UAE corporate tax calculator
Rules checked 6 Oct 2026
Estimate only. Groups, transfer pricing, losses carried forward and the 15% top-up tax for large multinationals are not included.
Understand the result: UAE corporate tax explained: the 0% and 9% bands
How UAE corporate tax is worked out
Corporate tax applies to UAE businesses for financial years starting on or after 1 June 2023, under Federal Decree-Law No. 47 of 2022. For most businesses the calculation has two bands.
| Taxable income | Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
Only the part above AED 375,000 is taxed. A business with taxable income of AED 600,000 pays 9% on AED 225,000, which is AED 20,250. Its effective rate is about 3.4%, not 9%.
Taxable income is not the same as revenue
The calculator asks for revenue and taxable income separately because they do different jobs.
- Revenue decides whether you can use Small Business Relief (the AED 3 million test).
- Taxable income is what the tax is charged on. It starts from your accounting profit and is then adjusted as the law requires.
Typical adjustments include adding back half of entertainment costs for clients, adding back fines and penalties, limiting interest deductions for larger businesses, and removing exempt income such as qualifying dividends. Our guide to taxable income vs accounting profit lists the common ones.
Small Business Relief
Resident businesses with revenue of AED 3 million or less in a tax period can elect Small Business Relief. If they do, they are treated as having no taxable income for that period, so the tax is zero. In August 2026 the Ministry of Finance extended the relief to tax periods ending on or before 31 December 2029.
The relief has conditions:
- Revenue must be AED 3 million or less in the current period and in every earlier tax period.
- Qualifying Free Zone Persons cannot use it.
- Members of multinational groups with consolidated revenue above AED 3.15 billion cannot use it.
- You still have to register, keep records and file a return to claim it.
The calculator shows the 9% figure even when relief may apply, so you can see what is at stake if you do not elect it or stop qualifying. Read more in our Small Business Relief guide.
Free zone companies
A Qualifying Free Zone Person pays 0% on qualifying income and 9% on non-qualifying income. Choose that option in the calculator and enter only the non-qualifying income. Keep in mind that non-qualifying revenue above the de minimis limit (the lower of 5% of total revenue or AED 5 million) can cost a company its qualifying status for five years. See free zone companies and the 0% rate.
What the calculator does not cover
This is an estimate for a single business. It does not include tax groups, transfer pricing adjustments, losses brought forward (which can offset up to 75% of taxable income), foreign tax credits, or the 15% Domestic Minimum Top-up Tax that applies to multinational groups with revenue of EUR 750 million or more from 2025. If any of these apply to you, use the result as a starting point and work through the numbers with a registered tax agent.
Key dates
- Registration: new companies register within three months of incorporation. Individuals running a business register by 31 March of the year after their turnover passes AED 1 million.
- Return and payment: within nine months after the end of the tax period.
- Penalties: AED 10,000 for late registration; late filing costs AED 500 a month for the first 12 months and AED 1,000 a month after that.
Frequently asked questions
Do I pay 9% on all my profit?
No. The first AED 375,000 of taxable income is taxed at 0%, so you pay 9% only on the part above it.
I made a loss. Do I still need to file?
Yes. Registration and filing are required even if no tax is due. Filing also lets you carry the loss forward.
Does Small Business Relief happen automatically?
No. You elect it in your tax return for each period you qualify.