So, here’s the deal — corporate tax is officially here in the UAE. Yeah, it’s real. And if you’re running a business, or thinking about starting one, you’re probably wondering what it means for you. Let’s break it down — no legal jargon, no boring lectures.
First things first… What even is corporate tax?
Basically, it’s a tax on your company’s profits. The UAE used to be tax-free for most businesses. That was a big reason people loved setting up shop here. But things have changed. Now, if your company earns more than AED 375,000 a year, you’re gonna get taxed.
But don’t panic — it’s not as bad as it sounds.
So… how much do you pay?
The rate is 9%.
Yep, just 9% on profits above AED 375K. Anything below that? You’re safe — no corporate tax. That’s actually pretty low compared to most other countries. Some are hitting 20%, 25%, even 30%.
If you’re making serious money, there’s a chance the rate might be higher — but that’s more for the big boys (like multinational giants).
Who needs to pay this?
If you’ve got a mainland company, yeah — you’re in.
Free zone companies? That’s where it gets a little tricky. Some of them still enjoy zero tax if they meet certain conditions. But you’ve gotta prove you’re doing business outside the UAE and sticking to the rules. So no, not everyone gets a free pass anymore.
Here’s where it gets real…
A lot of small business owners didn’t see this coming. Some never even kept proper records. Now, it’s kind of a wake-up call. You need clean books, financial statements, and yeah… maybe an accountant who knows what they’re doing.
Don’t wait till the deadline’s staring you in the face. Start early. Get your documents sorted. Because once the audit letters start rolling in, there’s no going back.
What about freelancers and solo entrepreneurs?
If you’re a freelancer earning under AED 375K — breathe. You’re probably not affected (yet). But once you start hitting bigger numbers, you’re playing in the same league as registered businesses.
And if you’re making good money through social media, coaching, or selling stuff online? You better check where you stand. Because the authorities are watching.
