02 / IN DETAILThe detail that matters.
| Income type | Treatment |
|---|---|
| Profit up to AED 375,000 | 0% |
| Profit above AED 375,000 | 9% |
| Qualifying Free Zone income | 0% |
| Dividends from UAE subsidiaries | Exempt |
| Personal salary & investment | Out of scope |
Nine percent on profit above AED 375,000 still leaves the UAE among the most competitive tax regimes in the world.
03 / FROM THE SOURCESWhat the official documents say.
The UAE introduced a federal Corporate Tax from June 2023. Businesses pay 9% on the portion of taxable profit above AED 375,000, and 0% on profit up to that threshold — so small and early-stage companies often pay little or nothing.
There is still no personal income tax, no capital gains tax for individuals, and no withholding tax on cross-border payments, which keeps the UAE highly competitive for owners and investors.
Free Zone companies can keep a 0% rate on their qualifying income if they meet economic substance requirements and stay within the limit for non-qualifying revenue. Income that does not qualify is taxed at 9%.
Every taxable business must register for Corporate Tax with the Federal Tax Authority, obtain a tax registration number, and file one annual return within nine months of its financial year-end.
Small Business Relief lets businesses with revenue under AED 3 million elect to be treated as having no taxable income, cutting both tax and paperwork during the early years.
The UAE has more than 137 double-tax treaties, which can reduce or remove foreign withholding taxes on dividends, interest and royalties earned abroad.
04 / THE KEY FACTSThe figures, with their sources.
| Fact | Value | Source |
|---|---|---|
| Corporate tax rate on profits above AED 375,000 | 9% | FTA — Federal Decree-Law No. 47 of 2022 |
| Tax rate on profits up to AED 375,000 | 0% | FTA — Small Business Relief |
| Personal income tax rate | 0% | UAE FTA |
| Capital gains tax | 0% | UAE FTA |
| Withholding tax | 0% | UAE FTA |
| Free Zone qualifying income tax rate | 0% | FTA — Free Zone Persons Guide |
| Small Business Relief revenue threshold | AED 3,000,000 | FTA — Small Business Relief Guide |
| Double Tax Treaties in force | 137+ | UAE MoF |
05 / SOURCES & DOWNLOADSKnow what this guide rests on.
Legal basis: 6 primary source documents. Laws change; verify with the issuing authority before acting.
- UAE CT — General Guide (CTGGCT1) Sep 2023
- UAE CT — Free Zone Persons Guide (CTGFZP1) May 2024
- UAE CT — Small Business Relief Guide EN Aug 2023
- UAE CT — Registration of Juridical Persons Guide EN Aug 2023
- UAE CT — Tax Returns Guide (CTGTXR1) Nov 2024
- UAE CT — Determination of Taxable Income (CTGDTI1) Jul 2024