Tax and compliance for businesses in United Arab Emirates, what to know

Snapshot

Businesses in the United Arab Emirates face a 9 percent corporate tax on taxable profit above 375,000 dirhams, value added tax at 5 percent on most goods and services, and a set of registration and filing duties. A temporary small business relief and a free zone regime can change the position for some companies.

Corporate tax rate: 9 percent on taxable profit above 375,000 dirhams, with 0 percent up to that amount. As of 27 March 2026.
Value added tax: Standard rate of 5 percent on most goods and services, separate from corporate tax. As of 27 March 2026.
Small business relief: Available to elect where revenue does not exceed 3 million dirhams, for tax periods ending on or before 31 December 2026.
Free zone regime: A qualifying free zone person can access 0 percent on qualifying income under strict conditions. As of 27 March 2026.

Fees and features as of 27 March 2026Last reviewed 27 March 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider or a qualified adviser before acting.

Businesses in the United Arab Emirates work within a corporate tax that charges 9 percent on taxable profit above 375,000 dirhams, with a 0 percent band up to that amount, alongside value added tax at a standard 5 percent on most goods and services. A temporary small business relief lets eligible resident businesses with revenue up to 3 million dirhams elect to be treated as having no taxable income, available for tax periods ending on or before 31 December 2026. Free zone companies that meet strict conditions can access a 0 percent rate on qualifying income. This page is general information, not tax advice. Figures and rules here are shown as of 27 March 2026. Verify your position with the Federal Tax Authority or a qualified adviser.

How business tax works in the United Arab Emirates

The corporate tax applies to business profit, with a 0 percent band on taxable profit up to 375,000 dirhams and 9 percent above that. Value added tax sits separately at a standard rate of 5 percent on most goods and services, with its own registration thresholds and zero rated or exempt categories. The two taxes are administered by the Federal Tax Authority through its online systems, and registration, record keeping, and filing on time are central to staying compliant. As of 27 March 2026.

Small business relief

As a transitional measure, an eligible resident business can elect for small business relief where its revenue does not exceed 3 million dirhams in the relevant and previous tax periods. Where the election is made and accepted, the business is treated as having no taxable income for that period. This relief is available for tax periods ending on or before 31 December 2026 and must be actively elected when filing, so it is not automatic. As of 27 March 2026. Verify eligibility with the Federal Tax Authority.

Free zone companies

A company in a free zone that meets the strict conditions to be a qualifying free zone person can access a 0 percent rate on qualifying income, while non qualifying income is taxed at 9 percent. The rules include a de minimis test, and breaching it can remove qualifying status for the current and following tax periods. The detail is technical and fact specific, so confirm your status with a qualified adviser. As of 27 March 2026.

Where banking fits in

Tax does not change which bank you use, but clean records make both filing and bank reviews easier. Keeping business funds in a dedicated account, retaining statements, and being able to show source of funds supports compliance on both sides. The bank does not file your tax, and this page does not replace advice from a qualified professional. As of 27 March 2026.

What to check on tax and compliance

When reviewing tax and compliance for a United Arab Emirates business, check these points, as of 27 March 2026. Verify with the Federal Tax Authority or a qualified adviser

Whether your business must register for corporate tax and value added tax, and the filing deadlines that apply.
Whether you can elect small business relief for the current period, and how the 3 million dirham revenue test applies to you.
If you operate in a free zone, whether you meet the qualifying free zone person conditions and the de minimis test.

How to stay organised

Keep business income and spending in a dedicated account and retain statements and invoices for the required period.
Confirm your registration duties for corporate tax and value added tax, and diarise filing deadlines.
Take professional advice on reliefs and free zone status, because the rules are detailed and change. Verify your position with the Federal Tax Authority or a qualified adviser.

Compare business accounts available in United Arab Emirates

These providers accept business customers in the United Arab Emirates. Fees and eligibility shown as of 27 March 2026. This page is information, not tax advice. Confirm current terms with the provider before applying.

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Questions about tax and compliance in United Arab Emirates

What is the corporate tax rate in the United Arab Emirates?

The standard corporate tax rate is 9 percent on taxable profit above 375,000 dirhams, with a 0 percent band on profit up to that amount. Qualifying free zone persons can access a 0 percent rate on qualifying income where strict conditions are met. As of 27 March 2026. Verify your position with the Federal Tax Authority or a qualified adviser.

Is there VAT in the United Arab Emirates?

Yes. Value added tax applies at a standard rate of 5 percent on most goods and services, separate from corporate tax. Registration thresholds and zero rated or exempt categories apply. As of 27 March 2026. Verify your VAT obligations with the Federal Tax Authority.

What is small business relief in the United Arab Emirates?

Small business relief lets an eligible resident business elect to be treated as having no taxable income for a tax period where revenue does not exceed 3 million dirhams, as a transitional measure available for tax periods ending on or before 31 December 2026. It must be actively elected when filing. As of 27 March 2026. Verify eligibility with the Federal Tax Authority.

Does corporate tax change your business banking in the United Arab Emirates?

Corporate tax does not change which bank you use, but clean records help. Keeping business funds in a dedicated account, retaining statements, and being ready to show source of funds support both tax filing and bank reviews. The bank does not file your tax. As of 27 March 2026. Verify your obligations with the Federal Tax Authority or a qualified adviser.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 27 March 2026. Confirm current terms with the provider and your tax obligations with the Federal Tax Authority before acting.

Tax and compliance in United Arab Emirates