The UAE's 9% corporate tax, explained

The UAE introduced federal corporate tax, ending its reputation as a zero-tax jurisdiction — but the headline 9% hides a more generous reality for most businesses.

How the rate works

The first AED 375,000 of taxable profit is taxed at 0%; profit above that is taxed at 9%. For a business earning AED 1,000,000, only the portion above the threshold is taxed — an effective rate well below 9%.

The free-zone question

Qualifying Free Zone Persons can still access a 0% rate on qualifying income, provided they meet substance requirements and do not conduct disqualifying mainland business. Getting this wrong can cost the entire benefit, so the structuring matters.

The global minimum tax catch

Large multinational groups (broadly, those above €750m in revenue) may face a separate 15% global minimum top-up tax under the OECD's Pillar Two rules — so the 9% headline is not the whole story for big groups.

If you operate in or are expanding to the UAE, see our UAE tax services — or talk to us before you structure.