UAE Corporate Tax Registration: 9% Rate, Free Zone Rules & Filing Deadlines
The UAE ended its zero-tax era in 2023. Here's how the 9% corporate tax works for mainland companies, free zones and small businesses.
8 min read · 12 March 2026
The 9% rate and the AED 375,000 threshold
UAE Corporate Tax applies at 0% on taxable income up to AED 375,000 and 9% above that. A large-multinational top-up (15% under Pillar Two) applies to groups with global revenue over EUR 750 million.
Every taxable person must register with the Federal Tax Authority, regardless of profit — including free zone entities.
Free zone qualifying income
A Qualifying Free Zone Person (QFZP) can still enjoy a 0% rate on 'qualifying income' — mainly transactions with other free zone entities and specific qualifying activities. Non-qualifying income is taxed at 9% without any AED 375,000 shelter.
The de minimis rule (non-qualifying income under 5% of total or AED 5m, whichever is lower) is unforgiving; a single mainland invoice can strip QFZP status for the whole year.
Small Business Relief
Businesses with revenue under AED 3 million per tax period can elect Small Business Relief and be treated as having no taxable income (available for tax periods ending on or before 31 December 2026, subject to extension).
This is genuinely valuable for early-stage mainland companies but does not apply to QFZPs or members of large multinational groups.
Registration and filing timeline
The tax period is generally the financial year. Returns must be filed and any tax paid within 9 months of the end of the tax period. Late registration alone attracts an AED 10,000 fixed penalty.