UAE Corporate Tax 2026: Complete Guide to Rates, Registration and Filing
The UAE introduced a federal Corporate Tax (CT) effective for financial years starting on or after June 1, 2023. At 9%, it remains one of the lowest corporate tax rates in the world — but compliance is mandatory for virtually every business operating in the UAE.
Is Your Business Subject to UAE Corporate Tax?
UAE Corporate Tax applies to:
- UAE-incorporated and resident companies (mainland & free zone)
- Foreign companies with a permanent establishment in UAE
- Individuals conducting business or business activities in UAE earning over AED 1 million per year
Key point: Even if your business earns less than AED 375,000 (the 0% threshold) or qualifies as a Qualifying Free Zone Person (QFZP), you STILL must register and file returns with the FTA. Non-registration carries an AED 10,000 penalty.
Corporate Tax Rates 2024–2026
| Taxable Income | Rate | Notes |
|---|---|---|
| AED 0 – 375,000 | 0% | Small Business Relief available for revenue < AED 3M |
| Above AED 375,000 | 9% | Only the amount above threshold is taxed at 9% |
| Qualifying Free Zone Income | 0% | Must maintain QFZP status annually |
Key Corporate Tax Deadlines
- CT Registration: Must register within 3 months of your first CT-applicable financial year start
- Annual CT Return: Due within 9 months of financial year end (e.g., Dec 31 FY → Sep 30 filing deadline)
- CT Payment: Due on the same date as the return filing
What Expenses Are Deductible?
- Business expenses “wholly and exclusively” incurred for business purposes
- Employee salaries, benefits, and EOSB provisions
- Rent (with valid Ejari) and utility costs
- Depreciation on business assets
- Interest expense (subject to 30% EBITDA cap under thin capitalization rules)
- Donations to approved UAE charitable organizations
What Is Not Deductible?
- Fines and penalties
- Personal expenses of owners/directors
- Dividends paid to shareholders
- Bribes and illegal payments
- 50% of entertainment/entertainment expenses
🏛️ Register & File Your Corporate Tax
Hashmi Business Consultant handles CT registration, return preparation, and ongoing compliance. Learn about our CT services →