Understanding Corporate Tax in UAE
The UAE introduced Corporate Tax under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, applicable to financial years beginning on or after 1 June 2023.
The system remains fully operational in 2026 and forms a key part of the country’s alignment with international tax standards.
Under the current framework:
- Taxable income up to AED 375,000 is taxed at 0%.
- Taxable income above AED 375,000 is generally taxed at 9%.
- Certain large multinational groups may be subject to additional Pillar Two global minimum tax rules.
- Certain reliefs are available if conditions are met
This structure ensures that startups and smaller businesses continue to benefit from a highly competitive tax environment while larger profitable businesses contribute to federal revenues.
What Is the Dubai Corporate Tax Rate in 2026?
One of the most common misconceptions is that Dubai has its own corporate tax system.
In reality, the Dubai corporate tax rate is the same federal rate applicable throughout the United Arab Emirates (UAE):
Taxable Income Corporate Tax Rate
| Taxable Income | Corporate Tax Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
The rate applies to qualifying businesses operating in Dubai mainland as well as many entities operating throughout the Emirates, including Free Zones.
Compared with many global jurisdictions where corporate tax rates exceed 20%, the UAE remains one of the most competitive business destinations internationally.
How to Register for Corporate Tax in UAE
You can watch our comprehensive video that explains this process
The registration process is completed through the Federal Tax Authority’s EmaraTax platform (similar to the VAT registration process).
Step 1: Create or Access Your EmaraTax Account
Create your business profile and connect the account with your UAE Pass, if available.
If UAE Pass is not available, enter the username and password you will use for future access.
Remember to save these for easy access when needed!
Step 2: Prepare Documentation
Generally, businesses need:
- Trade license
- Certificate of incorporation
- Memorandum of Association
- Emirates ID and passport copies of significant shareholders and authorized signatories
- If Emirates IDs are not available yet, registration can still proceed with passports only
- Proof of authorization where applicable
Important to note that a bank account and operations in the Company is not required.
Step 3: Complete Corporate Tax Registration Application
Access the company’s EmaraTax account dashboard using the credentials created in Step 1. Click on “View” to access the Taxable Person Account. Click on “Register” under “Corporate Tax”. Complete the registration process by filling in the required forms and uploading the supporting documents
Step 4: Receive Your TRN
Once the registration application is submitted, it will go into “In Review” status.
The UAE Federal Tax Authority (FTA) will review the application and may ask clarifying questions or request additional information.
Once approved, the FTA issues a Corporate Tax certificate with a Tax Registration Number (TRN). This TRN will be different from the VAT TRN of Company.
A VAT TRN normally ends in 003
A CT TRN ends in 001
Corporate Tax Registration Deadline
The corporate tax registration deadline depends on the type of taxpayer and date of incorporation.
For companies incorporated after 1 March 2024, registration is required within three months of incorporation. The FTA has issued detailed registration timelines through official guidance.
Missing the registration deadline may result in administrative penalties of AED10,000.
Business owners should not assume that inactivity or low profits eliminate registration requirements.
Corporate Tax Late Registration Penalty Waiver
The FTA has introduced a waiver of the Corporate Tax (CT) late registration penalty, which your company may be eligible to benefit from.
Who is eligible?
- Companies that received a CT late registration penalty (AED10,000)
- Companies filing their first CT return
What are the key requirements?
- The first Corporate Tax return must be filed within 7 months from the end of the first financial year
- For most companies (January–December financial year), the deadline will be 31 July
What is the benefit?
- The AED 10,000 penalty will be waived in full if eligibility criteria are met
- If unpaid: the penalty will be removed from your FTA account
- If already paid: the amount will be credited back to your FTA portal
Check your eligibility and take action:
- Eligibility checker: https://tax.gov.ae/en/ct.waiver.check.aspx
- Waiver overview: https://tax.gov.ae/en/about.fta/waiver.of.penalties.aspx
- FTA detailed guide: https://tax.gov.ae/Datafolder/Files/Pdf/2025/CTP006-Waiver-of-Late-Registration-Administrative-Penalty-02-07-2025.pdf
