# What is UAE Corporate Tax?

Country: United Arab Emirates

UAE Corporate Tax is the federal tax on business profits introduced by Federal Decree-Law No. 47 of 2022, effective 1 June 2023. It applies a 0% rate on the first AED 375,000 of taxable income and 9% above. Qualifying Free Zone Persons can pay 0% on Qualifying Income. Multinational groups within Pillar Two scope face a 15% Domestic Minimum Top-up Tax from 1 January 2025.

## Current rate (Calendar year by default; companies may elect a non-calendar financial year)

0% up to AED 375,000; 9% above; 15% top-up under DMTT for groups with €750m+ revenue

## Example

A mainland LLC with AED 1,000,000 taxable income pays 0% on the first AED 375,000 and 9% on the remaining AED 625,000 = AED 56,250 tax.

## How UAE Corporate Tax works in United Arab Emirates

Corporate Tax was introduced to align the UAE with global tax standards (BEPS, Pillar Two) while maintaining competitiveness. The headline 9% remains one of the lowest in the world for non-zero jurisdictions.

Filing: Annual CT return due within 9 months of the financial year-end via the FTA's EmaraTax portal. Registration is mandatory once turnover exceeds AED 1m or you incorporate.

Qualifying Free Zone Persons (QFZP) can retain the 0% rate on Qualifying Income (mainly transactions with other Free Zone entities or non-UAE customers in qualifying activities), but lose the 0% benefit if they fail any de minimis test.

Source: https://tax.gov.ae/en/taxes/corporate.tax.aspx

## Related terms

- [QFZP (Qualifying Free Zone Person)](https://accounts-os.com/ae/glossary/qfzp)
- [UAE VAT](https://accounts-os.com/ae/glossary/vat-uae)
- [TRN (Tax Registration Number)](https://accounts-os.com/ae/glossary/trn-uae)
- [Free Zone (UAE)](https://accounts-os.com/ae/glossary/free-zone-uae)