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UAE Corporate Tax Calculator

Updated June 2026 · Based on Federal Decree-Law No. 47 of 2022

Estimate your UAE Corporate Tax — 0% on the first AED 375,000 of taxable income and 9% above it.

Taxable income is accounting net profit after allowable adjustments — not total revenue.

Small Business Relief is available for tax periods up to 31 December 2026, for resident businesses with revenue not exceeding AED 3 million.

Quick answer

UAE Corporate Tax is a federal tax on business profits introduced under Federal Decree-Law No. 47 of 2022, effective for financial years starting on or after 1 June 2023. Taxable income up to AED 375,000 is taxed at 0%; income above AED 375,000 is taxed at 9%. Businesses with revenue up to AED 3 million can elect Small Business Relief and pay 0%.

UAE Corporate Tax rates
Taxable income / statusTax rate
Up to AED 375,0000%
Above AED 375,0009% (on the excess)
Small Business Relief (revenue ≤ AED 3M)0% (elective)
Qualifying free-zone income0% (conditions apply)

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:

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

Example

For taxable income of AED 500,000: the first AED 375,000 is taxed at 0%, and the remaining AED 125,000 at 9% = AED 11,250 Corporate Tax (an effective rate of 2.25%).

Small Business Relief

Resident businesses with revenue of AED 3 million or less can elect Small Business Relief and be treated as having no taxable income (no tax due) for tax periods ending on or before 31 December 2026. You must still register for Corporate Tax and file a return.

What this calculator excludes

It covers the standard mainland regime. It does not model Free Zone Qualifying Income (0%) or the 15% Domestic Minimum Top-up Tax (DMTT) that applies to large multinational groups with global revenue of EUR 750 million or more.

Estimate for guidance only — not tax advice. Source: UAE Government (u.ae) · Federal Tax Authority.

Frequently asked questions

What is the corporate tax rate in the UAE?
0% on taxable income up to AED 375,000 and 9% above it, for financial years from 1 June 2023 (Federal Decree-Law No. 47 of 2022).
How is UAE corporate tax calculated?
First AED 375,000 at 0%, the rest at 9%. Taxable income of AED 500,000 → (500,000 − 375,000) × 9% = AED 11,250.
What is Small Business Relief?
Resident businesses with revenue ≤ AED 3 million can elect to be treated as having no taxable income (no tax due) for periods ending on or before 31 Dec 2026. Registration and filing are still required.
Do Free Zone companies pay corporate tax?
A Qualifying Free Zone Person can get 0% on Qualifying Income and 9% on the rest, subject to conditions. Confirm Free Zone treatment with a tax adviser.

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