Corporate Tax in the UAE: Rates, Exemptions and Filing Rules

Chaitra Seetharam | Last updated: 10 June 2025

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The UAE has introduced a corporate tax system effective from the first day of the financial year on or after June 1, 2023. This tax applies to most businesses and individuals conducting commercial activities in the UAE, with specific exemptions for government entities, qualifying non-profits, and certain investment funds. The system features a 0% tax rate on taxable income up to AED 375,000 for resident businesses and qualifying free zone persons, and a 9% rate on income exceeding this threshold. Compliance involves mandatory registration, annual filing within nine months of the tax period end, and adherence to IFRS standards for financial statements.

Corporate tax is a direct tax imposed on the net income or profits of corporations and similar entities derived from their business activities. The regulations governing corporate tax are outlined in Federal Decree-Law No. 60 of 2023, which amends certain provisions of Federal Decree-Law No. 47 of 2

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About the Author

Chaitra Seetharam

Finance Professional

I write on Income Tax, TDS, ITR filing, banking rules, investment schemes, and financial law updates in India. My articles simplify complex tax provisions, compliance requirements, and policy changes to help taxpayers, professionals, senior citizens, and businesses stay informed and financially aware.

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