The UAE corporate tax rate is 9%. This applies to all businesses in the UAE. However, there are a few exemptions, and more exemptions might be declared when the new corporate income tax regime finally takes effect. For instance, the 0% income tax rate will remain applicable to businesses whose taxable income is less than or equal to AED 375,000. A different tax rate will also apply to large multinational companies that satisfy criteria. Finally, emirate-level taxation will remain for businesses involved in extracting natural resources.
The 9% corporate tax in Dubai and the rest of the UAE emirates remains one of the lowest corporate tax rates globally. According to data from the Tax Foundation, the UAE corporate tax rate is the same as Montenegro and Hungary and just a bit higher than the rate in Turkmenistan (8%), Uzbekistan (7.5%) and Barbados (5.5%). It is also lower than most economies at the low end of the global corporate tax spectrum. The countries with 10% corporate tax include Andorra, Bulgaria, the Republic of Kosovo, Bosnia and Herzegovina, Kyrgyzstan, Paraguay, Qatar, and Timor-Leste.