I just started a business in Dubai. Which UAE taxes apply to me?
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It depends on your turnover and business type. If you're an individual, Corporate Tax only applies once your business turnover exceeds AED 1 million in a calendar year; if a company, Corporate Tax generally applies regardless of turnover, with profits taxed at 0% up to AED 375,000 and 9% above that.
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The detail
Based on the sources provided, a natural person conducting business in the UAE must register for Corporate Tax only if Turnover from that Business or Business Activity exceeds AED 1 million in a Gregorian calendar year; below that, no Corporate Tax registration is required. Once within scope, Taxable Income is taxed at 0% up to AED 375,000 and 9% above that, with the Tax Period normally being the Gregorian calendar year or the 12-month period used for financial statements.12
What the law says
- A natural person's Corporate Tax registration obligation is triggered only once their UAE Business or Business Activity Turnover exceeds AED 1 million in a Gregorian calendar year (FTA guidance).2 Based on FTA guidance
- Standard Corporate Tax rates are 0% on Taxable Income up to AED 375,000 and 9% above that, for both companies and natural persons within scope (FTA guidance).2 Based on FTA guidance
- A Taxable Person's Tax Period is its Financial Year, being the Gregorian calendar year or the 12-month period for which it prepares financial statements, under Article 57 of the Corporate Tax Law.1
What it depends on
- The AED 1 million threshold applies only to natural persons; companies and other juridical persons must register for Corporate Tax regardless of turnover level (per the sources on small businesses).2 Based on FTA guidance
- This threshold is separate from the AED 3 million revenue threshold used for Small Business Relief.2 Based on FTA guidance
Check before you rely on it
- Confirm whether you are operating as a natural person (sole proprietor) or through a licensed company
- Track your annual business turnover to see if it crosses AED 1 million
- Check if you also need to register for VAT or Excise Tax, which are not covered by the Corporate Tax rules above
Note: The sources provided only cover Corporate Tax thresholds and rates; they do not address VAT or Excise Tax registration rules, so you should check those separately.
Sources (2) — read the official text
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Article 57 – Tax Period
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Article 57 – Tax Period 1. A Taxable Person’s Tax Period is the Financial Year or part thereof for which a Tax Return is required to be filed. 2. For the purposes of this Decree-Law, the Financial Year of a Taxable Person shall be the Gregorian calendar year, or the (12) twelve-month period for which the Taxable Person prepares financial statements.
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Read the article
For more information on the timeline to register for Corporate Tax for other types of Taxable Persons, please refer to the relevant FTA Decision and Public Clarification published on the FTA’s website3. 3 Are there any exceptions to the requirement to register for Corporate Tax for small businesses? A natural person who conducts a Business or Business Activity in the UAE is only required to register for Corporate Tax if the total Turnover from such Business or Business Activities exceeds AED 1 million within a Gregorian calendar year. For more information on the taxation of natural persons under Corporate Tax Law, please refer to the guidance published on the FTA’s website4. *Note: The AED 1 million registration threshold for natural persons is separate from the AED 3 million Revenue threshold for Small Business Relief (see section 6) 4 What is the Corporate Tax rate applicable to a small business? There is no special Corporate Tax rate applicable for a small business. The Taxable Income will be subject to standard Corporate Tax at the following rates: - 0% on the portion of the Taxable Income not exceeding AED 375,000; and - 9% on the portion of the Taxable Income that exceeds AED 375,000. The Corporate Tax rates above also apply when the total Turnover derived by a natural person from its Business or Business Activities in the UAE in a Gregorian calendar year exceeds AED 1 million, starting from Gregorian calendar year 2024. 3 FTA Decision No.3 of 2024 - The Timeline specified for Registration of Taxable Persons for Corporate Tax for the purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments. https://tax.gov.ae/en/legislation.aspx CTP003 Corporate Tax Public Clarification- First Tax Period of a juridical person. https://tax.gov.ae/en/taxes/corporate.tax/corporate.tax.guides.references.aspx 4 Corporate Tax Guide - Taxation of Natural Persons under the Corporate Tax Law. https://tax.gov.ae/en/taxes/corporate.tax/corporate.tax.guides.references.aspx
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Written by AI from the FTA sources above and checked before display. Not tax advice or official FTA information - confirm with a tax adviser before you act. Full disclaimer
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