AhmedWalid HalabiVSD Global
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Corporate Tax
Corporate Tax in UAE, Made Clear
A 9% rate for most companies, 0% for qualifying Free Zone income — AURION helps you register correctly and file on time, every time.
Trusted by 6,800+ companies across the UAE for tax registration and compliance.
5,000+Businesses Formed
Corporate Tax in the UAE
One Rate for Most Companies. Zero for Qualifying Free Zone Person.
9%Standard companies
0%Qualifying Free Zone
Most UAE companies pay 9% Corporate Tax on net profit above AED 375,000. Free Zone companies can access a 0% rate — but only on income that meets specific qualifying conditions.
5 Conditions to Qualify
Generate Qualifying Income from Qualifying Activities.
Maintain adequate substance — office space, employees, and operating expenditure proportional to the activity.
Comply with the arm's-length principle and maintain transfer pricing documentation.
Keep non-qualifying revenue within the De Minimis limit (under 5% of total income or AED 5 million, whichever is lower).
Prepare audited financial statements.
Miss a condition partway through a tax period, and you lose Qualifying Free Zone Person status for that period and the following 4 — getting the assessment right from day one matters.
Corporate Tax Guide
Flip through AURION's complete Corporate Tax Guide below, or download your own copy.
Free Zone Corporate Tax
What Counts as "Qualifying Income"?
A Qualifying Free Zone Person only earns the 0% rate on income that meets specific criteria set out in Cabinet Decision 55 and Ministerial Decision 139 of 2023.
Income outside these categories — or exceeding the de minimis threshold — is taxed at the standard 9% rate, even for an otherwise Qualifying Free Zone Person.
Free Zone to Free Zone
Income from transactions with another Free Zone Person who is the beneficial recipient.
Other Requirements
Maintaining adequate substance — a physical office, adequate staff, and reasonable operating expenses — plus compliance with transfer pricing rules and keeping audited financial records.
De Minimis Requirement
Non-qualifying income stays Qualifying Income as long as it's under 5% of total revenue or AED 5 million, whichever is lower.
Which Activities Qualify for 0% Corporate Tax?
These activities, when conducted with a Non-Free Zone Person, still qualify for the 0% rate — provided your company maintains Qualifying Free Zone Person status.
- Manufacturing & ProcessingManufacturing or processing of goods and materials.
- Trading of Qualifying CommoditiesTrading in commodities that meet the Qualifying Commodities definition.
- Holding Shares & SecuritiesHolding shares and other securities for investment purposes.
- Shipping OperationsOwnership, management, and operation of ships.
- Fund & Wealth ManagementFund management, wealth management, and investment management services.
- Headquarters & Treasury ServicesHeadquarters, treasury, and financing services provided to Related Parties.
- Aircraft Financing & LeasingFinancing and leasing of aircraft.
- Logistics & Designated Zone DistributionLogistics services, and distribution of goods from a Designated Zone.
Corporate Tax Registration
Getting Registered — Step by Step
Every UAE licensee must register for Corporate Tax — including zero-turnover companies, branches of foreign companies, and offshore entities. AURION manages the full process on your behalf.
- 01Register Within 3 Months of Incorporation
Mandatory for every UAE company, including those with zero turnover, no activity, or 100% turnover outside the UAE.
- 02Branches Register Individually
Branches aren't separate legal entities for CT purposes, but still require their own registration — including branches of foreign companies.
- 03Check Article 24 Exemptions
Certain income may be excluded from Corporate Tax under Article 24 of the Decree-Law — AURION reviews your structure to confirm what applies.
- 04File & Pay Within 9 Months of Financial Year End
The deadline follows your company's specific financial year, not the calendar year — see the table below.
Documents Required for Registration
- Trade License copy
- MOA and Addendum to MOA (if any)
- Passport, Visa, and Emirates ID of Partners
- Authorized signatory details
- Tenancy Contract or Shared Desk Agreement
- Company email ID (for notifications and OTP)
- Company contact mobile number (for notifications and OTP)
- FTA login details, if already registered for VAT
Visa Cancellation Fees
NormalAED 272
UrgentAED 534
Outside UAEAED 587
Processing time: 3–4 working days
Deadlines & Compliance
Know Your Filing Deadline
Your Corporate Tax return filing and payment deadline is fixed at 9 months after your financial year ends — it does not follow the calendar year.
Filing & Payment Deadlines
| Your Financial Year End | Your Filing & Payment Deadline |
|---|---|
| 31 December 2025 (Standard Calendar Year) | 30 September 2026 |
| 31 March 2026 | 31 December 2026 |
| 30 June 2026 | 31 March 2027 |
| 30 September 2025 | 30 June 2026 |
There is no mechanism to request a deadline extension from the Federal Tax Authority — even a zero-profit or loss-making company must file and pay on time.
Late Penalty Rates
| Violation | Penalty Rate | Notes |
|---|---|---|
| Late Filing | AED 500 per month | Scales to AED 1,000/month from the 13th month onward |
| Late Payment | 14% per annum | Calculated monthly on the outstanding unpaid balance |
Don't Miss Your Deadline
Late Filing Starts at AED 500 a Month
Filing late doesn't just cost a flat fee — it compounds. The penalty scales up the longer it goes unresolved, with no extension mechanism available from the FTA.
Rises to AED 1,000/month after 12 months, plus 14% annual interest on any unpaid balance.
AED 500
Common Questions
Corporate Tax questions,answeredclearly.
Straight answers to the Free Zone qualifying-income questions that come up most.
What's the difference between a Free Zone and a Designated Zone for tax purposes?
A Free Zone is a business jurisdiction governed by its own Free Zone Authority — there are more than 40 in the UAE. A Designated Zone is a fenced, customs-controlled Free Zone treated as outside UAE territory for VAT purposes. Both can access Corporate Tax benefits, but Designated Zone status affects specific trading and VAT treatment.
Is all Free Zone company income automatically taxed at 0%?
No. Only income that meets the "Qualifying Income" criteria — earned by a Qualifying Free Zone Person — gets the 0% rate. Income outside those criteria, or exceeding the de minimis limit, is taxed at the standard 9%.
My Free Zone company only provides services to clients outside the UAE — is that income zero-rated?
No. For service companies, worldwide income is taxable unless it's derived specifically from a Free Zone Person as the beneficial recipient. Income from services to a non-Free Zone client — anywhere in the world — is subject to the standard 9% rate (except logistics services with genuine Free Zone substance).
What if my Free Zone company has a branch on the mainland?
Income attributable to a mainland branch is treated as a Domestic Permanent Establishment and does not qualify for the 0% rate, except within the De Minimis limit. The Free Zone entity itself remains eligible for 0% on its own Qualifying Income.
What does "maintaining adequate substance" actually mean?
Your core income-generating activities must genuinely take place in the Free Zone, with adequate assets, qualified employees, and operating expenditure proportional to your activity level. Outsourcing is allowed — to a Related Party or third party — as long as it's supervised from within the Free Zone.
What happens if we stop meeting the Qualifying Free Zone Person conditions partway through the year?
You lose Qualifying Free Zone Person status from the start of that tax period, and for the following 4 tax periods — a 5-period reset, not a one-time penalty.
What Our Clients Say
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Get Your Corporate Tax Registration Right, First Time
From assessing Qualifying Income to filing on time — AURION handles it end-to-end.
Whether you're mainland or Free Zone, our tax consultants assess your specific structure, confirm your applicable rate, and manage your registration and filing deadlines.