Complete guide to UAE corporate tax in 2025. Understand the 9% rate, QFZP requirements for 0% free zone tax, registration deadlines, and compliance obligations.
Rates
Small business relief threshold for all UAE companies.
Standard corporate tax rate for mainland and non-qualifying free zone income.
Free zone companies meeting QFZP criteria on qualifying income.
UAE corporate tax applies to business profits only. There is still no personal income tax in the UAE. Salaries, dividends (with conditions), and personal investment income remain tax-free for individuals.
Free Zone Tax
Free zone companies can maintain 0% corporate tax by qualifying as a Qualifying Free Zone Person (QFZP).
Must be a juridical person (company) registered in a UAE Free Zone.
Maintain sufficient employees, assets, and operating expenditure in UAE. Core activities must be in free zone.
Income from transactions with other free zone persons or from qualifying activities listed by Ministry of Finance.
Prepare and maintain audited financial statements annually. Mandatory for all QFZP claims.
Comply with transfer pricing rules and maintain proper documentation for related party transactions.
Must not have elected to be subject to the standard 9% corporate tax regime.
If you fail to meet QFZP conditions, your company loses the 0% rate for the current year and the next 4 years. You can only re-test eligibility in year 6. This makes compliance critical from day one.
Deadlines
New companies must register for corporate tax within 3 months of trade license date.
Corporate tax applies to financial years beginning June 1, 2023 or later.
File annual corporate tax return within 9 months after your financial year ends.
Pay any corporate tax due by the same deadline as your tax return filing.
Exemptions
Penalties
| Violation | Penalty |
|---|---|
| Late registration | AED 10,000 |
| Late filing of tax return | AED 500-1,000/month |
| Late payment of tax | 14% annual interest |
| Incorrect tax return | Up to 50% of tax due |
| Failure to maintain records | AED 10,000-20,000 |
Get Help
Unsure about your UAE corporate tax obligations or QFZP status? Get expert advice tailored to your situation.
Free consultation - Expert advice - Response in 30 minutes
FAQs