UAE Corporate Tax Rate 9% – What Businesses Need to Know in 2026

📅 Published: June 2026 | Reading time: 7 minutes

What is the UAE Corporate Tax Rate in 2026?

The UAE corporate tax rate is 9% on taxable income exceeding AED 375,000. This applies to all businesses operating in the UAE, with special rules for Free Zone companies that may qualify for 0% tax on qualifying income.

Corporate Tax Rate Breakdown

Taxable Income	Tax Rate
Up to AED 375,000	0%
Above AED 375,000	9%
Large MNEs (global revenue €750M+)	15% (DMTT)

UAE Corporate Tax Threshold AED 375,000 – What It Means

The AED 375,000 threshold means your business pays 0% corporate tax on the first AED 375,000 of taxable income. Any amount above this is taxed at 9%.

For example, if your business has taxable income of AED 500,000:

• First AED 375,000 → 0% tax = AED 0
• Remaining AED 125,000 → 9% tax = AED 11,250
• Total corporate tax payable: AED 11,250

Free Zone Companies – Special Rules

Free Zone companies may qualify for 0% corporate tax on qualifying income if they:

• Maintain adequate substance in the UAE
• Derive qualifying income
• Comply with transfer pricing rules
• Elect to be subject to corporate tax

Non-qualifying income is taxed at the standard 9% rate.

UAE Company Tax Rate – Who Needs to Register

All businesses with a trade license must register for corporate tax, regardless of profit or turnover. Even if you earn below the AED 375,000 threshold (and pay 0% tax), registration is mandatory. Failure to register can result in penalties up to AED 50,000.

Corporate Tax Registration Deadlines

• New businesses: Register within 3 months of receiving your trade license
• Existing businesses: If you haven't registered yet, do it immediately (late penalties apply)
• Tax return filing: Within 9 months after your financial year end

Corporate Tax Penalties for Late Registration

• AED 10,000 for late registration
• AED 500 per month for late return filing (up to AED 20,000)
• 14% annual interest on unpaid tax

How AcontPro Helps Your Business

• ✅ Complete corporate tax registration with FTA
• ✅ Tax return filing and compliance
• ✅ Free Zone qualifying income assessment
• ✅ Transfer pricing documentation
• ✅ Affordable fixed fees – no hidden charges

Internal Resources to Help You

• UAE Corporate Tax Services – AcontPro
• Corporate tax for small businesses – complete guide
• Small Business Relief for UAE companies
• Free consultation with our tax experts

Frequently Asked Questions

What is the corporate tax rate in UAE 2026?

The UAE corporate tax rate is 9% on taxable income exceeding AED 375,000. The first AED 375,000 is taxed at 0%.

Do Free Zone companies pay 9% corporate tax?

Qualifying Free Zone companies pay 0% on qualifying income and 9% on non-qualifying income. Maintaining adequate substance is essential.

What is the AED 375,000 threshold?

It's the amount of taxable income that is taxed at 0%. Any income above AED 375,000 is taxed at 9%.

Is corporate tax registration free?

Yes, FTA registration is free. AcontPro charges a fixed professional fee starting from AED 2,500 for complete registration assistance.

What happens if I don't register for corporate tax?

You face penalties up to AED 50,000, potential legal action from the FTA, and difficulty renewing your trade license.