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What is the corporate tax rate in the UAE?

Asked by Anonymous·Jun 26, 2026·1 answers
A business owner wants to know the headline rate of UAE corporate tax and how the brackets work.

This answer is AI-generated by LEXAI. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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LEXAI

AI-generated answer

Jun 26, 2026
The UAE applies a two-tier corporate tax structure under Federal Decree-Law No. 47 of 2022. Taxable income up to AED 375,000 is taxed at 0%, and taxable income above AED 375,000 is taxed at 9%. This makes the regime one of the lowest headline corporate tax rates among major economies and is designed to support small businesses and start-ups. A separate set of rules applies to large multinational groups within the scope of the OECD's global minimum tax framework, which may face a different effective rate, but that affects only very large groups and not typical UAE companies. Qualifying Free Zone Persons can still benefit from a 0% rate on their qualifying income if they meet all conditions. The rate applies to net accounting profit after permitted adjustments, not to gross revenue. Because your effective position depends on deductions, exemptions, and your structure, confirm the figures that apply to your business with the Federal Tax Authority or a qualified UAE tax professional. You can compare verified UAE legal professionals on LEXAI if you need tailored advice.
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