The United Arab Emirates (UAE) maintains one of the world’s most competitive corporate tax frameworks, reinforcing its reputation as a premier location for international business and asset protection. Below is a detailed overview of the UAE’s corporate tax regime for companies in 2025, with key rates, thresholds, and important supplementary provisions.
Corporate Tax Structure in the UAE for 2025
The UAE corporate tax system is progressive and aligns with international standards while maintaining low-tax advantages for most domestic businesses. The assessment is based on corporate income, with rates and brackets outlined clearly by the authorities.
Corporate Tax Brackets (2025)
| Taxable Income (AED) | Rate (%) |
|---|---|
| 0 – 375,000 (≈ $0 – $102,090, USD 1 = AED 3.675) | 0% |
| > 375,000 (>$102,090) | 9% |
For taxable income up to AED 375,000 (approximately $102,090 USD), companies enjoy a 0% tax rate, which is particularly advantageous for smaller and new businesses starting their operations in the UAE.
Income above this threshold is taxed at a flat rate of 9%. The official figures for any special rates or exemptions have not been disclosed beyond these brackets.
Surtaxes and Special Regimes (2025)
While the core corporate tax rates remain low, specific surtaxes may apply to certain enterprise profiles and sectors. These provisions are especially relevant for multinational enterprises (MNEs) and businesses in the natural resources sector.
| Type | Rate (%) | Applicability & Conditions |
|---|---|---|
| Domestic Minimum Top-up Tax (DMTT) | 15% | Applies to MNEs with consolidated global revenues of EUR 750 million or more (approx. $816 million, USD 1 = EUR 0.92) in at least two out of four financial years immediately preceding the financial year in which DMTT applies. Effective for financial years starting on or after 1 January 2025. |
| Sharjah Emirate Resource Tax | 20% | Applies to companies operating in extractive and non-extractive natural resource activities at the Sharjah emirate level. |
It is important for international entities and companies involved in natural resources to review these provisions, as the applicable rates may differ significantly from the general corporate tax structure.
Assessment Basis and Other Considerations
The UAE uses a corporate assessment basis, meaning that corporate income is taxed at the entity level rather than passing through to individual shareholders. There are no disclosed minimum or maximum holding periods that affect corporate tax liabilities as of 2025.
For businesses or groups with complex operations or significant foreign revenue, nuanced exceptions and supplementations like the DMTT will be especially relevant starting in 2025.
Summary Table: UAE Corporate Tax Regime (2025)
| Description | Detail |
|---|---|
| Currency | AED (United Arab Emirates Dirham) |
| Tax System | Progressive (corporate assessment) |
| Standard Corporate Tax Rate | 9% (on income above AED 375,000 / $102,090 USD) |
| Income Tax-Free Threshold | Up to AED 375,000 / $102,090 USD |
| DMTT Surtax | 15% (for qualifying multinational enterprises) |
| Sharjah Resource Tax | 20% (extractive and non-extractive resource activities) |
| Holding Period | Not specified |
Pro Tips for Managing UAE Corporate Tax in 2025
- Stay updated on the newest federal tax announcements, especially regarding the DMTT introduction for multinational enterprises; this is a significant change for large groups operating across borders.
- Leverage the 0% tax threshold on income up to AED 375,000 to optimize start-up and small business tax positions in the UAE.
- Carefully evaluate operations within the Sharjah Emirate, especially for companies dealing with natural resources, since the regional tax rate is substantially higher.
- Monitor regulations for multinational enterprises and consult local advisors for transactions that may trigger DMTT obligations based on global revenues.
- Refer to the UAE Ministry of Finance for official changes or detailed regulator guidance on the evolving corporate tax regime.
In summary, the UAE continues to offer a highly attractive corporate tax environment with a 0% tax rate on moderate income and a low 9% standard rate for most domestic operations. Multinational enterprises and companies in the Sharjah natural resources sector should pay close attention to new supplementary taxes from 2025 onwards. As always, verifying your company’s specific profile against current law and keeping up-to-date with Ministry of Finance releases remains essential for compliance and tax optimization planning.