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VAT & Tax

UAE Corporate Tax Guide for SMEs

Last verified: 2026-08-24

15 min read
Last updated: August 2026

Table of Contents

Introduction to Corporate Tax in UAE

UAE Corporate Tax applies to financial years starting on or after 1 June 2023. It is a federal tax on the profits of UAE businesses.

Key Point: The rate is 9% on taxable profits above AED 375,000. Profits up to AED 375,000 are taxed at 0%. Businesses with revenue of AED 3,000,000 or less can elect Small Business Relief.

Who Needs to Pay Corporate Tax

Taxable Entities

  • UAE mainland companies (LLC, sole proprietorship, branch, etc.)
  • Free zone companies (unless meeting qualifying criteria)
  • Foreign companies with permanent establishment in UAE

Exempt Entities

  • Government entities and wholly government-owned companies
  • Qualifying free zone persons (subject to conditions)
  • Natural persons earning business income below registration threshold

Registration Process

You register for Corporate Tax through the Federal Tax Authority portal. The FTA sets your registration deadline, and it is not tied to the date your first return falls due.

Registration Facts

  • Register on the Federal Tax Authority portal at tax.gov.ae
  • Your deadline is set by the FTA and depends on your licence and incorporation date. Check it rather than assume it.
  • Missing the registration deadline costs AED 10,000. It is charged once.

Tax Rates and Exemptions

Standard Rate Structure

Taxable income up to AED 375,0000%
Taxable income above AED 375,0009%
Small Business Relief (elective): revenue up to AED 3,000,000No tax payable

Filing Requirements

Your return is due within 9 months of the end of your financial year. The tax is payable on the same date. The return is built from your financial statements, so the bookkeeping has to be closed before that 9-month date, not on it.

Deadlines and Penalties

  • Return filing: within 9 months of financial year end
  • Tax payment: due on the filing date
  • Late registration: AED 10,000, charged once
  • Late filing: AED 500 per month for the first 12 months, then AED 1,000 per month
  • Unpaid tax: 14% annual interest
  • Source: Federal Tax Authority, tax.gov.ae

Corporate Tax, Handled

Ratio handles Corporate Tax registration, bookkeeping and return filing for UAE businesses. Your return goes in inside the 9-month window, with the working papers behind every figure.

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