UAE Corporate Tax 2025 — Registration Rules, Thresholds & Updated Rates

UAE Corporate Tax 2025 – Complete Guide

Updated rules, rates, registration requirements & exemptions

Corporate Tax Overview:
• Standard Rate: 9%
• Threshold: AED 375,000
• Free Zone: 0% on Qualifying Income
• Registration: Mandatory for all businesses
• Applicable from: Financial year starting June 2023 onward

What is UAE Corporate Tax?

Corporate Tax (CT) is a federal tax on business profits introduced by the UAE. It applies to all companies, freelancers, and business activities generating taxable income inside the UAE.

UAE Corporate Tax Rates (2025)

Taxable Income	Tax Rate
Up to AED 375,000	0%
Above AED 375,000	9%
Free Zone Qualifying Income	0%

Who Must Register for Corporate Tax?

Registration is mandatory for:

• LLC companies
• Freelancers with a permit
• Self-employed earning business income
• Free Zone companies
• Partnerships
• Branches of foreign companies

Registration must be completed through the FTA EmaraTax Portal.

Exempt Entities

• Government entities
• Extractive & natural resource companies
• Charities certified by the Cabinet
• Investment funds (qualifying)

Small Business Relief (SME Relief)

Businesses with revenue below AED 3 million (per calendar year) may choose:

• 0% Corporate Tax under Small Business Relief
• Exemption available until December 31, 2026

Free Zone Corporate Tax Rules (2025)

Free Zone entities can enjoy 0% tax on Qualifying Income if:

• They maintain adequate substance
• Conduct qualifying activities (e.g., HQ services, logistics, manufacturing)
• Do not earn non-qualifying mainland income

Non-qualifying income will be subject to 9% tax.

How to Register for UAE Corporate Tax (Step-by-Step)

1. Visit EmaraTax Portal (FTA)
2. Login using UAE Pass
3. Open “Corporate Tax Registration”
4. Provide license details
5. Provide Emirates ID / Passport (for owner)
6. Submit business activity info
7. Receive your Corporate Tax Registration Number (CTRN)

Corporate Tax Calculator (Simple)

Enter Annual Profit (AED):

Frequently Asked Questions

1. Is corporate tax mandatory in UAE?

Yes, all businesses must register—whether tax is payable or not.

2. Do freelancers need to pay corporate tax?

Yes, if the freelancer has a license and earns taxable income.

3. Are Free Zone companies fully exempt?

Only if they meet Qualifying Free Zone requirements.

4. When do companies file tax returns?

Within 9 months after the end of the financial year.

Disclaimer: This post is for educational purposes only. Rules may change by the UAE Federal Tax Authority (FTA). Always verify updates directly from the official portal.