UAE Corporate Tax Calculator

How is UAE Corporate Tax calculated?

Under Federal Decree-Law No. 47 of 2022, UAE Corporate Tax applies to financial years starting on or after 1 June 2023. The bands are simple; the work is in arriving at the figure you apply them to.

• 0% on taxable income up to AED 375,000.
• 9% on taxable income above AED 375,000.
• Taxable income is accounting net profit after allowable adjustments — not total revenue.

Worked example 1 — just above the threshold

Worked example 2 — an established trading company

Worked example 3 — revenue is high, taxable income is not

Taxable income is not revenue

Taxable income starts from the net profit in financial statements prepared under accepted accounting standards, then applies the adjustments set out in the Corporate Tax Law and the Ministerial Decisions made under it. Those adjustments are specific to each business and are not modelled here — the figure you enter above should already be the adjusted one. If you are working from a trial balance, that step is one for your accountant or a registered tax agent.

Small Business Relief in detail

Small Business Relief allows an electing resident business to be treated as having no taxable income for the period. It is an election, not an automatic exemption, and it carries conditions:

• Revenue of AED 3 million or less in the current tax period and in all previous tax periods. Exceeding the threshold in any earlier period removes eligibility even if current revenue is below it.
• Available for tax periods ending on or before 31 December 2026.
• Not available to a Qualifying Free Zone Person, or to a member of a multinational group with consolidated group revenue of more than AED 3.15 billion.
• Elected separately for each tax period — it is not a status that carries forward automatically.
• Registration and filing are still required. Electing the relief does not remove either obligation.
• Where the relief is elected, the Federal Tax Authority states that other exemptions, reliefs and deductions are not available for that period.

Because the election is made period by period, it deserves a decision each time rather than a default — particularly for a business making losses, where the treatment of those losses is set out in Ministerial Decision No. 73 of 2023 and is worth checking before electing.

Free zone companies

Being registered in a free zone does not by itself produce a 0% rate. A Qualifying Free Zone Person is taxed differently, subject to conditions set out in the law, and is separately excluded from electing Small Business Relief. The rules are specific enough that free-zone businesses should take advice on their own facts rather than work from a general calculator. This page models the standard regime.

Registration, filing and deadlines

Corporate Tax obligations run on the tax period, which for most businesses is the financial year.

The Federal Tax Authority states that the Corporate Tax return must be submitted, and any Corporate Tax liability settled, within nine months from the end of the tax period. A period ending 31 December 2026 therefore has a filing and payment date of 30 September 2027.

Registration is a separate obligation with its own deadlines, and it applies to taxable persons even where the outcome is nil — including businesses within the 0% band and those electing Small Business Relief. Administrative penalties apply to late registration and late filing; the current schedule is published by the FTA and is the version to work from.

What this calculator does not model

• Free Zone Qualifying Income and the conditions attached to it.
• Any additional charge applying to members of large multinational groups.
• Tax groups, where several UAE entities are treated as a single taxable person.
• Foreign tax credits, withholding, and the interaction with double tax treaties.
• The adjustments described above — the input is assumed to be taxable income already.