Corporate tax applies to all businesses with a commercial license in the UAE mainland, including foreign branches with a permanent establishment. Qualifying free-zone entities can still enjoy a 0% tax rate on eligible income, provided they meet the prescribed conditions and avoid doing business with the mainland.

The standard corporate tax rate is 0% on taxable income up to AED 375,000 and 9% on taxable income above that threshold. A Small Business Relief scheme is available for companies with annual revenues not exceeding AED 3 million until the end of 2026, offering temporary relief from corporate tax obligations.

From 1 January 2025, multinational enterprises with consolidated global revenues exceeding €750 million will be subject to a Domestic Minimum Top-up Tax (DMTT) of 15%, in line with the OECD’s global tax framework.

Exemptions apply to certain entities, including government bodies, extractive businesses, qualifying investment funds, and public benefit organizations. Dividends, capital gains, intra-group reorganizations, and qualifying free-zone income are generally exempt. Businesses must file annual corporate tax returns within nine months of the end of their financial year and maintain proper transfer pricing documentation where applicable.

• 0% corporate tax on taxable income up to AED 375,000

• 9% tax on income above AED 375,000

• Small Business Relief for revenues up to AED 3M (available until 2026)

• 15% minimum tax for large multinationals from 2025

• 0% rate for qualifying free-zone income

• Exemptions for dividends, capital gains, and group reorganizations

• Annual filing requirement with transfer pricing compliance

We don’t believe in one-size-fits-all auditing. At Pawan Lohia & Associates, every Risk-Based Internal Audit begins with an in-depth understanding of your business model, industry dynamics, and regulatory exposure. Our team collaborates closely with your internal stakeholders to prioritize risk areas, define scope, and execute detailed audits with a strategic lens.