Who is Exempt from Corporate Tax in the UAE?
The UAE introduced a federal corporate tax regime in 2023, applying a 9% tax on business profits exceeding AED 375,000, with significant updates in 2025 including a 15% Domestic Minimum Top-Up Tax for large multinationals. Despite this, several corporate tax exempt entities in the UAE remain, under specific conditions, preserving the UAE’s business-friendly environment while aligning with global tax standards. Who Is Exempt from Corporate Tax in the UAE in 2025? Small Businesses Below the Profit Threshold Businesses and individuals with annual taxable profits below AED 375,000 are fully exempt from corporate tax. This exemption supports startups and SMEs by…