Introduction to UAE Corporate Tax
The UAE introduced a federal 9% Corporate Tax on business net profits starting from financial years commencing on or after June 1, 2023. This marks a major shift in the business landscape.
The AED 375,000 Tax-Free Profit Threshold
To support startup growth and small enterprises, the UAE Ministry of Finance established a progressive rate scale:
- Taxable Net Profits up to AED 375,000: Taxed at 0%.
- Taxable Net Profits exceeding AED 375,000: Taxed at 9%.
Action Plan: Keep Compliant Records
- Keep Audit-Ready Books: Even small businesses under the threshold must register for corporate tax and file returns.
- Project Tax Liability: Use our UAE Corporate Tax Estimator to model taxable net profits and corporate tax bills.
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