UAE Corporate Tax Rates Explained: 0% and 9% With Examples
UAE Corporate Tax has a simple rate structure for most businesses.
The rates
- 0% on taxable income up to AED 375,000
- 9% on taxable income above AED 375,000
Large multinational groups can also be subject to a domestic minimum top-up tax, but that does not affect typical small and medium businesses.
Worked examples
| Taxable income | Tax on first AED 375,000 | Tax on the rest (9%) | Total tax |
|---|---|---|---|
| AED 300,000 | 0 | 0 | AED 0 |
| AED 500,000 | 0 | 9% × 125,000 | AED 11,250 |
| AED 1,000,000 | 0 | 9% × 625,000 | AED 56,250 |
Taxable income is not revenue
Tax is charged on taxable income, which starts from your accounting profit and is then adjusted for items such as non-deductible expenses and exempt income. Good bookkeeping directly reduces errors and tax risk.
Even at 0%, you still file
If your taxable income is below AED 375,000 you may pay no tax, but you must still be registered and file your annual return on time.
Questions about your situation? Message us on WhatsApp or book a consultation. Fixed fees agreed upfront.
General information only, not advice for your specific situation.
