UAE Free Zone Corporate Tax Rate Reference 2026 — 0%, 9%, and QFZP Rates Explained
The UAE Corporate Tax system has multiple rates depending on income type, entity status, and QFZP election. Here is the complete 2026 reference guide.
In this guide:
UAE CT Rates Summary
| Entity Type / Income | CT Rate |
|---|---|
| Qualifying Free Zone Person (QFZP) — Qualifying Income | 0% |
| QFZP — Non-Qualifying Income (excluded activities) | 9% |
| Non-QFZP Free Zone Company | 0% up to AED 375,000; 9% above |
| Mainland UAE Company (Small Business Relief) | 0% (if revenue below AED 3 million) |
| Mainland UAE Company (standard) | 0% up to AED 375,000; 9% above |
| Multinational (Pillar Two in-scope: revenue 750M+ EUR) | 15% minimum (Pillar Two rules) |
QFZP — What Qualifies for 0%?
- Qualifying income: Income from transactions with other free zone entities or non-UAE persons
- Eligible activities: Trading, manufacturing, logistics, services — as long as they meet the “qualifying” definition
- Substance: QFZP must maintain adequate substance in UAE (people, assets, activities)
- Excluded activities: UAE mainland retail and certain other activities are NOT qualifying income
AED 375,000 Exemption
- Threshold: All UAE businesses (including non-QFZP free zone companies) pay 0% on first AED 375,000 of taxable income
- Taxable income above AED 375,000: 9% applies on the excess above the threshold (not on total)