A federal corporate tax rate of 9% is applicable on entities operating in UAE with annual taxable profits of more than AED 375,000.0. If the profits are less than this number, then the corporate tax rate is 0%. But some businesses are exempt from this tax. These exemptions apply to the following:
Salaries and investment incomes of individuals are exempt from the corporate taxation system. If the individual’s income-generating activity does not require a commercial license, they are exempt.
Entities involved in the business of natural resource extraction because they are subject to Emirate-level taxes.
Businesses registered in the free trade zones if they comply with the respective zone’s regulatory requirements and do not conduct business with the mainland UAE.