Taxation in the UAE
The UAE taxes corporate profit at 0% up to AED 375,000 and 9% above it, charges 5% VAT once taxable supplies pass AED 375,000, and levies no income tax on individuals. That summary hides most of what actually decides your bill: whether your free zone company clears the Qualifying Free Zone Person tests, whether you can still elect Small Business Relief — extended to tax periods ending on or before 31 December 2029 by Ministerial Decision 131 of 2026 — and what a late payment costs since 14 April 2026, which is 14% a year under Cabinet Decision 129 of 2025, replacing the old monthly scale.
This section collects our tax guides for companies and founders based in the UAE, written from the legislation rather than around it. Each one states the rule, the figure, the decision it comes from and the date it applied. You will find the registration deadlines and the EmaraTax process, the thresholds that trigger VAT, the 0% free zone regime with its de minimis limit of 5% of revenue or AED 5 million, whichever is lower, and the France-UAE questions a French-speaking founder cannot avoid.
If you are arriving from a European tax system, start with residency. The 183-day and 90-day tests under Cabinet Decision 85 of 2022 decide which country gets to tax you, and everything else follows from that answer. If you have not incorporated yet, the choice of jurisdiction is made in Business Setup, because it is the free zone decision that sets your tax position, not the reverse.
All our guides (5)
Frequently asked questions
Does my free zone company really pay 0% corporate tax?
Only if it qualifies. A Qualifying Free Zone Person pays 0% on qualifying income, but non-qualifying revenue must stay within the de minimis limit — 5% of total revenue or AED 5 million, whichever is lower (Cabinet Decision 100 of 2023). Above that, the 9% rate applies to all of its taxable income, not just the excess.
When does my company have to register for corporate tax?
Within the deadline set by the Federal Tax Authority for your category of person; missing it is a flat AED 10,000 administrative penalty. Registration is done in EmaraTax and is separate from VAT registration.
Can I still use Small Business Relief?
Yes. Ministerial Decision 131 of 2026 extended it to tax periods ending on or before 31 December 2029, keeping the AED 3,000,000 revenue threshold. It is an election, made in the return, and it is not available to a Qualifying Free Zone Person.
What does paying tax late cost now?
Since 14 April 2026, unpaid tax accrues interest at 14% a year, charged monthly for each month or part of a month, under Cabinet Decision 129 of 2025. It replaced the old 2% + 4%-per-month scale for corporate tax, VAT and excise. Every page on this site that still quotes the old scale is being corrected.