🇦🇪 Corporate Tax in United Arab Emirates

Headline rate: 0–9%

Free Zone Establishment (FZE)

Free zone entities that meet the "Qualifying Free Zone Person" criteria under the UAE Corporate Tax Law (Federal Decree-Law No. 47 of 2022) pay 0% corporate tax on qualifying income — broadly, income from transactions with other free zone persons or from certain qualifying activities. Non-qualifying income is taxed at 9%. VAT at 5% applies to goods and services supplied within the UAE; intra-free-zone supplies between designated zones are zero-rated. There is no withholding tax on dividends, interest, or royalties paid abroad.

Mainland Limited Liability Company (LLC)

Mainland LLCs are subject to the standard UAE corporate tax regime: 0% on taxable income up to AED 375,000 and 9% on income above that threshold. There is no special qualifying exemption as with free zone entities — all mainland income is taxable at the standard rate. VAT at 5% applies to most goods and services. The company must register with the FTA, file annual corporate tax returns, and maintain audited financial statements if revenue exceeds certain thresholds. No withholding tax applies on outbound payments.

Key Facts

Double tax treaties: 140
Memberships: GCC, WTO, OPEC, UN, Greater Arab Free Trade Area
Legal system: Civil law + Sharia elements
Fiscal year: January – December

This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.