Who must register, which rate applies and what records to keep from day one.
The headline rates
The UAE applies federal corporate tax to business profits. Taxable income up to AED 375,000 is taxed at 0%, and income above that threshold at 9%. Large multinational groups within the scope of the global minimum tax rules are subject to separate top-up provisions.
Registration is not optional
Every taxable person must register with the Federal Tax Authority and obtain a tax registration number — including companies that expect to pay nothing. Late registration attracts an administrative penalty, so it is worth doing as soon as the licence is issued.
Free zone companies
A free zone company that meets the conditions to be a Qualifying Free Zone Person can benefit from a 0% rate on qualifying income. The conditions are specific — they cover substance, the nature of the income, transfer pricing and audited accounts — and failing one of them can remove the benefit.
If the 0% rate is part of your business case, have it reviewed before you choose a zone and an activity, not after.
Records to keep from day one
Good records make the first return straightforward.
- Accounts prepared on a recognised accounting standard
- Contracts and invoices supporting income and expenses
- Documentation for related-party transactions
- Bank statements reconciled monthly
This article is general information, not legal, tax or immigration advice. Rules change; please confirm your position with an advisor before acting.
