UAE Corporate Tax Guide 2026: Everything You Need to Know

Published: March 2026 | Reading time: 7 minutes

What is UAE Corporate Tax?

The UAE introduced Corporate Tax (CT) effective for financial years starting on or after June 1, 2023. It applies to all businesses operating in the UAE, with a standard rate of 9% on taxable income exceeding AED 375,000.

Who Needs to Register for Corporate Tax?

• All UAE companies (Mainland and Free Zone)
• Individuals conducting business activities under a trade license
• Free zone entities (with potential 0% rate for qualifying income)
• Foreign entities with a permanent establishment in UAE

Corporate Tax Rates 2026

• 0%: Taxable income up to AED 375,000
• 9%: Taxable income exceeding AED 375,000
• 0% (Free Zones): Qualifying income from transactions with free zone parties

Key Deadlines for 2026

• Registration: Within 3 months of incorporation or reaching threshold
• Return Filing: Within 9 months after financial year end
• Payment: Same as return filing deadline

Documents Required for Corporate Tax Registration

• Trade license copy
• Passport copies of shareholders
• Emirates ID copies
• Financial statements (if available)
• Contact information

Step-by-Step Corporate Tax Registration

Step 1: Access FTA Portal

Log in to your FTA account (same as VAT account) at tax.gov.ae

Step 2: Complete Registration Form

Provide business details, financial year end date, and estimated taxable income.

Step 3: Submit Documents

Upload required documents in PDF format.

Step 4: Receive Tax Registration Number

You'll receive your TRN within 5-10 business days.

Transfer Pricing Requirements

Businesses must maintain transfer pricing documentation if they transact with related parties:

• Master File: For groups with revenue over AED 200 million
• Local File: For transactions exceeding certain thresholds
• Disclosure Form: Required with tax return for all related party transactions

Free Zone Corporate Tax Rules

Qualifying Free Zone Persons can benefit from 0% CT on qualifying income if they:

• Maintain adequate substance in UAE
• Derive qualifying income
• Comply with transfer pricing rules
• Elect to be subject to 9% on non-qualifying income

Penalties for Non-Compliance

• Late registration: AED 10,000
• Late filing: AED 500 per month (up to AED 20,000)
• Late payment: 14% annual interest on unpaid tax
• Incorrect returns: Up to AED 50,000

How AcontPro Can Help

Our corporate tax experts provide:

• Corporate tax registration
• Return filing and compliance
• Transfer pricing documentation
• Tax health checks
• FTA audit support

Frequently Asked Questions

Do free zone companies pay 9% tax?

Qualifying free zone companies pay 0% on qualifying income and 9% on non-qualifying income.

What is the threshold for corporate tax?

Income up to AED 375,000 is taxed at 0%. Income above this is taxed at 9%.

When is the first corporate tax return due?

Within 9 months after your financial year end. For example, if your year ends Dec 31, return is due Sep 30.

Need Corporate Tax Assistance?

Contact AcontPro today for expert corporate tax registration and compliance services.

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