How to Register for Corporate Tax in UAE 2026: Guide for Offshore Companies

With the UAE introducing new corporate tax rules for 2026, offshore companies face a more complex regulatory landscape. This guide explains when a 0% rate applies, when tax is due, how it’s calculated, and how to register your company to stay compliant.

Does UAE Corporate Tax Apply to Offshore Companies?

Offshore companies in the UAE are considered UAE-incorporated entities and fall under the scope of corporate tax. However, they are subject to a 0% tax rate if they meet the requirements to be eligible as a Qualifying Free Zone Person (QFZP).

It is important to remember that not all offshore companies are automatically considered “Free Zone Person” for Corporate Tax purposes, and QFZP treatment applies only when the entity meets all specified conditions. If not, different tax structures apply. 

When Does a Company Qualify for 0% Free Zone Tax?

To be considered a QZFP, an offshore company must meet the following conditions: 

• Incorporated in (or registered as) a Free Zone Person under the Corporate Tax rules. The company should not be simply branded as “offshore”.

• Maintains proper and accurate economic substance in the UAE

• Does not elect to be taxed under the standard regime

• Earns only qualifying income, such as:

1. Income from other free zone entities

2. Foreign-sourced income

3. Certain other types of passive income may be treated as qualifying or exempt in specific cases. This classification is based on detailed rules and conditions.

What happens if an offshore company does not qualify for QFZP status?

If an offshore company does not have qualifying income, it is treated under the standard corporate tax structure in the UAE (including de minimis considerations and potential loss of QFZP status).

If a company earns income from the mainland, it increases its qualification risk and is subject to the standard 9% corporate tax rate on taxable income exceeding AED 375,000.

In other words, if your offshore company does not meet the criteria for QFZP, it will be treated as a regular taxable entity subject to 9% tax on profits exceeding AED 375,000 and required to file corporate tax returns.

Economic Substance Requirements (ESR)

As of 2026, ESR reporting is no longer required for financial years ending after 31 December 2022. However, if your business was subject to the obligations in previous financial years, retain the documents to demonstrate compliance. 

Besides this, “substance” remains relevant under Corporate Tax in practice if your aim is to support Free Zone treatment, manage Permanent Establishment risk, or handle cross-border structures.

How to register for corporate tax in the UAE? 

If you own an offshore company in RAK, ICC, JAFZA, or similar free zone jurisdictions, here is how to ensure you comply with the corporate tax in the UAE: the next steps:

• Confirm the entity’s Corporate Tax status, whether it is resident/non-resident, and its eligibility to be treated as a Free Zone Person. 

• Analyse income streams and counterparties (whether it is mainland vs Free Zone vs foreign), and check for any possibility for “non-qualifying” revenue risk.

• Plan your compliance baseline from registration, bookkeeping, financial statements, and a Corporate Tax return within the required timeline.

• Review your corporate tax exposure

Key Takeaways 

Not all offshore companies are subject to 0% corporate tax in the UAE. It primarily depends on the income and eligibility for QFZP treatment. Corporate filing is still required even with a 0% outcome, and a passive income exemption depends on the conditions and the correct classification of income.