Corporate Tax in the UAE: What Every Woman Entrepreneur Needs to Know

 As a woman entrepreneur running or planning to run a business in the UAE, understanding corporate tax is no longer optional — it’s essential. The era of 0% corporate taxation for all is evolving, and with change comes both challenge and opportunity.

This guide is tailored to you: to help you understand who must register, how much tax might apply, what reliefs exist (including for small businesses), and what practical steps you can take — especially within a women-led business context.

1. What Is UAE Corporate Tax? (Quick Overview)

• The UAE introduced a federal corporate tax regime for businesses (decree‑law) under the oversight of the Federal Tax Authority (FTA).

• The tax is levied on Taxable Income (profits) of companies or entities that qualify as Taxable Persons under the law.

• A key feature: a 0% rate applies up to a certain profit threshold, and a 9% rate for profits above it (for normal businesses).

• Some entities — like those in qualifying Free Zones (on “qualifying income”) — may enjoy different treatment under specific rules.

• The concept of Small Business Relief was introduced to ease compliance for smaller enterprises. (FTA UAE)

2. Who Has to Register for Corporate Tax?

To know whether your company must register, consider:

a) Persons / Entities Covered

• Juridical persons (companies, LLCs, PSCs) that are incorporated or established under UAE law are generally Resident Persons for corporate tax purposes. (FTA UAE)

• Foreign entities that are effectively managed or controlled from the UAE, or that have a Permanent Establishment (PE) in the UAE, may also be subject to registration and tax.

• Natural persons (individuals) operating a business or business activity may also be subject to corporate tax if their turnover exceeds AED 1,000,000 in a calendar year for business-related income (excluding salary, real estate investment income, and personal investments). (FTA UAE)

b) Which License Types Are Affected

• All licensed businesses, whether free zone or mainland, that generate business revenue (whether services, trade, or other commercial activity) generally fall under the scope.

• Even if you expect to qualify for Small Business Relief, registration is still mandatory. (FTA UAE)

  And if you’re figuring out how to set up your business in the first place — especially for service offerings — read our article How to Start a Service-Based Business UAE for steps on licensing, service structuring, and getting started.”

• Note: Qualifying Free Zone Persons that derive “qualifying income” may already benefit from 0% corporate tax for that portion, but they may still need to comply with registration or filing obligations. 

If you hold a business license in any jurisdiction in the UAE and have business activity or revenue, assume you must register unless an official exemption applies — always verify with the FTA or a tax advisor.

3. Corporate Tax Rates, Thresholds, and How the Tax Is Applied

a) Rates & Profit Bands

• 0% rate generally applies to the first AED 375,000 of Taxable Income.

• 9% rate applies to profits above that threshold.

b) Small Business Relief (SBR) — Key Relief for Smaller Women-Led Businesses

To ease entry, the FTA introduced Small Business Relief for qualifying businesses. (FTA UAE)

How it works:

• If your Revenue in a Tax Period and in all previous periods is ≤ AED 3,000,000, you may elect SBR. (FTA UAE)

• Elections are made on the Corporate Tax Return for that tax period. 

• If SBR is chosen:

  • Your business is treated as having no taxable income for that period (so no corporate tax is due). (FTA UAE)

  • You can file a simplified tax return — fewer details required, and record-keeping is somewhat simplified. (FTA UAE)

  • Certain tax rules like transfer pricing documentation, interest deduction limitations, carrying forward tax losses will not apply in relief years. (FTA UAE)

Important caveats:

• Even under SBR, you must still register for corporate tax. (FTA UAE)

• You must elect each tax period — it does not automatically carry forward. (FTA UAE)

• If you exceed AED 3,000,000 revenue in any prior or current period, you lose eligibility for SBR even if revenue drops later. (FTA UAE)

• SBR is not available for Qualifying Free Zone Persons, members of large multinational enterprise groups (MNEs), or in cases of artificially splitting activities to fall under thresholds. (FTA UAE)

4. Practical Steps for Women Entrepreneurs: Registration, Filing & Compliance

Here’s how you can move from theory to practice:

Step A: Register with the FTA (Get a TRN)

• Even if you are eligible for SBR, registration is mandatory. 

• Deadline: as per FTA guidelines (check decision timelines such as Decision No. 3 of 2024) 

Step B: Keep Your Financial Records Meticulously

• Maintain invoices, receipts, bank statements, order records, delivery notes, contracts, etc., for at least 7 years. (FTA UAE)

• Even under SBR, these records will be requested by FTA if audit or verification occurs. 

Step C: Elect SBR in Your Tax Return (If Eligible)

• Indicate in your return that you wish to claim Small Business Relief.

• Submit simplified tax return if relief elected.

• Note: once the election is made, you cannot later claim it for that period if you forget. (FTA UAE)

Step D: File the Corporate Tax Return

• For businesses not electing SBR (or in future years when exceeding thresholds), a full tax return must be filed within 9 months after the end of the tax period. 

• If you had a PE or transactions with related parties, transfer pricing disclosure may be required. 

Step E: Monitor Ongoing Eligibility & Revenue

• Continuously track your annual revenue. If you cross thresholds, you may lose relief in future years.

• Avoid artificially splitting your business to fall under thresholds — FTA has anti‑abuse rules and may penalize such structures. 

  Need help streamlining your processes? Explore our guide on 10 Essential Business Systems for Women Entrepreneurs in the UAE for practical tools to simplify operations.” Click here 

5. What This Means For You as a Woman Entrepreneur

• Flexibility & breathing room: Small Business Relief gives you time to grow without immediate tax burden.

• Less administrative load: Simplified returns means less complexity, freeing you to focus on business.

• Smarter growth decisions: Knowing when you will cross revenue thresholds helps you plan hiring, investments, and scaling.

• Credibility boost: Being fully tax compliant (registered, filing returns) enhances trust with clients, partners, and investors.

• Caution required: Don’t rely on SBR as a permanent shelter — plan for years you exceed limits.

6. Summary Table: Key Corporate Tax Points Every Woman Entrepreneur Should Know

7. Next Steps & Resources for Action

1. Check if your business is already registered (FTA portal)

2. Estimate your revenue vs thresholds today and for past years

3. Set up or audit your bookkeeping system

4. Seek professional advice — especially when crossing into full tax obligations

5. Join support networks (like Homepreneurs Club) to stay updated, ask questions, and get referrals to trusted tax professionals

📌 Also, check out the official FTA pages:

• FTA small business relief overview (FTA UAE)

• FTA corporate tax guide and small business relief PDF (FTA UAE)

  Disclaimer:

  This blog is published on September 25, 2025. Tax rules and regulations may change. Always consult with a tax professional or refer to the FTA official website for the latest updates.