UAE Corporate Tax 2026: Complete Guide
One of the questions we hear most in our years of tax and accounting work…
As per Ministry of Finance, corporate tax is tiered in the following threshold system:
| Category | Tax Rate & Threshold | Who can avail of this? |
| Taxable persons | 0% rate on taxable profits up to AED 375,000 9% rate on taxable profits above AED 375,000 | Applies to most taxable persons |
| Qualifying Free zone Persons | 0% on qualifying income and 9% on non-qualifying income | Qualifying Income (0%) includes: Income from B2B transactions with other FZ Persons (subject to exclusions) Transactions with a Non-Free FZ Persons, but only for Qualifying Activities that are not Excluded Activities Income from Qualifying Intellectual Property Other income but within the de minimis test Non-Qualifying Income (9%) includes: Income from Domestic or Foreign Permanent Establishments Certain real estate income Non-qualifying IP income |
| Eligible small businesses with revenue up to AED 3 million per year (“small business relief”) | 0% until the end of 2026 and 9% thereafter | (as of publishing) This incentive will be applicable until the end of 2026 |
| Multinational enterprises (MNEs) with global revenue > ā¬750 million in at least 2 of the previous 4 fiscal years | 15% (Domestic Minimum Top-up Tax (DMTT)) | Applicable from 2025, large multinational groups are levied an added tax on top of the CT rate of 9%. This ensures their overall minimum effective tax rate reaches 15% under OECD Pillar Two rules, without changing the standard rate for most businesses. |
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