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UAE corporate tax, in one page

Last reviewed 29 Jun 2026 · maintained by Scooped

Who pays, the headline rate, and what to do — the plain-language overview, with the FTA as your source of truth.

What it is

The UAE levies a federal Corporate Tax on business profits, administered by the Federal Tax Authority (FTA). A headline rate of 9% applies to taxable income above a threshold (AED 375,000), with 0% at or below it — as published by the FTA. Confirm the current rate, threshold, and your own start date with the FTA.

Who it affects

Most UAE businesses and commercial activities fall within scope, including many free-zone entities (which may qualify for specific treatment on 'qualifying income'). Whether your entity qualifies, and on what income, is fact-specific — check the FTA guidance for your situation.

What to do

Register with the FTA, keep proper accounting records, and file within your tax period's deadlines. Because registration windows and penalties change, verify the current dates directly with the FTA rather than relying on any summary.

Quick answers

What is the headline corporate tax rate?

9% on taxable income above AED 375,000, and 0% at or below it, as published by the FTA — confirm the current figures with the FTA.

Do free-zone companies pay it?

Many are in scope but some 'qualifying' free-zone income may be treated differently. It is fact-specific — check the FTA guidance.

Sources

Overview, not legal advice. This is a plain-language summary, not legal advice. For your specific situation, consult a UAE-qualified professional and the original source. Specifics (rates, deadlines, fees) change — confirm against the named authority.

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