United Arab Emirates vs United States
Corporate Tax Comparison
Time of Update: United Arab Emirates: 4/01/2026 / United States: 4/04/2026
Compare United Arab Emirates and United States corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
United Arab Emirates vs United States Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
United Arab Emirates
United States
General CIT Rate:
The standard corporate income tax rate in the UAE is set at 9% on taxable income above AED 375,000.
The corporate income tax rate is set at 0% for taxable income not exceeding 375,000 UAE dirham (AED) or qualifying income of a Qualifying Free Zone Person (QFZP).*
The corporate income tax rate is set at 0% for taxable income not exceeding 375,000 UAE dirham (AED) or qualifying income of a Qualifying Free Zone Person (QFZP).*
General CIT Rate:
Federal corporate income tax: 21%. State CIT ranges from 1% to 10% (although some states do not impose CIT) and is deductible from the federal CIT.
CIT Return Due Date:
According to the UAE CT law, all taxable persons must submit the company tax return within nine months after the end of the relevant tax period.
CIT Return Due Date:
1. April 15th (Federal income tax);
2. Income tax is usually due on the same date as federal income tax, but there are a few cases where the dates are different.
2. Income tax is usually due on the same date as federal income tax, but there are a few cases where the dates are different.
CIT Payment Due Date:
According to the UAE CT law, all taxable persons must pay corporate tax within nine months after the end of the relevant tax period.
CIT Payment Due Date:
As of the 15th day of the 12th month of the tax year.
CIT Estimated Payment Due Date:
According to the UAE CT law, there is no need to estimate/prepay taxes.
CIT Estimated Payment Due Date:
Throughout the year, four equal instalments of estimated tax should be paid on the 15th day of the fourth, sixth, and ninth months of the tax year, and on the 15th day of the first month of the following year (April 15, June 15, September 15, and January 15).
Withholding Tax (WHT)
United Arab Emirates
United States
Resident Withholding Tax (Dividend/Interest/Royalty):
0%
Resident Withholding Tax (Dividend/Interest/Royalty):
0/10/3
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0%
None-Resident Withholding Tax (Dividend/Interest/Royalty):
30/30/30
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
United Arab Emirates
United States
General Capital Gain Tax Rate:
Individuals: Generally, there is no personal capital gains tax, as the UAE does not levy personal income tax.
Companies: Capital gains are generally treated under corporate tax rules and typically fall within the scope of corporate tax, unless special rules such as the participation exemption or QFZP (Qualifying Free Zone Person) apply.
Companies: Capital gains are generally treated under corporate tax rules and typically fall within the scope of corporate tax, unless special rules such as the participation exemption or QFZP (Qualifying Free Zone Person) apply.
General Capital Gain Tax Rate:
21% (aligned with the federal CIT rate for corporations)
Effective Tax Rate (ETR)
United Arab Emirates
United States
Composite Effective Average Tax Rate:
Composite Effective Average Tax Rate:
22.69
Composite Effective Marginal Tax Rate:
Composite Effective Marginal Tax Rate:
7.03
