For many Romanian entrepreneurs, the expression “Dubai profit tax”It sounds almost paradoxical. The UAE has for decades been synonymous with a friendly tax environment without direct taxes. However, starting in 2023, a corporate income tax, also known as Dubai corporate tax, was introduced for the first time.
Even so, the system remains one of the most advantageous in the world—for most firms, corporate tax in Dubai remains effectively 0%, especially for those registered in Free Zones and operating internationally.
Whats corporate taxin Dubai
Corporate tax Dubai is a federal tax introduced by the government of the Emirates to bring the country into line with international economic standards. However, the way it is applied is highly selective and favorable to the business environment.
Here are the main features:
• 0% Dubai Profit Taxfor income up to AED 375,000/year (approx. 90,000 euros).
• 9% taxonly for the part that exceeds this threshold.
•It applies only to companies operating in the domestic market (Mainland).
Therefore, a firm with exclusively international activity — consulting, ecommerce, digital services — continues to benefit from full Dubai profit tax exemption.
Tax threshold— 375,000 AED
For clarity, the tax system is structured very simply:
•Profit under 375,000 AED→ Totally exempt from tax.
•Profit over 375,000 AED→ charged 9% only on the difference.
Example: if a firm makes a profit of AED 500,000, the tax is only applied on AED 125,000 — that is approximately AED 11,250.
This model allows Dubai to remain competitive and predictable, unlike tax systems in Europe, where taxation affects profits entirely.
Who is exempt from corporate tax in Dubai
Most companies are still exempt from corporate tax. The most important categories are:
• Companies in the Free Zone— as long as it does not operate on the local market, the profit is non-taxable.
• HoldingsEntities that only hold stakes in other firms, without direct commercial activity, do not owe corporate tax in Dubai.
• Companies with international activity— exports, digital services, global consulting → 0% corporate tax.
• Government and non-profit entities— completely exempt by law.
Free Zones such as IFZA, DMCC, Meydan Free Zone or Dubai CommerCity further confirm the status of zones with 0% Dubai profit tax for internationally oriented companies.
Dubai Profit Tax - How to Calculate
The calculation is simple and transparent.
Taxable profit = total income — deductible expenses (wages, rent, services, marketing).
Only the remaining net profit above AED 375,000 is charged 9%.
In addition:
•Losses can be carried over and deducted in subsequent years.
•There is no tax on dividends.
•No additional fees apply to personal withdrawals of shareholders.
For small firms or growing startups, the AED 375,000 threshold offers real tax protection, encouraging profit reinvestment.
Dubai Profit Tax for Free Zone vs Mainland Firms
The main difference is where you work:
•In Zona Gratuito, the tax remains 0%, as long as the income comes from outside the Emirates.
•In Mainland, the tax is applied for activities carried out locally at the rate of 9%.
Basically, a consulting, IT or ecommerce firm that sells to clients in the EU, US or Asia, but is registered in a Free Zone, pays 0% Dubai profit tax.
On the other hand, a local distribution or retail company that sells in the Emirates enters the taxable zone.
Practical examples for Romanian entrepreneurs
1. International consulting firm:
A Romanian entrepreneur with a company in IFZA Free Zone invoices services to clients in Germany and France. Since the income comes from outside the UAE, Dubai profit tax = 0%.
2. Global online store:
A Dubai-registered ecommerce firm CommerCity sells products in the EU and the US. It does not have local stocks and does not operate in the domestic market Total exemption from corporate tax.
3. IT company with global contracts:
A team of Romanian programmers who deliver international software through a company in DMCC benefits from 0% Dubai Profit Taxand access to double taxation avoidance treaties.
The tax benefits remain huge
Even after the introduction of corporate income tax, Dubai continues to offer:
• 0% tax on dividends and capital gains;
• 0% tax on exports and international services;
• 0% personal income taxes;
• Double Taxation Avoidance Treaties with more than 100 countries, including Romania.
For Romanian entrepreneurs who want to move their profit center, Dubai remains the most effective global tax solution.
Although the UAE has officially introduced corporate tax, the tax regime continues to be among the most advantageous in the world.
For properly registered firms, with international activity or in the Free Zone, Dubai profit tax = 0%. Only companies that operate locally may be subject to the 9% tax.
If you want to find out exactly how corporate tax is applied in Dubai according to your type of business and what structure keeps you in the 0% zone, contact the team Dubai Business Arena.
We offer personalized tax advice for Romanian entrepreneurs who want stability, protection and international growth.
