When is the UAE corporate tax return due?

Once a year, within 9 months of the end of your financial year. For a year ending 31 December 2026, the return and any payment are due by 30 September 2027.

Do free zone companies pay corporate tax?

Free zone companies may qualify for a 0% rate on qualifying income if they meet the Qualifying Free Zone Person conditions, but they still must register for corporate tax and file a return. Non-qualifying income can be taxed at 9%.

What if my profit is under AED 375,000?

You pay 0% on profit up to AED 375,000, but you still must register, file a return, and keep proper accrual-basis records for 7 years. Small Business Relief may also simplify filing for eligible businesses through tax periods ending 31 December 2026.

Do I need an accountant for corporate tax?

You need accrual-basis books and a correct tax computation. A bookkeeper keeps your records filing-ready all year so the return is straightforward; for complex cases a tax adviser confirms the computation. Clean monthly books are what make corporate tax simple.

Corporate tax in the UAE: who pays, the rates, and how to be ready (2026)

A clear 2026 guide to UAE corporate tax: who pays, the 0% and 9% rates, the AED 375,000 threshold, filing deadlines, penalties, and what your books need to look like.

UAE corporate tax is now part of running a business here, and for most small and medium companies it is more about being organized than about a big tax bill. This guide explains who pays, the rates, the deadlines, the penalties, and what your books need to look like in 2026.

What UAE corporate tax actually is

Corporate tax is a federal tax on the profit of businesses, introduced under Federal Decree-Law No. 47 of 2022 and effective for financial years starting on or after 1 June 2023. It applies to most businesses operating in the UAE, whether on the mainland or in a free zone, with some specific exemptions.

The rates: simpler than they sound

0% on taxable income up to AED 375,000.
9% on taxable income above AED 375,000.

So a business with AED 500,000 in taxable profit pays 9% on the AED 125,000 above the threshold, which is AED 11,250. The first AED 375,000 is always taxed at 0%. The real work is calculating that taxable profit correctly, not the rate itself.

Who pays and who is exempt

Mainland companies and most businesses with a UAE trade licence are within scope.
Free zone companies may qualify for a 0% rate on qualifying income if they meet the Qualifying Free Zone Person conditions, but they still must register and file.
Individuals are only in scope on business or commercial activity that needs a licence, not on salary, personal investment, or personal real estate.
Government entities, certain public-benefit organizations, and qualifying funds can be exempt.

Important: being under the AED 375,000 threshold does not mean you can ignore corporate tax. You still register, still file, and still keep records. You just pay 0%.

Registration, deadlines, and records

Every taxable business must register for corporate tax with the Federal Tax Authority and obtain a corporate tax registration number. The return is filed once a year, due within 9 months of the end of your financial year. For a financial year ending 31 December 2026, the return is due 30 September 2027.

Records must be kept for 7 years. Late registration carries a fixed AED 10,000 penalty. Late filing is AED 500 per month for the first 12 months, rising to AED 1,000 per month after that. Late payment attracts 14% per annum.

What your books need to look like

The law requires financial statements prepared on the accrual basis of accounting. That means revenue is recognised when earned and expenses are matched to the period they relate to, with receivables, payables, and depreciation reflected properly. Many small businesses keep cash-in-cash-out records, which is not enough for a corporate tax return. Converting to accrual is far easier if you start the year right rather than scrambling at year end.

What to do in 2026

Register for corporate tax if you have not already. The AED 10,000 late penalty is avoidable.
Move your books to the accrual basis so the return is straightforward.
Estimate your taxable profit so you know whether you will owe anything and can set the cash aside.
Put the filing date in your calendar (9 months after your financial year end) so it does not sneak up on you.

None of this is dramatic on its own. The businesses that find corporate tax stressful are the ones whose books are not ready. Keep them organized monthly and filing becomes a formality.