Corporate tax
Corporate tax applies to financial years starting on or after 1 June 2023.
- 0% on taxable income up to AED 375,000, and 9% on taxable income above that
- Qualifying free zone persons can benefit from 0% on qualifying income; their other taxable income is taxed at 9%
- Companies, including free zone companies, must register with the Federal Tax Authority — for new companies, generally within three months of incorporation
- A tax return is filed and the tax paid within nine months of the end of each tax period
- Individuals running a business become subject to corporate tax when their business turnover exceeds AED 1 million in a calendar year
Value Added Tax (VAT)
- A standard rate of 5%, with some supplies taxed at 0% or exempt
- Registration is mandatory when taxable supplies and imports exceed AED 375,000 over the past 12 months, or are expected to within the next 30 days
- Voluntary registration is available above AED 187,500
- An application must be filed within 30 days of becoming required to register
Other points
- There is no personal income tax on salaries
- The withholding tax rate is currently 0%
- Accurate accounting records must be kept, and audited financial statements are required in some cases — for example, for free zone companies relying on the 0% rate
How ETURA helps
We make sure registrations happen on time and coordinate your bookkeeping, VAT and corporate tax filings with licensed accountants and tax agents.
This page provides general information only and is not legal, tax or immigration advice. Requirements are set by the relevant authorities and may change; we confirm the current position for your case at assessment.
Last reviewed: November 2026