UAE Corporate Tax in 2024: What Every Business Owner Needs to Know

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The UAE Corporate Tax is now in force. Here's what business owners need to understand about rates, exemptions, registration deadlines, and how to prepare.

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The introduction of Corporate Tax in the UAE represents one of the most significant shifts in the country's business environment in decades. From June 2023, businesses with taxable income above AED 375,000 are subject to a 9% corporate tax rate — a landmark change for a jurisdiction long known for its zero-tax status.

For business owners and investors, the implications are broad and immediate. Here is what you need to know:

Who Is Subject to Corporate Tax?

All UAE-registered businesses — whether on the Mainland or in a Free Zone — are potentially subject to Corporate Tax. Free Zone entities that earn "qualifying income" may still benefit from a 0% rate, but the conditions are specific and must be carefully evaluated.

What Are the Rates?

• 0% on taxable income up to AED 375,000
• 9% on taxable income above AED 375,000
• 15% on multinational enterprises meeting OECD Pillar Two thresholds

What Should You Do Now?

• Register for Corporate Tax with the Federal Tax Authority (FTA)
• Review your accounting records and financial structure
• Identify any available exemptions or deductions
• Ensure your bookkeeping is aligned with FTA requirements