Guide for Corporate tax UAE 2023 effect to Restaurants industry

The UAE has offered many business opportunities for restaurant and F&B business owners over the past few years and continues to do so in 2026. So, the hospitality industry is growing and poised to grow faster in the future.

Meanwhile, the implementation of the corporate tax UAE in 2026 on profit for the current fiscal year has clarified many points for restaurant business owners, like you or those planning to start a business in this field.

It seems you have a few questions:

• What is the current tax in UAE for 2026?
• Whether the restaurant industry will fall under the proposed purview or not,
• What will be the procedure for tax filing in 2026, and most importantly,
• Is there any automated software that will come in handy, etc.?

No worries more. In this article, you’ll come to know all the recent details for 2026. Stay tuned till the end.

What is Corporate tax UAE?

UAE has established that all businesses with a net profit (minus expenses) of more than 375,000 AED (about $100,000) will have to pay a 9% corporate tax. To support startups and small businesses, the tax system does not impose any tax until the profits go beyond AED 375,000. Small Business Relief remains a critical factor in 2026, allowing eligible resident businesses with revenue below AED 3 million to elect for zero tax for periods ending on or before December 31, 2026.

In addition, according to the Global Minimum Corporate Tax Rate Agreement, large multinational firms that generate over EUR 750 million in profit will be required to pay 15% of their net profit as tax.

However, larger multinational companies have different business conditions, so they could be charged a different tax rate as per a progressive corporate tax system with rates between 9% and 55%. The standard 9% rate applies to the first taxable period starting on or after June 1, 2023, meaning 2026 is a primary year for filing and payments.

What Types of Businesses Pay New tax in UAE?

UAE operating a three-tier federal corporate tax framework in 2026. There is no tax for startups and small businesses with less than 375,000 AED in profit. A standard 9 percent tax is applied to businesses whose net profits exceed 375,000 AED.

The larger multinational companies are subject to a tax-based progressive corporate tax rate of between 9% and 15% (up to 55% for extractive industries), according to their revenue generation.

Businesses involved in the extraction of natural resources, foreign investors, qualifying free zone businesses (subject to conditions), and individuals who have income from investments in shares, employment, and personal real estate will fall under specific exclusions.

What kind of business is a Restaurant in UAE?

Restaurants, QSR, bars, and other F&B businesses related to food and drinks generally fall under the hospitality industry. Restaurant and fast-food businesses in Dubai are extremely profitable if they’re well-managed, as the business owners must abide by strict codes, rules, and regulations.

Likewise, the 2026 corporate tax applies to restaurant businesses, though some exceptions and reliefs exist. It is essential to stay well-informed about every 2026 rule to avoid future complications.

Do Restaurants business needs pay New UAE Tax?

The corporate tax applies to all kinds of businesses and corporate activities in the UAE. The hospitality industry or restaurant business is not an exception.

The restaurant owners are liable to pay corporate tax, but the government does not impose any tax on the business until they earn more than AED 375,000 in net profit. However, all businesses must register and file a return, regardless of whether tax is owed.

Steps to be followed by restaurants for corporate tax filing in 2026

The federal corporate income tax is a standard process in 2026. Once you have a solid understanding of the current tax structure, you can follow these basics for tax filing:

• Determine the best legal structure for your business (e.g., Sole Proprietorship or LLC).
• Identify eligible tax deductions (like overheads, ingredients, and staff salaries) to estimate net profit accurately.
• Calculate the 9% tax on profit exceeding the 375,000 AED band, or elect for Small Business Relief if revenue is under AED 3M.
• File your tax return within 9 months from the end of the relevant tax period (e.g., September 30, 2026, for calendar year-end businesses) to avoid penalties.

PosBytz is ready to provide the best ERP with integrated accounting software for your restaurant business and can enable 360-degree Accounting and Financial reports to manage your 2026 Corporate tax returns.

Need for software to manage your business corporate tax UAE 2026 filing

The UAE tax regime includes diverse policies, from the 5% VAT system to the 9% corporate tax. Determining the tax liability for your business manually is no longer viable in the digital-first 2026 market.

So, having reliable software is a must for streamlining the tax filing process. Have a close look at PosBytz restaurant management software with accounting.

How PosBytz can Support your Corporate Tax UAE 2026 filing?

The PosBytz tax solution is designed for small to multi-chain restaurant businesses following the recent corporate tax mandates of Dubai and the UAE.

Conclusion

With the PosBytz team by your side, there is no need to worry about 2026 tax filing. You can expect a complete personalized accounting solution. Contact our qualified tax professional for guidance, and let us handle the filing process to save big in the upcoming financial year.

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