UAE Corporate Tax is charged on taxable profit, not on revenue. Part of each year’s profit is taxed at 0%; the rest at the standard rate. The key facts below come from the law itself.
Key facts from the law
Taxable Income up to the threshold set by Cabinet decision is taxed at 0%, and above it at 9%Corporate Tax Law, Art. 3(1)
The portion of Taxable Income not exceeding AED 375,000 is taxed at 0% in the Tax PeriodCabinet Decision 116/2022, Art. 2(1)
Taxable Income above AED 375,000 is taxed at 9%Cabinet Decision 116/2022, Art. 3
The AED 375,000 band is not pro-rated when the Tax Period is longer or shorter than 12 monthsFTA First Tax Period guide, p. 13
Each point is checked against the text of the law or FTA guide held by FinTaxIQ - TI.
0% on taxable income up to AED 375,000, and 9% on the amount above that.
Article 3 of Federal Decree-Law No. 47 of 2022 sets Corporate Tax at 0% on Taxable Income up to a Cabinet-specified amount and 9% above it.
FTA guidance confirms the current threshold is AED 375,000, with 0% below and 9% above that figure for both juridical and natural persons meeting the registration criteria. Based on FTA guidance
Yes - the first slice of your taxable profit is taxed at 0%, and only the amount above a threshold set by the Cabinet is taxed at 9%. The exact AED threshold isn't in the sources provided, so check the relevant Cabinet Decision for the current figure.
Article 3(1) imposes 0% on taxable income up to a threshold set by Cabinet Decision, and 9% on taxable income exceeding that threshold.
A Qualifying Free Zone Person instead pays 0% on its Qualifying Income and 9% on any other Taxable Income, under Article 3(2).
Corporate Tax is charged on your profit, not your total sales revenue. Revenue is just used as a threshold test for certain reliefs, not as the tax base itself.
Corporate Tax is the tax imposed on juridical persons and Business income, and Taxable Income is the income that is subject to Corporate Tax.
FTA guidance confirms the accounting net profit or loss from the financial statements is the starting point for determining Taxable Income, distinct from Revenue. Based on FTA guidance
Revenue is defined as the gross amount of income derived during a Tax Period and is different from profit, which is Revenue less expenditure.
Corporate Tax applies to UAE companies, individuals running a business here earning over AED 1 million a year (other than from salary, personal investments or property investment), and foreign entities with a taxable presence in the UAE. If any of these apply to you, you must register for Corporate Tax.
Corporate Tax registration is required for UAE companies and other juridical persons incorporated or effectively managed and controlled in the UAE, non-resident juridical persons with a Permanent Establishment or immovable property nexus, and Free Zone juridical persons, per FTA guidance on registration of juridical persons. Based on FTA guidance
A natural person falls within Corporate Tax scope, and must register, if resident, or a non-resident with a UAE Permanent Establishment, or carrying on a Business or Business Activity with Turnover over AED 1 million that is not wage, personal investment or real estate investment income, per FTA guidance on registration of natural persons. Based on FTA guidance
UAE Corporate Tax applies from 1 June 2023 - specifically, from the start of a business's first financial year beginning on or after that date.
FTA Decision No. 7 of 2023, which implements exemption provisions under the Corporate Tax Law, states it is effective from 1 June 2023.
FTA guidance confirms that a person's Corporate Tax exposure begins from 1 June 2023 (or the start of their first Tax Period beginning on or after that date), even if their activity in the UAE started earlier. Based on FTA guidance
It is the UAE's own top-up tax on large multinational groups, making the UAE collect any top-up on profits earned here rather than letting another country collect it. It applies from financial years starting on or after 1 January 2025.
The DMTT, if consistent with the GloBE Rules and not rule-related, qualifies as a QDMTT and is creditable against the GloBE top-up for that jurisdiction, preserving the primary domestic taxing right (FTA guidance). Based on FTA guidance
Cabinet Decision No 142 of 2024, Article 2, charges the Top-up Tax on UAE Constituent Entities, Joint Ventures/JV Subsidiaries and UAE Reverse Hybrid Entities, with an option to appoint a Domestic Designated Filing Entity to pay on behalf of the group.
Guidance only, not tax advice. Answers were drafted by FinTaxIQ - TI from the FTA’s published law and last updated on 11 October 2026; rely on the official text and a registered tax agent before you file.