Glossary · Corporate Tax 9%
What Is Corporate Tax 9% in the UAE
The UAE corporate tax is 9% on taxable profit above AED 375,000, applied to companies in free zones and on the mainland alike. Profit below the threshold is taxed at 0%.
Why it matters
Why it matters when opening a company
Both free-zone and mainland companies pay the same 9% — the jurisdiction choice does not remove corporate tax.
Qualifying Free Zone Persons can keep a 0% rate on qualifying income, subject to substance and compliance conditions.
Process
How it works
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Track taxable profit per financial year
Step 1 -
Register with the Federal Tax Authority if in scope
Step 2 -
File the annual corporate tax return
Step 3
Mini-FAQ
Common questions
Do free-zone companies pay corporate tax?
Yes — 9% above AED 375,000 of profit; qualifying income of Qualifying Free Zone Persons may stay at 0% under conditions.
When did the corporate tax start?
For financial years starting on or after 1 June 2023.