UAE Corporate Tax Guide — 9% CT Rate, Who Pays and How to Calculate
Updated October 2026 · 4 min read
Quick start: Open the free UAE Corporate Tax Calculator — enter net profit to see your CT liability under the 9% rate.
The UAE Federal Corporate Tax (CT) came into effect for financial years starting on or after 1 June 2023. It marked a significant shift — the UAE had no corporate income tax for most businesses for decades. The regime is administered by the Federal Tax Authority (FTA).
UAE Corporate Tax Rates
| Taxable income | CT rate |
|---|---|
| AED 0 – AED 375,000 | 0% |
| Above AED 375,000 | 9% |
| Qualifying Free Zone Persons | 0% on qualifying income |
The 0% band effectively means businesses with profits up to AED 375,000 (~$102,000) pay no corporate tax. For profits above this, only the excess is taxed at 9%.
Worked Example
A mainland UAE business earns AED 800,000 net profit:
- First AED 375,000 × 0% = AED 0
- Remaining AED 425,000 × 9% = AED 38,250
- Total CT liability: AED 38,250 (effective rate: 4.78%)
Who Is Subject to UAE Corporate Tax?
- UAE-incorporated companies and branches of foreign companies
- Foreign companies effectively managed and controlled in the UAE
- Individuals conducting business in the UAE with annual turnover exceeding AED 1 million
Exempt: Government entities, qualifying public benefit organisations, investment funds meeting certain conditions, and individuals earning employment income or investment income not derived from a business.
Calculate UAE Corporate Tax
Enter net profit and see your CT liability with the AED 375,000 free band applied automatically.
Open Free UAE CT Calculator →