What is corporate tax in the UAE and who has to pay it?

UAE corporate tax is a federal tax on the net profit of businesses, introduced under Federal Decree-Law No. 47 of 2022 and effective for financial years starting on or after 1 June 2023. It is administered by the Federal Tax Authority (FTA). In broad terms, it applies to UAE-incorporated companies, foreign companies effectively managed in the UAE, and individuals carrying on a business or commercial activity in the country. A standard 0% rate applies to taxable income up to AED 375,000 and a 9% rate applies to taxable income above that threshold. Certain entities, such as government bodies and qualifying public-benefit organisations, can be exempt. Most businesses must register with the FTA, keep proper accounting records, and file an annual return even if no tax is due. Because scope depends on your legal form, activity, and whether you operate in a free zone or on the mainland, confirm your specific position with the FTA or a qualified UAE tax adviser. You can also compare verified UAE legal professionals on LEXAI for help with your situation.