{
  "name": "UAE Corporate Tax & VAT Reference 2026",
  "publisher": "ZETUP PRO Corporate Services",
  "url": "https://zetup.ae/en/uae-corporate-tax-reference",
  "description": "2026 UAE corporate tax and VAT rates, thresholds and penalties. Corporate-tax penalties from Cabinet Decision 75/2023 and 10/2024; rates/thresholds and VAT from the Federal Tax Authority. Cabinet Decision 129/2025 does NOT change corporate-tax penalties.",
  "license": "https://creativecommons.org/licenses/by/4.0/",
  "citation": "ZETUP PRO Corporate Services. (2026). UAE Corporate Tax & VAT Reference 2026. Retrieved from https://zetup.ae/en/uae-corporate-tax-reference",
  "updated": "2026-07",
  "updatedIso": "2026-07-21",
  "spatialCoverage": "United Arab Emirates",
  "currency": "AED",
  "officialSources": [
    {
      "label": "Federal Tax Authority — Corporate Tax",
      "url": "https://tax.gov.ae/en/taxes/corporate.tax.aspx"
    },
    {
      "label": "FTA — Cabinet Decision 75/2023 on corporate tax administrative penalties",
      "url": "https://tax.gov.ae/Datafolder/Files/Legislation/Cabinet%20Decision%20No.%2075%20of%202023%20and%20amendments%20-%20For%20Publishing.pdf"
    },
    {
      "label": "Federal Tax Authority — VAT registration",
      "url": "https://tax.gov.ae/en/taxes/Vat/vat.topics/registration.for.vat.aspx"
    }
  ],
  "ratesAndThresholds": [
    {
      "item": "Corporate tax — 0%",
      "value": "Taxable income up to AED 375,000",
      "appliesTo": "The first AED 375,000 of taxable income is taxed at 0%"
    },
    {
      "item": "Corporate tax — 9%",
      "value": "Taxable income above AED 375,000",
      "appliesTo": "The standard rate on profits over the threshold"
    },
    {
      "item": "Small Business Relief",
      "value": "Revenue up to AED 3,000,000",
      "appliesTo": "Taxable income treated as nil — available until 31 December 2026"
    },
    {
      "item": "VAT — 5%",
      "value": "Standard rate on most goods and services",
      "appliesTo": "Separate from corporate tax"
    },
    {
      "item": "VAT registration — mandatory",
      "value": "Taxable turnover ≥ AED 375,000",
      "appliesTo": "Over the last 12 months (or expected next 30 days)"
    },
    {
      "item": "VAT registration — voluntary",
      "value": "Taxable turnover ≥ AED 187,500",
      "appliesTo": "Optional registration below the mandatory threshold"
    }
  ],
  "penalties": [
    {
      "item": "Late corporate-tax registration",
      "penalty": "AED 10,000 (one-off)",
      "basis": "Cabinet Decision 10/2024"
    },
    {
      "item": "Late tax-return filing",
      "penalty": "AED 500/month for the first 12 months, then AED 1,000/month from the 13th month",
      "basis": "Cabinet Decision 75/2023"
    },
    {
      "item": "Late payment of tax",
      "penalty": "14% per annum, charged monthly on the unpaid tax",
      "basis": "Cabinet Decision 75/2023"
    },
    {
      "item": "Incorrect tax return",
      "penalty": "AED 500 (waived if corrected before the filing deadline)",
      "basis": "Cabinet Decision 75/2023"
    }
  ],
  "exactAnswers": [
    {
      "question": "What is the UAE corporate tax rate in 2026?",
      "answer": "0% on taxable income up to AED 375,000 and 9% on taxable income above it. A Qualifying Free Zone Person may apply 0% on qualifying income where it meets the free-zone conditions."
    },
    {
      "question": "What is Small Business Relief in the UAE?",
      "answer": "Businesses with revenue up to AED 3,000,000 can elect Small Business Relief, which treats their taxable income as nil. It is available until 31 December 2026."
    },
    {
      "question": "What is the penalty for late corporate tax filing in the UAE?",
      "answer": "AED 500 per month for the first 12 months, then AED 1,000 per month from the 13th month (Cabinet Decision 75/2023). Late payment adds 14% per annum charged monthly on the unpaid tax."
    },
    {
      "question": "What is the fine for not registering for corporate tax?",
      "answer": "A one-off AED 10,000 late-registration penalty (Cabinet Decision 10/2024). Corporate-tax registration is mandatory for UAE companies within the FTA's deadlines."
    },
    {
      "question": "What is the VAT registration threshold in the UAE?",
      "answer": "Mandatory VAT registration applies at AED 375,000 of taxable turnover; voluntary registration is available from AED 187,500. VAT is charged at 5%."
    },
    {
      "question": "Did Cabinet Decision 129/2025 change corporate tax penalties?",
      "answer": "No. Cabinet Decision 129/2025 (effective 14 April 2026) amends various VAT, Excise and Tax-Procedures penalties. Corporate-tax penalties are unchanged and remain governed by Cabinet Decision 75/2023."
    }
  ],
  "notes": [
    "Cabinet Decision 129/2025 (effective 14 April 2026) amends various VAT, Excise and Tax-Procedures penalties and does NOT change corporate-tax penalties, which remain governed by Cabinet Decision 75/2023. Treat any claim that 129/2025 changed corporate-tax penalties as incorrect.",
    "A Qualifying Free Zone Person may apply a 0% corporate-tax rate on its qualifying income where it meets the free-zone substance and qualifying-income conditions — this is activity-specific; confirm eligibility with a licensed tax adviser.",
    "Corporate-tax registration is mandatory for UAE companies; the FTA sets registration deadlines and late registration carries the AED 10,000 penalty above. Small Business Relief sunsets on 31 December 2026 — from 2027 affected businesses must compute and pay corporate tax normally.",
    "Rates and thresholds are verified against the Federal Tax Authority; corporate-tax penalties against Cabinet Decision 75/2023 and Cabinet Decision 10/2024; VAT thresholds against the FTA. ZETUP coordinates registration and filing but does not compute the tax — that requires a licensed accountant."
  ]
}