GULF CONSULT Advisory on
UAE Corporate Tax 2026: What Every Business Owner Must Know Before Filing a Return
Registration, taxable income, Small Business Relief (now extended to 2029) and filing deadlines: a plain guide to UAE corporate tax for business owners.
UAE corporate tax applies to financial years starting on or after 1 June 2023, under Federal Decree-Law No. 47 of 2022. Most companies have now filed at least one return, yet the same questions come up every year: who must register, how taxable income is worked out, and who can claim Small Business Relief.
This guide covers the rules a business owner needs before the next return is due.
Who Pays UAE Corporate Tax
Every company incorporated in the UAE, on the mainland, in a free zone or offshore, is a resident taxable person. So are foreign companies effectively managed and controlled from the UAE, and individuals running a business whose turnover exceeds AED 1 million in a calendar year.
Being a taxable person means registering and filing a return every year, even if no tax is due.
The Rates
The headline rates are simple:
- 0% on taxable income up to AED 375,000
- 9% on taxable income above AED 375,000
- 0% on qualifying income of a Qualifying Free Zone Person, with 9% on the rest
- A 15% domestic minimum top-up tax for members of multinational groups with revenue of EUR 750 million or more
How Taxable Income Is Worked Out
The starting point is the accounting net profit in financial statements prepared under IFRS (or IFRS for SMEs where revenue is below AED 50 million). That profit is then adjusted: exempt income such as qualifying dividends is removed, and some expenses are only partly deductible, including 50% of client entertainment costs and net interest above 30% of EBITDA (where it exceeds AED 12 million).
Transactions with related parties and connected persons must be at arm's length, and larger businesses must file a transfer pricing disclosure form with the return.
Small Business Relief, Now Extended to 2029
A resident business with revenue of AED 3 million or less in the current and every previous tax period can elect to be treated as having no taxable income. Ministerial Decision No. 131 of 2026 extended the relief to tax periods ending on or before 31 December 2029; it was previously due to end in 2026.
The relief is an election made in the return, not an exemption from filing. Qualifying Free Zone Persons and members of large multinational groups cannot use it, and losses incurred in a relief year cannot be carried forward.
Registration and Filing Deadlines
A company incorporated today must register for corporate tax within three months of incorporation, through EmaraTax. Missing the registration deadline carries a fixed AED 10,000 penalty.
The return and payment are due within nine months of the end of the tax period. For a 31 December year-end, that means 30 September of the following year.
A Checklist Before You File
Before the next return, make sure you can tick each of these:
- Financial statements finalised, and audited where your revenue or free zone status requires it
- Related-party transactions listed and priced at arm's length
- Non-deductible and partly deductible expenses identified
- Small Business Relief or free zone position confirmed for the year
- Tax losses brought forward checked against the 75% offset limit
Frequently Asked Questions
What is the UAE corporate tax rate?
0% on taxable income up to AED 375,000 and 9% above that. Qualifying Free Zone Persons pay 0% on qualifying income, and large multinational groups may owe a 15% top-up tax.
Do I need to file a corporate tax return if my company made a loss?
Yes. Every taxable person must file a return each year, whether it made a profit, a loss or claims Small Business Relief.
Has UAE Small Business Relief been extended?
Yes. Ministerial Decision No. 131 of 2026 extended it to tax periods ending on or before 31 December 2029. The AED 3 million revenue threshold did not change.
When is the UAE corporate tax return due?
Within nine months of the end of the tax period. For a calendar-year company, the 2026 return is due by 30 September 2027.
What is the penalty for late corporate tax registration?
A fixed administrative penalty of AED 10,000.
Sources
- Federal Tax Authority: Corporate Tax legislation
- PRF Management: Small Business Relief extended to 2029 (Ministerial Decision No. 131 of 2026)
- Federal Tax Authority: 30 September 2026 filing deadline
This article is general information, not advice for your situation. Rules change; check the current position or speak to an advisor before acting.
Need help with this? See our Corporate Tax Services.
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