UAE Corporate Tax Calculator
Calculate estimated UAE corporate tax with 0% threshold up to AED 375,000 and 9% on taxable income above. Includes Small Business Relief and Free Zone logic.
Tax Information
Required for Small Business Relief calculation
Net profit before tax
Expenses not allowed for tax purposes
Income exempt from corporate tax
Losses from previous years
TAX CALCULATION
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What is UAE Corporate Tax?
The UAE introduced a federal corporate tax in 2023 at a rate of 9% on taxable income above AED 375,000. The first AED 375,000 of taxable income is taxed at 0%, providing relief for small businesses and startups. This calculator helps UAE businesses estimate their corporate tax liability accurately.
How UAE Corporate Tax is Calculated
Taxable income is calculated as: Accounting Profit + Non-Deductible Expenses - Exempt Income - Tax Losses Carried Forward. Once taxable income is determined, the 0% threshold of AED 375,000 is applied. Any income above this threshold is taxed at 9%.
What Details Are Needed for Calculation
- Accounting Profit: Your net profit before tax from financial statements
- Non-Deductible Expenses: Expenses not allowed for tax purposes (e.g., certain entertainment, penalties)
- Exempt Income: Income exempt from corporate tax under UAE law
- Tax Losses: Losses from previous years that can be carried forward
- Business Type: Mainland, Free Zone, or Freelancer status affects tax treatment
Small Business Relief
Small Business Relief may apply if your annual revenue is AED 3,000,000 or below. If eligible, your corporate tax liability may be reduced to AED 0. Eligibility depends on UAE FTA rules, tax period, and meeting specific criteria. This calculator estimates whether Small Business Relief may apply based on revenue threshold.
Free Zone Company Tax Treatment
Free Zone companies may be exempt from corporate tax if they are Qualifying Free Zone Persons (QFZP). To qualify, free zone businesses must meet substance requirements, derive qualifying income, and avoid excluded activities. Qualifying income is taxed at 0%, while non-qualifying income is taxed at 9%. Free zone tax treatment depends on qualifying income, substance requirements, excluded activities, de minimis rules, and FTA conditions.
Important Disclaimer
This calculator provides an estimate only. UAE corporate tax treatment depends on FTA rules, accounting treatment, exemptions, reliefs, free zone status, and business activity. Always consult a qualified tax advisor before filing your corporate tax return.
