Corporate tax
United Arab Emirates
0% up to AED 375,000 of taxable income, 9% above; 0% on qualifying income of a Qualifying Free Zone Person, with conditions.
To set up the company properly: your country of residence may tax the dividends you receive, and it may also tax the company's profits under its rules on foreign companies controlled by its residents. A company managed from your country may be treated as resident there. This is general information, not tax advice.
Destination taxes only, before tax treaties and before any tax in your country of residence. Assumption: one shareholder, an individual who is not resident in the United Arab Emirates, holds 100% of the company.
- The 0% rate of a Qualifying Free Zone Person is not computed: it depends on the conditions above and on the kind of income.
The facts behind the figures
Corporate tax
- Corporate tax 0% on the part of taxable income up to AED 375,000. mof.gov.ae
- Corporate tax 9% on taxable income above AED 375,000. mof.gov.ae
- A Qualifying Free Zone Person pays 0% on qualifying income and 9% on other taxable income; it must keep adequate substance in the UAE, earn qualifying income and meet the transfer pricing and audited accounts rules. mof.gov.ae
- Small Business Relief: a resident company with revenue of AED 3,000,000 or less in the current and each previous tax period may elect to be treated as having no taxable income. mof.gov.ae
- Small Business Relief applies to tax periods ending on or before 31 December 2029. mof.gov.ae
Tax on dividends paid abroad
- Withholding tax on UAE-sourced income of non-residents without a permanent establishment is 0%. mof.gov.ae
VAT
- VAT standard rate 5%. mof.gov.ae
- VAT registration is mandatory above AED 375,000 and voluntary from AED 187,500 of taxable supplies, imports or expenses in 12 months; the mandatory threshold does not apply to foreign businesses. tax.gov.ae
Tax facts checked on 2026-10-23 from the official sources linked above. Rates change: check them with a firm before you act. General information, not tax advice.
Corporate tax in the United Arab Emirates: questions and answers
What is the corporate tax rate in the United Arab Emirates?
0% up to AED 375,000 of taxable income, 9% above; 0% on qualifying income of a Qualifying Free Zone Person, with conditions. The facts, with their official sources, are listed under "The facts behind the figures".
Is tax withheld on dividends paid from the United Arab Emirates?
0% withholding on payments to non-residents, for a shareholder who is an individual not resident in the United Arab Emirates. Your country of residence may tax the dividend you receive.
Can my own country tax the profit as well?
To set up the company properly: your country of residence may tax the dividends you receive, and it may also tax the company's profits under its rules on foreign companies controlled by its residents. A company managed from your country may be treated as resident there. This is general information, not tax advice.
How do I get an assessment for a company in the United Arab Emirates?
Use "Ask firms in the United Arab Emirates for an assessment": Accountanty forwards your request to firms we select in the United Arab Emirates, which assess your structure and income. The service is free for you.