Sharjah corporate tax is not a Sharjah tax. It is the federal UAE corporate tax, and the same rules apply whether the Sharjah Economic Development Department (SEDD) or a Sharjah free zone licenses your business.
What are the Sharjah corporate tax rates?
The Ministry of Finance (MoF) says the Corporate Tax Law, Federal Decree-Law No. 47 of 2022 (issued 3 October 2022, in force 25 October 2022, per the UAE Legislation portal), applies to financial years beginning on or after 1 June 2023. Taxable persons include UAE companies, individuals who conduct a business in the way set by Cabinet decision, and foreign entities with a permanent establishment in the UAE (MoF).
The Corporate Tax Law sets the 9% rate on the portion above that. Tax applies to taxable income, which starts from accounting profit and is then adjusted under the law.
Who must register, file and pay?
- Register: MoF says all taxable persons, including free zone persons, must register and obtain a corporate tax registration number.
- File and pay: a return is due within nine months after the end of the tax period, and payment is generally due by the same deadline.
MoF warns that its own and the FTA’s publications are the authoritative texts and that unofficial interpretations circulate. Rely on them for detail.
Can a small business pay no corporate tax?
Small Business Relief lets an eligible business be treated as having no taxable income for a tax period. According to the FTA (page last updated 6 May 2024):
| Condition | Detail |
|---|---|
| Who can elect | Resident persons (individuals and companies) |
| Election | Made for each tax period |
| Trade-offs | Other exemptions, reliefs and deductions are not available; no transfer pricing documentation, but arm’s length rules still apply |
The FTA’s worked example shows the “all previous periods” rule. Mr Y runs a business in Sharjah and earns AED 1.9 million in the latest period, but his revenue was AED 4.3 million in the period before, so he cannot use the relief.
How long does the relief last? The FTA page predates the latest change. On 7 August 2026 MoF announced Ministerial Decision No. 131, which extends the period in which relief may be claimed to tax periods ending on or before 31 December 2029. The AED 3 million threshold from Ministerial Decision No. 73 of 2023 continues to apply (WAM).
Before you rely on this: We have the WAM announcement of Ministerial Decision No. 131 of 2026 but have not read the decision text, and the FTA relief page still carries its May 2024 date. Confirm the current wording on the FTA or MoF website before relying on the 2029 end date.
Go deeper: read the VAT registration guide. Plain-English steps, with dates.
Does a free zone licence mean zero tax?
Not automatically. Free zone companies are taxable persons too. MoF says a free zone person that qualifies as a Qualifying Free Zone Person (QFZP) can benefit from 0% on its qualifying income. The FTA’s Free Zone Persons guide (CTGFZP1, May 2024), which builds on Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 265 of 2023, adds that a QFZP:
- must maintain adequate substance in the free zone;
- must prepare and maintain audited financial statements, regardless of revenue;
So whether a company qualifies depends on its income and structure, not on its licence alone.
How do the outcomes compare?
| Business type | Tax outcome (high level, from official publications) |
|---|---|
| Eligible business electing Small Business Relief | Treated as having no taxable income for that period |
| Qualifying Free Zone Person | 0% on qualifying income; 9% on other taxable income |
| Free zone person that does not qualify | Standard rates apply (see the FTA guide) |
What about individuals and property investors?
Wage income, personal investment income and real estate investment income are disregarded for that threshold. The guide defines real estate investment as selling, leasing or renting property that is not conducted, or required to be conducted, through a licence (FTA, Taxation of natural persons).
Take advice on whether your activity is licensed or large enough to count as a business.
What should you do this quarter?
- Check your financial year end and diarise the nine-month filing deadline.
- Confirm you are registered, or why you do not need to be.
- Work out whether Small Business Relief is realistic, and track revenue for all prior periods.
- If you are in a free zone, ask your adviser in writing whether you meet the QFZP conditions.
- Keep clean books; you will need accounts for any outcome.
- Read our VAT registration guide, because VAT runs on separate thresholds.
Frequently asked questions
Is there a Sharjah corporate tax rate?
No. The rates come from the federal law and apply across the UAE.
Do I pay corporate tax if I have a small SEDD licence?
It depends on income and structure.
Does my free zone licence mean zero tax?
Only if you qualify as a Qualifying Free Zone Person and the income is qualifying income. Other income is taxed at 9%.
Who can help?
A registered tax agent. The FTA keeps a public list; see also how to choose a business setup consultant.
General information only, not legal or tax advice. Rules and fees change, so confirm with the relevant authority (such as SEDD, FTA or SRERD) or a licensed adviser before you act. Last checked: 5 October 2026.
Next step: talk to a licensed adviser. Take your licence, lease and latest figures to a registered tax agent or a licensed consultant before you act. Our questions to ask an adviser will help you compare.