What is the UAE Corporate Tax rate?
The UAE Corporate Tax rate is 0% for taxable income up to AED 375,000 and 9% for taxable income above AED 375,000. This applies to most businesses, while certain businesses may be subject to different rates.
The UAE Corporate Tax uses a progressive rate structure:
Standard Tax Rates
- 0% Rate: Taxable income up to AED 375,000
- 9% Rate: Taxable income above AED 375,000
- Small business relief threshold at AED 375,000
Special Rates
- Large multinational enterprises may have different rates
- Natural resource extraction businesses (higher rates)
- Free zone businesses (0% on qualifying income)
- Banks and financial institutions (standard 9%)
Calculation Example
- Taxable income AED 500,000:
- First AED 375,000 at 0% = AED 0
- Remaining AED 125,000 at 9% = AED 11,250
- Total tax = AED 11,250
Rate Considerations
- Rates may be subject to future changes
- Different rates for different business activities
- International tax treaties may affect rates
