Tax & International Structuring in the United Arab Emirates

Full guide · Source-checked research100% of statements checked against a source133 checked against an official source9 checked against a secondary sourceChecked 2026-10-19Not yet professionally reviewed

• Corporate tax is charged at 0% on taxable income up to AED 375,000 and at 9% on taxable income above AED 375,000.

  Federal; applies in all seven emirates and to mainland and free zone businesses unless the Qualifying Free Zone Person regime applies. Exempt persons are listed in ae-tax-017.Ministry of Finance · checked 2026-10-18

• Corporate tax applies to financial years starting on or after 1 June 2023, so a business with a calendar financial year became subject to it from 1 January 2024.

  Federal.Federal Tax Authority · checked 2026-10-18

• A Qualifying Free Zone Person pays corporate tax at 0% on qualifying income and 9% on other taxable income, provided it keeps adequate substance, earns qualifying income, has not elected to be taxed at standard rates and meets transfer pricing requirements.

  Free zone persons only (mainland entities cannot use this regime). Failing any condition removes the status from the start of that tax period. The incentive period may be extended but cannot exceed 50 years. Detailed qualifying activities and de minimis rules are in Cabinet and Ministerial Decisions not reviewed here.Ministry of Finance · checked 2026-10-18

• Withholding tax on UAE-sourced income paid to non-residents is set at 0%.

  Covers dividends, interest, royalties and service fees paid to non-residents, unless the income is attributable to a UAE permanent establishment or nexus; the Cabinet may set other rates.Ministry of Finance · checked 2026-10-18

• The corporate tax law was amended to introduce a top-up tax on multinational enterprises, with rules to be set by Cabinet decision so that their total effective tax rate is 15%.

  Federal. Applies only to multinational enterprise groups defined by Cabinet decision.UAE Government Portal (u.ae) · checked 2026-10-18

• A domestic minimum top-up tax at 15% applies to multinational groups with consolidated revenue of EUR 750 million or more in at least two of the four preceding financial years, for financial years starting on or after 1 January 2025, under Cabinet Decision No. 142 of 2024.

  Large multinational groups only. The return and payment are due within 15 months after the financial year end (18 months for the transitional year).KPMG · checked 2026-10-18

• Resident persons with revenue of AED 3,000,000 or less in the current and all previous tax periods may elect Small Business Relief and be treated as having no taxable income for that period.

  Not available to Qualifying Free Zone Persons or to members of multinational groups with consolidated revenue above AED 3.15 billion. The election is made per tax period and other reliefs cannot be used in that period.Federal Tax Authority · checked 2026-10-18

• Small Business Relief is available only for tax periods ending on or before 31 December 2026.

  Applies to tax periods starting on or after 1 June 2023.PwC Middle East · checked 2026-10-18

Read the full guide: Tax, accounting and statutory reporting