Business

UAE corporate tax and VAT for small companies

The 9% corporate tax, the small business relief, VAT thresholds and the deadlines you cannot miss.

Updated 2 Nov 2026 · 1 min read

Corporate tax

Since June 2023 UAE companies pay 9% on taxable profit above AED 375,000 and 0% below it. Every company must register with the Federal Tax Authority and file a return within nine months of its financial year end. Qualifying free zone companies can keep a 0% rate on qualifying income.

VAT

VAT is 5%. Registration is mandatory above AED 375,000 annual taxable turnover and voluntary above AED 187,500. Returns are quarterly for most small companies.

Keep it simple

Use an accountant from day one; penalties for late registration start at AED 10,000.

Written by LOCA team
This guide is information, not legal or financial advice.

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