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May 15, 2026

This decision specifies the corporate tax rates and income thresholds under Federal Decree-Law No. 47 of 2022. It establishes that a Taxable Person's taxable income not exceeding AED 375,000 in a tax period is subject to a 0% corporate tax rate. Any taxable income exceeding this AED 375,000 threshold is subject to a 9% corporate tax rate. The decision contains an anti-abuse provision under Article 50 of the Corporate Tax Law against the artificial separation of businesses intended to remain within the 0% bracket, assessed by the Federal Tax Authority.

This is not an Official Translation:

Determination of the Amount of Annual Income Subject to Corporate Tax

Cabinet Decision No. 116 of 2022

Issued 30 Dec 2022 – (Effective 1 Feb 2023)

[GTL Notes]

The Cabinet has decided:

Having reviewed the Constitution,
Federal Law No. 1 of 1972 on the Competencies of the Ministries and Powers of the Ministers, and its amendments,
Federal Decree-Law No. 13 of 2016 on the Establishment of the Federal Tax Authority, and its amendments,
Federal Law No. 7 of 2017 on Tax Procedures, and its amendments,
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses,
Cabinet Decision No. 36 of 2017 on the Executive Regulation of Federal Law No. 7 of 2017 on Tax Procedures, and its amendments,
Pursuant to what was presented by the Minister of Finance and approved by the Cabinet,

Article 1 - Definitions

In the application of the provisions of this Decision, the following words and expressions shall have the meanings assigned against each, unless the context otherwise requires:

State	:	United Arab Emirates.
Ministry	:	Ministry of Finance.
Minister	:	Minister of Finance.
Authority	:	Federal Tax Authority.
Person	:	Any natural person or juridical person.
Taxable Person	:	A Person subject to Corporate Tax in the State under the Corporate Tax Law.
Corporate Tax Law	:	Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
Corporate Tax	:	The tax imposed by the Corporate Tax Law on juridical persons and Business income.
Taxable Income	:	The income that is subject to Corporate Tax under the Corporate Tax Law.
Tax Period	:	The period for which a Tax Return is required to be filed.
Tax Return	:	Information filed with the Authority for Corporate Tax purposes according to the forms and procedures as prescribed by the Authority, including any schedule or attachment thereto, including any amendment thereof.
Business	:	Any activity conducted regularly, on an ongoing and independent basis by any Person and in any location, such as industrial, commercial, agricultural, vocational, professional, service or excavation activities or any other activity related to the use of tangible or intangible properties.
Business Activity	:	Any transaction or activity, or series of transactions or series of activities conducted by a Person in the course of its Business.

The Cabinet has decided:

Article 1 - Definitions

Article 2 - Income Subject to Corporate Tax at 0% (Zero Percent)