UAE Corporate Tax: Complete 2026 Guide for Businesses

UAE Corporate Tax was introduced under Federal Decree-Law No. 47 of 2022 and applies to financial years beginning on or after 1 June 2023. By 2026 the regime is fully operational, which means the Federal Tax Authority is actively running audits, issuing assessments and applying penalties. Every taxable person is expected to be registered, to file an annual return and to pay tax on profits above the threshold. This guide covers the rates, who is in scope, the key reliefs and how to stay compliant.

Corporate Tax rates in 2026

The headline structure is deliberately competitive. Tax is charged on net accounting profit, adjusted for tax purposes, with a generous nil-rate band designed to protect small businesses and start-ups.

• 0% on taxable income up to AED 375,000.
• 9% on taxable income above AED 375,000.
• 0% on the Qualifying Income of a Qualifying Free Zone Person that meets all the conditions.
• A 15% Domestic Minimum Top-up Tax applies only to large multinational groups with consolidated revenue of EUR 750 million or more, for financial years starting on or after 1 January 2025.

Who is subject to Corporate Tax

The regime reaches most commercial activity carried on in the UAE, whether through a mainland licence or a free zone licence.

• UAE-incorporated companies, both mainland and free zone.
• Foreign legal entities that are effectively managed and controlled in the UAE.
• Foreign companies with a permanent establishment in the UAE.
• Branches of foreign companies operating in the UAE.
• Natural persons conducting business activities with annual turnover above AED 1 million.

Small Business Relief

Small Business Relief lets eligible resident businesses elect to be treated as having no taxable income for a tax period, where revenue does not exceed AED 3,000,000 in the current and all previous relevant tax periods. While the relief applies it removes the burden of calculating taxable income, though the business must still register and file a return. It is a temporary support measure, so confirm it is still available for your year-end before relying on it.

Free zone businesses and QFZP status

Free zone companies can still benefit from a 0% rate, but only on Qualifying Income, and only if they keep their Qualifying Free Zone Person status. Non-qualifying income is taxed at the standard 9% rate, and breaching the de minimis threshold can disqualify the entire entity, so the position needs careful management.

• Maintain adequate substance in the UAE, including offices, staff and decision-making.
• Earn income from Qualifying Activities and respect the de minimis limit on non-qualifying income.
• Comply with transfer pricing rules and the arm-length principle.
• Prepare and maintain audited financial statements.
• Not have elected to be taxed under the standard 9% regime.

Registration deadlines and penalties

All taxable persons must register for Corporate Tax with the FTA and obtain a Tax Registration Number, regardless of whether tax is ultimately payable. The initial registration deadlines tied to trade licence issue dates have now passed, so newly incorporated companies should register within the window set by the FTA after incorporation. Late registration triggers an automatic AED 10,000 administrative penalty, so this is the first box to tick.

Filing and payment deadlines

Corporate Tax operates on a self-assessment basis with a single annual return. The return must be filed, and any tax paid, within nine months of the end of the relevant financial year. For a company with a 31 December year-end, that means filing by 30 September of the following year. There is only one filing per period, so accurate, audit-ready books throughout the year are what make the deadline manageable.

How JPA Group can help

As an FTA-approved tax agent established in 2001, JPA Group handles Corporate Tax registration, taxable income calculations, Small Business Relief and QFZP assessments, and the annual return itself. Speak to our team on 0542242595 or email info@jpaa.ae to make sure your 2026 filing is accurate and on time.