FAQs

Companies that are involved in business activities within the UAE and exceed the income of AED 375,000 are subject to corporate tax. This includes both local and foreign-owned companies.

Free zone companies may be eligible for corporate tax exemptions if they meet certain conditions, including generating income solely from outside the UAE or engaging in activities consistent with their free zone regulations.

Yes, corporate tax applies to all sectors unless specific exemptions or incentives are applicable (e.g., for free zone businesses or certain sectors like oil and gas, which may face a different tax regime).

Yes, businesses with taxable income less than AED 375,000 are exempt from corporate tax. This is designed to support small businesses and startups.

Corporate tax is calculated on the company’s taxable income, which is the total income after allowable deductions such as operating expenses, salaries, and other costs directly related to business activities.

Yes, foreign companies that earn income in the UAE are subject to the corporate tax based on the same rules that apply local businesses.