Ultimate UAE Corporate Tax Guide 2026 | Just Move

The UAE has successfully transitioned from a tax-free landscape into a mature, regulated business environment. For entrepreneurs, SMEs, and investors, staying compliant is no longer optional—it is a strategic necessity for long-term growth. This corporate tax guide uae is designed to demystify the latest regulations, navigating the shift from the traditional model to a modern tax framework.

As governed by Federal Decree-Law No. 60 of 2023, UAE corporate tax applies across all emirates, ensuring a unified standard for business operations. Note that UAE Corporate Tax will be effective from the beginning of the first financial year that starts on or after June 1, 2023. Whether you are accessing government portals via uaepass or need to contact an expert for a tax returns guide, understanding these rules is vital for every uae corporate income tax payer.

In this guide, you will discover how to leverage Small Business Relief, manage your company tax obligations, and prepare for the 2026 digital compliance milestones. Success begins with understanding exactly how these profit-based rules affect your bottom line.

What is UAE Corporate Tax?

Corporate tax (CT) is a direct tax levied on the net income or profit of corporations and other entities from their business. As detailed in this corporate tax guide uae, the system serves as a transparent mechanism for reinvesting in national infrastructure and essential digital services.

Understanding the UAE Corporate Tax Framework

The Corporate Tax Law is Federal Decree Law No. 47 of 2022 on the Taxation of Corporations and Businesses. It is defined as the tax imposed by the Corporate Tax Law on juridical persons and Business income. This framework specifically targets commercial activities and entity-level earnings rather than personal wages.

For example, owner salaries are considered deductible business expenses if paid at fair market value. To manage your compliance and ensure accurate tax records, you can contact our experts who help monitor official notifications and utilize uaepass for secure filings. Our comprehensive accounting solutions cover corporate tax, bookkeeping, and financial reporting to keep your company fully compliant. A crucial step for any new business is also to understand how to open a bank account in Dubai to manage these finances effectively.

Navigating these legal definitions is essential before exploring the specific rates that will apply to your annual revenue.

Corporate Tax Rates and Thresholds

The corporate tax uae system is designed to be progressive and SME-friendly. This corporate tax guide uae clarifies that businesses are only taxed on net profit, not total revenue. By keeping the first AED 375,000 of profit tax-free, the government ensures that company tax burdens remain low for startups. While corporate tax is a new consideration, entrepreneurs should also factor in the overall Dubai company setup cost when planning their business.

UAE Corporate Tax Guide: Rates and Thresholds

The UAE Corporate Tax rate is 0% for taxable income up to AED 375,000 and 9% for taxable income above AED 375,000. The standard UAE corporate tax rate is 9% for taxable income exceeding AED 375,000, while a 0% rate applies for taxable income up to this threshold.

When calculating your uae corporate income tax, only the portion above the baseline is subject to the levy. The Corporate Income Tax (CIT) payable is calculated by applying a 9% rate on taxable income exceeding AED 375,000. For seamless navigation of these new regulations and to optimize your business finances, explore our expert accounting services.

Consider a scenario where your business generates a net profit of AED 500,000:

• Exempt Profit: First AED 375,000 (Taxed at 0%)
• Taxable Portion: AED 125,000 (Amount above threshold)
• Final Calculation: AED 125,000 x 9% equals AED 11,250.

Owners can manage registration easily using their uaepass for secure access to the FTA's selfcare portal. While these rates are straightforward, specific provisions often found in a tax returns guide can benefit eligible small enterprises.

Exemptions and Free Zone Treatment

Certain sectors operate outside the scope of the federal corporate tax guide uae framework. Specifically, businesses engaged in natural resource extraction are exempt from federal CT as they remain subject to current Emirate-level taxation. This ensures that major industrial players follow localized fiscal regulations.

Free Zone Rules in the UAE Corporate Tax Guide

The Free Zone regime remains a significant advantage for global investors under the new law. Qualifying Free Zone Persons are subject to a 0% rate on Qualifying Income and a 9% rate on non-Qualifying Income. Maintaining these benefits requires entities to meet specific economic substance standards.

Specific categories of revenue are also designated as exempt income: Dividends: Income received from UAE juridical persons is generally not taxed. Participations: Dividends from foreign entities with a participating interest (≥5% or >AED 4 million held ≥12 months) are exempt. Capital Gains: Income or gains derived from these specific participating interests are also protected.

Business owners can verify their registration status through the uaepass system or get in touch via our contact form. Mastering these distinctions helps startups optimize their company tax position while ensuring full legal compliance. Successfully navigating these exemptions is only the first step in managing your total fiscal responsibilities.

Calculating Your Taxable Income

Understanding how to calculate your liability is central to any corporate tax guide uae. Taxable income is calculated based on standalone Financial Statements prepared in accordance with IFRS or IFRS for SMEs, with adjustments for non-deductible expenses, exempt income, reliefs, and tax losses. This ensures a standardized approach for all businesses across the emirates.

To assist businesses, the UAE Federal Tax Authority (FTA) has released a Corporate Income Tax (CIT) Guide (CTGDTI1) on the calculation of taxable income for CIT purposes. This document ensures your company tax filings are compliant with 2026 regulations and follow recognized international standards.

Adjustments in the UAE Corporate Tax Guide

• Exempt Income: Dividends and capital gains earned by a UAE business from qualifying shareholdings are exempt from CT.
• Non-Deductible Expenses: Certain costs, such as owner salaries above fair market value, must be added back to the net profit.
• Reliefs: Small Business Relief (SBR) remains an option for firms with revenue under 3,000,000 AED until the end of 2026.

You can log in via uaepass to access digital services or contact Just Move for professional support. Determining your taxable base is the final step before preparing your formal submission.

2025-2026 Regulatory Updates

To maintain compliance, businesses must monitor the latest Federal Tax Authority (FTA) updates. A comprehensive corporate tax guide uae must reflect the significant clarifications released in late 2025 to ensure an accurate tax returns guide for the upcoming filing cycle.

Recent Updates to the UAE Corporate Tax Guide

The FTA has provided granular details on complex structures to prevent company tax errors. Public Clarification CTP007, detailing financial statements and audit requirements for a Tax Group, was issued on August 28, 2025. This ensures parent companies understand consolidated reporting obligations.

For private investors, Public Clarification CTP008, regarding the Corporate Tax treatment of family wealth management structures, was issued on September 19, 2025. Additionally, Public Clarification CTP009, concerning the application of the valuation method under transitional rules for qualifying immovable property disposal, was issued on September 26, 2025.

Action Item: Use your uaepass specifically for secure portal access and ensure your business contact information remains updated.

These regulatory shifts significantly impact how entities report long-term assets and liabilities under uae corporate tax law. Mastering these nuances is the final step before you begin the formal submission of your data.

Filing Your Corporate Tax Return

Navigating the administrative side of company tax requires a structured approach. The UAE Federal Tax Authority (FTA) has released a comprehensive Guide on filing and completing Corporate Tax (CT) Returns. This official corporate tax guide uae serves as the primary roadmap for entrepreneurs using the digital EmaraTax platform.

Applying the Tax Returns Guide UAE

The Corporate Tax Returns Guide CTGTXR1 is available to help SMEs submit accurate data. To manage filings, users log in via uaepass to the selfcare portal to access their dashboard. The FTA website provides resources categorized as Corporate Tax Guides, User Manuals, and Public Clarifications for clear uae corporate tax guide instructions.

If technical hurdles arise, you may contact the FTA directly for assistance with corporate tax uae requirements. Just Move assists startups in ensuring their uae corporate income tax filings are processed through accredited digital platforms efficiently. Proper submission is the only way to safeguard your eligibility for specific fiscal benefits.

Frequently Asked Questions

Who needs to file corporate tax in the UAE?

All taxable persons, including Free Zone entities and most juridical persons, must register and file a return even if their income is below the 375,000 AED threshold. This mandatory registration is a core requirement of the uae corporate tax guide for all local and foreign investors. You can access the registration platform via your UAE Pass to ensure your entity remains in good standing with the Federal Tax Authority.

How is corporate tax calculated in UAE?

UAE corporate tax is calculated as 9% of the taxable net profit that exceeds 375,000 AED. Businesses must adjust their audited financial statements for tax-specific rules to determine the final taxable amount. This tax returns guide note is crucial because even if your profit is zero, you must still submit the necessary paperwork through the digital selfcare portal.

Is UAE 100% tax free?

The UAE is no longer 100% tax-free for business entities as uae corporate income tax now applies to most commercial activities exceeding certain thresholds. While personal income tax remains at 0%, company tax is a standard requirement for both mainland and Free Zone operations. If you have questions about your specific activity, you should contact an advisor at Just Move to evaluate your eligibility for exemptions.

What is the tax rate for a company in the UAE?

The standard rate for corporate tax uae is 9% on all taxable profits exceeding the 375,000 AED threshold. A 0% rate applies to profits below this limit or for businesses qualifying for Small Business Relief through December 2026. This corporate tax guide uae serves as the definitive resource for understanding how these tiers affect your annual liability and long-term growth.

Securing these foundational details ensures your business is prepared for the final stages of administrative readiness and long-term fiscal health.

Navigating Your Tax Future in the UAE

The UAE corporate income tax landscape represents a strategic shift for business owners. While the 9% rate remains globally competitive, 2026 demands strict adherence to filing mandates. Staying informed through a reliable uae corporate tax guide is essential for managing your company tax status as Small Business Relief provisions approach expiration.

Success requires more than just accessing the selfcare portal via uaepass. Just Move provides expert advisory to ensure your setup aligns with every uae corporate tax and corporate tax uae requirement. From Free Zone qualifying income to the latest tax returns guide updates, our team offers a seamless, 100% online experience.

Proactive planning is the best strategy for entrepreneurs, and our accounting and corporate tax experts can help you stay compliant while you focus on scaling your business.