The perception of Dubai as an entirely tax-free haven for businesses has seen significant evolution. While the emirate retains many attractive fiscal policies, the landscape for business setup in Dubai in 2026 is no longer one of absolute zero taxation across the board. Recent legislative changes, particularly the introduction of Corporate Tax, mean that entrepreneurs and companies must now approach their business setup with a nuanced understanding of the prevailing tax regime. It is crucial to examine the specifics to accurately determine the financial implications for operations in the coming years.

Key Takeaways

• Dubai is no longer entirely ‘tax-free’ due to the introduction of a federal Corporate Tax.
• A 9% Corporate Tax rate applies to mainland businesses with taxable profits exceeding AED 375,000.
• Free Zones offer significant tax advantages, including a 0% Corporate Tax rate on qualifying income for eligible businesses.
• A 5% Value Added Tax (VAT) is applicable to