Aqid ERPThe rates
- 0% on taxable income up to AED 375,000.
- 9% on taxable income above AED 375,000.
- Qualifying free zone persons can pay 0% on qualifying income, if they meet the conditions; other income is taxed at 9%.
| Taxable income | AED 500,000 |
|---|---|
| First AED 375,000 at 0% | AED 0 |
| Remaining AED 125,000 at 9% | AED 11,250 |
| Corporate tax due | AED 11,250 |
Who must register
Every taxable person registers with the Federal Tax Authority, including free zone companies and those whose profit falls under AED 375,000 or who elect Small Business Relief. Natural persons running a business register once their business turnover passes AED 1 million in a year. Late registration carries a penalty, so register even when no tax is expected.
Small Business Relief
A resident business whose revenue is AED 3 million or less in the tax period, and in each earlier period, can elect to be treated as having no taxable income. It applies to tax periods ending on or before 31 December 2029 (Ministerial Decision 73 of 2023, as extended by Ministerial Decision 131 of 2026). The election is made in the return; the business still registers, files and keeps its records.
Filing and paying
The return and the payment are due within nine months of the end of the tax period: for a calendar-year business, by 30 September of the following year. The return starts from the accounting profit in the financial statements and adjusts it, for example for non-deductible expenses, so clean books are most of the work.
How Aqid ERP helps
A UAE company in Aqid ERP gets an estimate of its corporate tax from the ledger as the year goes, the statement of changes in equity, and a guide to the Small Business Relief election. The figures in the estimate are the ones the return starts from.