Taxation
Corporate tax and filing
Dubai's tax-free reputation is outdated for companies, even if it still holds for personal income. Corporate tax is real, recent, and worth planning for from day one rather than discovering at filing time.
What most companies need to track
- Annual corporate tax registration, regardless of whether tax is ultimately owed.
- Maintaining financial records to the standard required for tax filing, from the first year of operation.
- For free zone companies: understanding whether your specific income qualifies for the preferential rate, since this depends on activity and counterparty, not just zone membership.
- VAT registration, once turnover crosses the relevant threshold — a separate obligation from corporate tax.
Does Dubai have corporate tax?
Yes. The UAE introduced federal corporate tax on business profits, generally applying above a set annual profit threshold, with a preferential or zero rate for profits below it. Free zone companies can, in many cases, retain a 0% rate on qualifying income if they meet specific substance and activity conditions — this is not automatic.
Is Dubai still tax-free?
There is still no personal income tax in the UAE. Corporate tax on business profits is a separate, more recent regime, and 'Dubai has no tax' is no longer an accurate blanket statement for companies above the threshold.