With the introduction of Corporate Income Tax in UAE, 2025 marks a significant shift in the way businesses operate and manage their finances in Dubai. Whether you run a mainland business, a free zone company, or a multinational entity, understanding the updated tax regulations is critical to ensure compliance and avoid penalties.
This guide will help you navigate the essentials of company tax in Dubai for 2025, including tax rates, exemptions, filing procedures, and important deadlines.
What is Corporate Income Tax in UAE?
Corporate Income Tax in UAE, also referred to as company tax, is a direct tax imposed on the net income or profit of businesses. The UAE introduced this tax to align with international tax standards and increase transparency in financial reporting.
The Federal Decree-Law No. 47 of 2022 governs corporate income tax across the UAE, including Dubai.
Who Needs to Pay Corporate Income Tax in UAE (2025)?
Corporate income tax is applicable to:
• Mainland companies operating in Dubai
• Free zone entities (subject to specific conditions)
• Foreign companies with permanent establishments in the UAE
• Branches of international companies in Dubai
Corporate Income Tax Rates in Dubai – 2025
As of 2025, the applicable corporate income tax rates in Dubai are:
| Taxable Income | Corporate Tax Rate |
| AED 0 to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
| Qualifying Free Zone Income | 0% (conditions apply) |
Free zone companies must meet specific criteria (like maintaining adequate substance and complying with transfer pricing rules) to benefit from the 0% tax rate.
How to Register for Corporate Income Tax in UAE
All businesses subject to corporate income tax must register through the Federal Tax Authority (FTA) portal. Steps include:
- Create an account on the FTA e-services portal.
- Submit company trade license and Emirates ID documents.
- Provide financial records and business activity details.
- Receive a Tax Registration Number (TRN).
Deadline to register: Businesses must register before their first tax return is due. Avoid last-minute delays and penalties by registering early.
Corporate Income Tax Filing Deadlines in 2025
• Tax Period: Financial years beginning on or after June 1, 2023
• Filing Deadline: Within 9 months from the end of the relevant financial year
Example:
If your company’s financial year ends on December 31, 2024, your first corporate income tax return must be filed by September 30, 2025.
Exemptions and Reliefs
Some entities are exempt from corporate income tax in Dubai:
• Government entities
• Government-controlled entities
• Extractive businesses (oil, gas)
• Non-resident persons without a permanent establishment
• Certain qualifying investment funds and pension funds
Free Zone Businesses: Special Considerations
Free zone entities can benefit from a 0% corporate income tax on qualifying income, but they must:
• Maintain adequate substance in the UAE
• Not elect to be subject to standard 9% tax
• Transact only with businesses outside the UAE or within the same free zone
• Comply with transfer pricing documentation requirements
Failure to meet these conditions may result in losing the 0% benefit and being taxed at 9%.
Corporate Income Tax Compliance Tips for 2025
- Keep updated financial records — hire a registered tax agent or accounting firm.
- Understand transfer pricing rules if you’re part of a group or deal with related entities.
- Review contracts and pricing strategies to optimize tax liabilities.
- Monitor your tax obligations monthly, not just at year-end.
Conclusion
Dubai’s move to introduce corporate income tax in 2025 reflects the UAE’s commitment to aligning with global tax practices. While the system is relatively business-friendly with its low 9% rate, it’s vital for companies to stay compliant, register on time, and understand the rules based on their entity type (mainland vs. free zone).
By being proactive and well-informed, your business can avoid penalties and build a strong financial structure under the new tax regime.
Need Help With Corporate Income Tax in UAE?
If you’re unsure about your company’s tax obligations or need help with registration and filing, consult a licensed corporate income tax consultant in UAE or reach out to a financial advisory firm in Dubai for assistance.