment funds meeting certain requirements.
If you’re unsure whether your enterprise is exempt, it’s always advisable to consult a tax advisor prior to assuming that you can avoid registration.
The Standard Corporate Tax Rate
The UAE stays competitive:
The standard Corporate Tax rate is applicable at 9% on earnings in excess of AED 375,000.
The UAE government taxes earnings up to AED 375,000 at 0% to encourage start-ups and small businesses.
How to do Corporate Tax Registration:
Corporate Tax Documents Required for Registration
Once you know that your business should register, you will need to prepare certain documents for easy registration:
- Valid Trade License
- Emirates ID and passport photocopies of owners/shareholders
- Memorandum & Articles of Association (MOA & AOA)
- Recent financial accounts (audited where necessary)
- Business bank details
It is advisable to prepare your documents in advance to avoid wasting time and causing delays.
- Corporate Tax Registration in the UAE
- Corporate Tax is managed via the Federal Tax Authority (FTA).
Find the step-by-step below:
1.Open an FTA Account:
Proceed to the Federal Tax Authority website and establish your business account.
2. Complete the Application:
Provide your business details, upload financials and your trade license.
3. Upload Supporting Documents:
Upload your MOA/AOA, Emirates ID, and other necessary documents.
4. Submit and Wait for Approval:
The FTA will process your application upon submission and award a Tax Registration Number (TRN) on approval.
Your TRN is necessary for returns and compliance.
Filing Your Corporate Tax Returns
After registering, your job is not over. UAE companies are required to submit annual Corporate Tax returns on time to avert fines and penalties.
- Maintain accurate books of accounts and current financial statements.
- Compute your tax payable — don’t forget that the 9% rate only applies to profits above AED 375,000.
- File your return via the FTA portal on or before the deadline.
- Pay any tax arrears on time.
At Taxtube, we believe it must be easy to meet complicated tax obligations for business owners and entrepreneurs. When you join an accounting or compliance plan, we provide free tax registration — no additional fees.
This is how we assist you:
- Register your business for tax without hassle
- Walk you through exemptions and deductions to keep your liability low
- Stay on top of annual filings and documents
- Stay current with changes in new tax regulations and deadlines
Why Staying Compliant Matters
Ignoring corporate tax obligations invites hefty penalties, freezes transactions, and damages your reputation. But when you choose the right tax partner, you’ll never fall behind.
Taxtube handles your registration, filing, and compliance—so you can focus fully on running and growing your business.
Ready to Register? Let’s Get Started!
Whether you are an existing business, a freelancer, or a startup, the UAE Corporate Tax regime affects you. Stay informed and stay compliant and save your business and profit from the pro-business culture in the UAE.
Taxtube — Your trusted partner for Corporate Tax and business setup in the UAE!
02 September 2025 