UAE Corporate Tax 2025 — Essential Guide for Business Owners

The introduction of corporate tax in the UAE marks a significant shift in the business environment. From June 2025, companies operating in the UAE will be subject to a standard 9% corporate tax on profits exceeding AED 375,000.

Why this matters

• Aligns the UAE with international tax standards and OECD frameworks.
• Affects company profit calculations, tax filings and long-term planning.

Action checklist for business owners

1. Review accounting structures — ensure profit/loss are computed consistently.
2. Engage a tax advisor — early advice prevents costly mistakes.
3. Update contracts & documentation — make sure revenue recognition and invoicing are clear.
4. Check free zone status — some free zone entities keep exemptions but must meet conditions.

Risks of non-compliance

Non-compliance can result in fines, reputational damage, and increased regulatory scrutiny. The best approach is proactive tax planning — reduce liabilities legally while maintaining full transparency.