UAE corporate tax calculator

The UAE introduced federal corporate tax for financial years starting on or after 1 June 2023 under Federal Decree-Law No. 47 of 2022. It applies to companies and to individuals running a business with turnover above AED 1 million, but not to employment income or personal investments.

The rates

• 0% on taxable income up to AED 375,000.
• 9% on taxable income above AED 375,000.
• 0% on the qualifying income of a Qualifying Free Zone Person that meets the conditions; its other income is taxed at 9% from the first dirham.
• 15% minimum for large multinational groups (revenue of €750 million or more) under the Domestic Minimum Top-up Tax from 2025.

Example

A mainland company with revenue of AED 5 million and taxable income of AED 600,000 pays nothing on the first AED 375,000 and 9% on the remaining AED 225,000: AED 20,250, an effective rate of 3.4%. The same company with revenue under AED 3 million could elect Small Business Relief and pay nothing.

Small Business Relief

A resident business whose revenue is AED 3 million or less in the current and all previous tax periods can elect to be treated as having no taxable income, so no tax is due. It must still register and file a return. The relief was due to end in 2026, but in August 2026 the Ministry of Finance extended it to tax periods ending on or before 31 December 2029. It isn’t available to free zone persons claiming the 0% rate or to members of large multinational groups. Because it’s an election, you can choose not to claim it, for example to carry forward losses.

From profit to taxable income

Taxable income starts from the accounting profit in your financial statements and is adjusted for items such as non-deductible expenses (fines, 50% of entertainment costs, interest above the limits), exempt income (most dividends and qualifying participation gains) and losses carried forward. Related-party transactions must be at arm’s length. The calculator takes your taxable income as given; the Federal Tax Authority guides and a tax adviser can help with the adjustments.

Deadlines

Register with the FTA through EmaraTax, and file the return and pay within nine months of the end of each tax period. Late registration carries an AED 10,000 penalty. Keep records for seven years.