UAE Corporate Tax Calculator

About the UAE Corporate Tax Calculator

UAE Corporate Tax is charged on taxable income: your accounting net profit, adjusted for exempt income, expenses the law does not allow and tax losses. The first AED 375,000 is taxed at 0% and the rest at 9% (Corporate Tax Law, Article 3). A Qualifying Free Zone Person pays 0% on its Qualifying Income and 9% on its other taxable income, and a natural person running a business is taxable only when the business turnover exceeds AED 1,000,000 in a calendar year.

This calculator works out the taxable income and the tax for one tax period, shows every step, checks whether you can elect Small Business Relief (revenue of AED 3,000,000 or less) and gives the date by which you must file the return and pay: nine months after the period ends. Everything is calculated in your browser.

The formula

Taxable income = accounting income − exempt income + expenses that are not deductible ± other adjustments − tax loss relief.

Corporate Tax = 0% × the first AED 375,000 + 9% × (taxable income − AED 375,000).

Every dirham above AED 375,000 costs 9 fils, so the effective rate on AED 1,000,000 is 5.625%. The rates are in Article 3 of the Corporate Tax Law; the AED 375,000 band is on the UAE government portal and in the Federal Tax Authority’s small business bulletin.

The adjustments

• Exempt income (Articles 22 and 23): dividends from UAE companies, income from a participating interest (5% or more, held for at least 12 months, among other conditions) and the income of a qualifying foreign branch. Enter what is included in your profit.
• Expenses that are not deductible (Articles 32 and 33): half of client and business-partner entertainment, fines and penalties other than compensation, donations to bodies that are not Qualifying Public Benefit Entities, bribes, dividends paid to owners, Corporate Tax itself, recoverable input VAT and tax on income paid abroad.
• Tax losses (Articles 37 and 39): losses brought forward reduce a later period’s taxable income by at most 75% of it, and stay available only while the same owners keep at least 50% of the business or it carries on the same or a similar activity.
• Other adjustments: anything else, for example net interest above the limit of 30% of EBITDA (Article 30) or a transfer pricing adjustment.

Small Business Relief

A Resident Person, whether a company or a natural person, whose revenue is AED 3,000,000 or less in the tax period and in every earlier one may elect in each tax return to be treated as having no taxable income (Federal Tax Authority). Qualifying Free Zone Persons and members of multinational groups with consolidated revenue above AED 3.15 billion cannot. The relief covers the tax periods set in the Ministerial Decision on Small Business Relief, as extended by Ministerial Decision No. 131 of 2026; the calculator checks your period against them.

With the election there is no tax to pay and the return and records are simpler, but exempt income, reliefs, deductions and tax loss relief do not apply for that period (Article 21).

Free zones and natural persons

A Qualifying Free Zone Person (Article 18) keeps adequate substance in the UAE, derives Qualifying Income, has not elected the standard rates, follows the transfer pricing rules and meets any other condition the Minister sets. A person that fails any condition at any time in a tax period is not a Qualifying Free Zone Person from the start of that period, and its taxable income is taxed at the standard rates.

A natural person is taxable only when the turnover of the business in the UAE exceeds AED 1,000,000 in the calendar year. Wages, personal investment income and real estate investment income are not business income (Federal Tax Authority).

Deadline, records and large groups

Every taxable person files a tax return for each tax period, and pays the tax, within nine months of the end of the period (Ministry of Finance; Articles 48 and 53). Records are kept for seven years after the end of the tax period (Article 56). Multinational groups with consolidated revenue of EUR 750 million or more in at least two of the four preceding financial years may also owe the Domestic Minimum Top-up Tax, which brings their effective rate up to 15%.

Limitations

• One tax period of one taxable person: tax groups, partnerships, foreign tax credits and withholding tax credits are not modelled.
• The Domestic Minimum Top-up Tax of large multinational groups is not calculated; the calculator only points to it.
• You decide the adjustments: the calculator does not check that income is exempt or that an expense is deductible, and it does not apply the interest limitation for you.
• Qualifying Free Zone Person status, and the split between Qualifying Income and other income, are yours to work out under the Cabinet and Ministerial decisions.
• Penalties for late registration, filing or payment are not worked out.

Privacy

Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.