UAE Corporate Tax 2026: Everything You Need to Know

As of 2026, the UAE Corporate Tax law is in full effect. This guide breaks down exactly what Mainland and Free Zone companies need to do to stay compliant.

Key Highlights for 2026

  • • Standard Rate: 9% on profits over AED 375,000.
  • • Small Business Relief: 0% tax if revenue < AED 3M.
  • • Registration: Mandatory for ALL license holders.

1. Who Needs to Pay?

Every business entity in the UAE, whether Mainland or Free Zone, must register for Corporate Tax. However, paying the tax depends on your income threshold and status.

2. Understanding Small Business Relief (SBR)

If your revenue is below AED 3,000,000 in the relevant tax period and previous periods ending on or after Dec 31, 2023, you can elect for SBR. This treats you as having no taxable income.

3. Free Zone Persons

Free Zone persons can benefit from 0% CIT on "Qualifying Income". Income from mainland sources or excluded activities is taxed at 9%.

Unsure about your status?

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