Emirates: What corporate tax and personal rules concern

The UAE does not levy personal income tax. It does, however, levy a VAT of 5 % and a corporate tax: 0 % on taxable income up to AED 375,000, and 9 % on income exceeding that amount, for fiscal years beginning on or after June 1, 2023. This tax also applies to individuals engaged in commercial activities: this is something to consider if you are an entrepreneur. The information below is sourced from the UAE government portal (Corporate Tax and Other Taxes pages, updated March 30, 2026), the Ministry of Finance, the Federal Tax Authority, and Cabinet decisions.

This page is incomplete. It does not cover: the revenue threshold above which a natural person's business becomes subject to corporate tax, what is excluded for a natural person, the tax applicable to large groups, or any recent legislation on the procedure. These points are not addressed here. Tax residency and the residency certificate are covered on our "Living in the Emirates" page.

What individuals don't pay, and what they do pay

The official portal states: "The UAE does not levy income tax on individuals." It specifies that the State levies, on consumption, a VAT of 5 % on the purchase of goods and services, borne by the final buyer, and an excise duty on certain goods harmful to health.

No personal income tax does not mean no tax at all. Corporate tax can affect individuals when they carry out business activities, as shown below.

Corporate tax: rates and application date

Who is in the field

The two official sources consulted describe the field differently.

The ministry's text specifies that the definition of the individuals concerned must come from a Cabinet decision "to be issued in due course." This page does not publish either a threshold or a definition of the activity for an individual, as we have not been able to review them. If you operate a business as a sole proprietor, this point can be verified against the regulations in effect at the date of your application.

Free trade zones

According to the ministry, "Legal persons established in a UAE Free Zone are also within the scope of Corporate Tax." A qualifying free zone individual benefits from a 0.% rate on their qualifying income. The portal adds that free zone companies that meet the requirements and do not operate on the mainland can retain their incentives.

Non-residents

A non-resident foreign entity with a permanent establishment in the UAE falls within the scope. Without a permanent establishment, withholding tax may apply; the ministry cites a rate of 0.% for certain non-residents.

Exempt entities

The portal lists public or state-controlled entities designated by Cabinet decision, extractive and natural resource activities, qualified public utility entities, and certain pension, social security, and investment funds. The portal specifies that these funds are exempt under certain conditions and with the approval of the Federal Tax Authority. These entities may also be exempt from registration and reporting requirements.

Declare and pay

The ministry indicates that the return is due within nine months of the end of the period. The Federal Tax Authority announced a deadline for the fiscal year ending December 31, 2025: "September 30, 2026 is the deadline for filing tax returns and paying corporate tax." This date has been moved to the review date (October 18, 2026). It corresponds to a nine-month period starting from December 31. The registration procedures and penalties are not detailed here; this page does not provide any information on them.

The tax residence of natural persons

Cabinet Decision No. 85 of 2022 establishes the tax residency requirements for individuals. Effective March 1, 2023, it requires 183 days or more of presence over a twelve-month period, or 90 days or more if a specific connection condition is met: UAE or Gulf Cooperation Council (GCC) nationality, or a valid residence permit, plus a permanent residence, employment, or business activity within the UAE. Our "Living in the UAE" page provides further details on these criteria and the residency certificate.

This is not yet decided

• Large corporations. The portal indicates that large multinational groups meeting certain criteria inspired by OECD Pillar 2 will be subject to a different rate, "not yet specified." We do not publish any rates on this point.
• Recent texts. The texts of 2025 and 2026 on VAT and tax procedure are not described here.

Taxation in the Emirates: a numerical example (fictitious profile)

Situation. A fictitious French business owner moves to the Emirates and owns a company there whose financial year ends on December 31, 2026. His taxable income is 1,200,000 AED (hypothesis).

Issue. What corporate tax does the company owe, and by what filing date?

Strategy. Apply 0 % to the share up to AED 375,000 and 9 % to the share above that, according to the published rates, then count 9 months from the closing date, as for the financial year ending December 31, 2025, whose announced maturity was September 30, 2026.

Result.

With a taxable income of AED 300,000, the tax liability would be zero. This profile is hypothetical: it does not take into account exemptions, free trade zones, or other relevant legislation, and does not reflect your specific situation. The nine-month calculation is based on an assumption aligned with the Federal Tax Authority's announcement for the 2025 fiscal year.

Taxation in the Emirates: what changes depending on your situation

• The form of your business : company, free zone, permanent establishment or sole proprietorship.
• The amount of taxable income, which sets the share at 0 % and the share at 9 %.
• The closing date of the financial year, which sets the deadline.
• Your tax residence, Emirati or French: French rules are covered in our pages on leaving France.
• Your group size, if you are part of a large group.

The rule depends on your situation. No results are guaranteed.