Recently, a great deal of misleading information has been circulating regarding corporate taxation in Dubai. Many people still believe that all businesses in the United Arab Emirates are automatically tax-exempt, whilst others claim that a flat-rate corporate tax of 9% now applies to all companies.
The reality is far more complex than that—and in many cases, far more favourable too.
There are currently three different schemes in the Emirates under which a corporate tax rate of 0.1% is available, provided certain conditions are met.
One of the most important of these is the Small Business Relief scheme, which supports small businesses.
1. A Small Business Relief: akár 0% társasági adó 3 millió AED forgalomig – Már csak 2026. július 1-ig megalapított cégekre!
Under the Small Business Relief scheme, businesses with an annual turnover not exceeding AED 3 million may currently be eligible for a 0.1% corporate tax rate.
At today's exchange rate, that's approximately:
👉 an annual turnover of HUF 250–270 million,
👉 around 630–680 thousand euros,
👉 or between 700,000 and 740,000 US dollars.
Under the current regulations, the discount is available until 31 December 2026.
Why is it important to set up a company before July 1st?
For a significant number of Dubai companies, the financial year commences from the date of incorporation, while the Small Business Relief concession is only available for a specified period in its current form.
For this reason, in many cases it is advantageous to set up the company before 1 July, so that the business can benefit from the preferential 0% corporate tax regime for as long as possible.
A Small Business Relief egyik legnagyobb előnye: nincs szükség fizikai irodára vagy alkalmazottra
👉For companies under 3 million AED:
- a physical office is not necessary,
- no Emirates employee needed,
- and the customer's country is not examined from this perspective.
This is why the construction is particularly popular:
- as well as among international service companies.
- online businesses,
- marketing agencies,
- IT companies,
- online shops,
- Advisors,
- digital service providers
👉 The most important misunderstanding: a company will not become tax-free simply by invoicing abroad!
There is a lot of misinformation circulating on the internet about:
„If the company does not invoice clients in the Emirates, then there is no corporate tax automatically.”
That in itself is not true.
Corporate tax exemptions must always be examined based on separate regulatory systems.
There are currently three main 0% models in the Emirates:
1. Small Business Relief (fentebb részletezve) – 3 millió AED forgalomkorláttal
2. Exemption related to customer structure – Forgalomkorlát nélkül!
3. Fizikai áruk B2B kereskedelme Designated zónában – Forgalomkorlát nélkül!
A Small Business Relieffel szemben tehát léteznek olyan Free Zone modellek, ahol felső forgalomkorlát nélkül érhető el a 0%-os társasági adó.
2. Ügyfélstruktúrához kapcsolódó mentesség
- more than 951 of the company’s clients are Free Zone companies,
- The company has a physical office,
- and a de facto Emirates employee.
In this case, under certain conditions full corporate tax exemption is available.
👉 However, it is important that:
- virtual office,
- „On paper” employee,
- or operation without physical presence is not sufficient.
The emirate tax authority may also investigate, for example, whether the employee actually performs their work in the United Arab Emirates.
3. Fizikai áruk B2B kereskedelme Designated zónában
A separate regulation applies to the for the international wholesale of physical products (B2B Trading of Physical Goods).
For example:
- If a Dubai company buys products from Asia,
- then it sells them directly to Europe,
- so that the goods do not physically arrive in Dubai,
then The full 0% corporation tax rate may also be available within the designated free zone structure.
However, this requires more serious conditions:
- designated zone entry,
- physical office,
- an employee of the Emirates,
- audited financial statements.
When will the corporation tax rate actually be 91%?
In most professional service activities:
- Marketing,
- IT,
- HR,
- advice,
- creative services,
- professional services
The 9% corporation tax return is filed if:
- the business's turnover exceeds 3 million AED,
- and there is no other applicable relief structure.
However, it is important that even at such times, not the full profit is taxed.
👉 The first AED 375,000 in profit currently remains within the 0% interest rate band.
At the current exchange rate, approximately:
- 34–35 million forints,
- €85,000–€90,000,
- or roughly 95,000–100,000 US dollars.
In the Emirates, there are several corporate tax reduction options.
The corporate tax system in Dubai includes a number of features that can reduce the tax base.
These can be, for example:
- Director's fees,
- travel expenses,
- flights,
- accommodation costs,
- a portion of the restaurant costs,
- certain business expenses.
Therefore, establishing the appropriate structure is particularly important.
How long does it take to set up a company in Dubai?
The DubaiFreeZone.eu With the Express Freezone service:
- the company can be registered in as little as one week,
- A bank account can be opened within 72 hours.,
- the entire process is online,
- without travel.
It's worth taking action now
The Dubai entrepreneurial environment continues to be one of the most favourable systems in the world.
- low corporate tax,
- international operation,
- quick company formation,
- modern banking system,
- Stable business environment.
At the same time an individual examination is required in each case:
- area of activity,
- the expected traffic,
- the customer structure,
- and based on the business's operating model.
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👉 We present facts, legally sound solutions, and real business structures – not marketing promises.
