The Basics of Corporate Tax in the UAE
Corporate tax in the UAE was introduced under Federal Decree-Law No. 47 of 2022. It applies to the taxable income of both resident and certain non-resident entities.
The tax is administered by the Federal Tax Authority (FTA). Its structure includes:
- 0% tax on taxable profits up to AED 375,000.
- 9% tax on taxable profits above AED 375,000.
The UAE’s corporate tax regime applies to:
- Mainland companies.
- Free zone entities.
- Foreign legal entities with a Permanent Establishment (PE) in the UAE.
- Natural persons (freelancers or sole proprietors), if annual business income exceeds AED 1 million.