Corporate tax is now a fact of doing business in the UAE. The rules are business-friendly by global standards, but they still require registration, record-keeping and timely filing. Here is what you need to know.
The headline rate
UAE corporate tax applies at 9% on taxable profits above AED 375,000, with a 0% rate on profits up to that threshold. This keeps small businesses lightly taxed while remaining competitive internationally.
Who must register
Most businesses must register for corporate tax regardless of whether they expect to pay it — including many free zone companies. Registration is a compliance obligation, not just a payment trigger.
Free zone treatment
Qualifying free zone persons may enjoy a 0% rate on qualifying income, but only if they meet substance, audit and documentation requirements. Getting this wrong can cost the benefit entirely.
Small Business Relief
Eligible small businesses can elect for Small Business Relief, simplifying compliance and reducing the tax burden during the early years. We assess whether you qualify.
What to do now
- Register within the applicable deadline for your licence
- Keep clean, IFRS-aligned books
- Assess free zone qualifying income eligibility
- File accurately and on time
The Catalyst handles registration, bookkeeping and filing so your corporate tax position is compliant and optimised from day one.
