Is Corporate Tax the same as VAT?

No — VAT (5%) is on transactions; CT (9%) is on annual taxable profit.

Do I need a Tax Agent?

Not mandatory — but strongly recommended for QFZP, tax groups and complex adjustments.

How is taxable income calculated?

Start with IFRS accounting profit, apply CT adjustments (non-deductibles, exempt income, reliefs).

Are dividends taxable?

Domestic dividends are generally exempt; foreign dividends may qualify for participation exemption (≥5% shareholding, ≥12 months, ≥9% underlying tax).

Are salaries taxable?

No personal income tax in the UAE — salaries are fully deductible for the employer.

What if my licence was issued mid-year?

Your first tax period runs from licence issuance to the next year-end (min 6 months, max 18 months).

Do I pay CT in instalments?

No — CT is paid in a single tranche with the annual return.

What if I have losses?

Losses can be carried forward indefinitely and used to offset up to 75% of taxable income each year.

Corporate Tax

UAE Corporate Tax FAQs (Updated 2026)

The 25+ most common UAE Corporate Tax questions from business owners in 2026 — answered by Tax Experts.

TETax Easy UAE Editorial· Reviewed by CA Mayank GuptaUpdated 21 May 2026 10 min read FTA-aligned

The most-asked UAE Corporate Tax questions we hear on WhatsApp every week — clean answers, no jargon.

Rates & thresholds

0% up to AED 375,000; 9% above
0% qualifying income for QFZPs
15% DMTT for MNEs > €750M from 2025
SBR: no tax up to AED 3M revenue till 31 Dec 2026

Filing & payment

Return due 9 months after year-end
Payment via EmaraTax GIBAN
Voluntary Disclosure to correct errors
Records kept for 7 years (15 for real estate)

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Frequently asked questions

Quick answers to common UAE corporate tax questions.

This article is for general guidance only and reflects FTA rules as of May 2026. Always confirm your specific position with a qualified UAE tax advisor.