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At what profit does the 9% corporate tax start in the UAE?

Asked by Anonymous·Jun 26, 2026·1 answers
An SME owner wants to know the exact taxable income level where the 9% UAE corporate tax kicks in.

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
Under the UAE corporate tax regime, the 9% rate applies only to the portion of taxable income that exceeds AED 375,000. Taxable income up to and including AED 375,000 is taxed at 0%. This is a marginal-style threshold applied to net taxable income for the financial year, not to turnover or gross revenue. For example, a business with taxable income of AED 500,000 would generally pay 0% on the first AED 375,000 and 9% on the remaining AED 125,000, subject to any reliefs or adjustments that apply. The threshold is set under Federal Decree-Law No. 47 of 2022 and related decisions, and is intended to ease the burden on small and medium businesses. Note that "taxable income" is net accounting profit after allowable deductions and adjustments, so the figure that matters is not simply your sales. Eligible small businesses may also use Small Business Relief instead. Confirm the precise calculation for your accounts with the Federal Tax Authority or a qualified UAE tax adviser; you can find verified UAE legal professionals on LEXAI.
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