UAE Corporate Tax rates: 0%, 9%, and what owners need to check

UAE Corporate Tax is often shortened to “9% of profit.” That shortcut hides the steps that determine the real number. The general rate is 0% on taxable income up to AED 375,000 and 9% on taxable income above that threshold, but taxable income is not automatically the same as the profit shown in a bank account or a management spreadsheet.

Start with accounting income

The calculation starts from the accounting income in the financial statements for the tax period. Relevant adjustments are then applied under the Corporate Tax rules. Reliefs, exemptions, tax groups, and the treatment of a Qualifying Free Zone Person can change the result, so the two headline rates should never be used as a complete answer without reviewing the business facts.

As a simple rate illustration only, AED 500,000 of taxable income under the general rates would place AED 375,000 in the 0% band and AED 125,000 in the 9% band. That produces AED 11,250 before considering tax credits or another rule that affects the person or income.

Small Business Relief was extended

An eligible Resident Person may elect for Small Business Relief where revenue does not exceed AED 3,000,000 in the relevant tax period and previous tax periods within the relief window. Ministerial Decision No. 131 of 2026 extended that window to tax periods ending on or before 31 December 2029. Eligibility, exclusions, and the effect of an election still need case-by-case review.

Work backwards from the deadline

The general Corporate Tax return and payment deadline is nine months after the end of the tax period. The useful management date is earlier: the point by which sales, costs, bank accounts, owner transactions, assets, and year-end adjustments must be complete enough to prepare the financial statements and review the tax treatment.

• Confirm the financial year and the deadline shown in EmaraTax.
• Reconcile every material bank and payment account.
• Separate business costs from owner or personal transactions.
• Keep evidence for income, expenses, assets, liabilities, and elections.
• Record assumptions and agree who is responsible for submission.

The FTA states that Corporate Tax records generally need to be kept for at least seven years after the end of the relevant tax period. Good preparation therefore leaves a trail from the return back to the financial statements, ledger entries, and supporting documents—not only a final number.