UAE Corporate Tax Calculator (0% and 9%)

How is UAE corporate tax calculated?

UAE corporate tax works in two bands under Federal Decree-Law No. 47 of 2022. The first AED 375,000 of taxable income is taxed at 0%. Only the part above AED 375,000 is taxed at 9%. It is not a flat 9% on everything once you cross the line.

In plain words: tax = 9% x (taxable income minus AED 375,000), and zero if your taxable income is AED 375,000 or less.

Taxable income is not the same as revenue. It starts from your accounting net profit and is then adjusted for things the law adds back or takes out, such as certain non-deductible expenses. The calculator asks for that adjusted figure. It also asks for your total revenue, because revenue decides whether you can use Small Business Relief.

A worked example

Say your mainland company has taxable income of AED 1,000,000 for the year and revenue of AED 4,500,000.

• First AED 375,000 at 0%: AED 0
• Remaining AED 625,000 at 9%: AED 56,250
• Total corporate tax: AED 56,250

Your effective rate is 56,250 divided by 1,000,000, which is 5.625%. That is why the effective rate always sits below 9%, and gets closer to 9% as profit grows.

Now take a smaller business: revenue of AED 2,500,000 and taxable income of AED 600,000. Without relief the tax would be 9% of AED 225,000, so AED 20,250. Because revenue is AED 3 million or less, the business can elect Small Business Relief and be treated as having no taxable income. The tax due becomes AED 0, but the company still has to register and file a return to claim it.

What is Small Business Relief?

Small Business Relief lets a resident person whose revenue is AED 3 million or less, in the current tax period and in every previous one, choose to be treated as having no taxable income. It is an election, not automatic. You make the choice in your corporate tax return.

The relief was first set to cover tax periods ending by 31 December 2026. According to The National, Ministerial Decision No. 131, announced on 7 August 2026, extends it to tax periods ending on or before 31 December 2029. Check the latest wording with the Ministry of Finance or the Federal Tax Authority before you rely on it.

Rules to know

When this calculator does not apply

The tool is built for mainland companies and for individuals doing business with turnover above AED 1 million. It gives a fair estimate for them. It is not the right tool if:

• You are a Qualifying Free Zone Person. Your qualifying income is taxed at 0% and other income at 9%, so you need to split your income first.
• You belong to a multinational group with revenue of EUR 750 million or more. The 15% domestic minimum top-up tax can apply on top.
• You are an exempt entity, such as certain government or public benefit bodies.
• You earn a salary only. Employment income is not business income, so corporate tax does not touch it.

Tips before you file

• Register on time. Missing registration can lead to penalties, even when the tax due is zero.
• Track revenue every year. Small Business Relief looks at every previous period too. One year above AED 3 million ends your eligibility for later years.
• Keep your books clean. Taxable income starts from proper financial statements, so good bookkeeping saves money and stress.
• Do not forget VAT. Corporate tax and VAT are separate. Our VAT calculator handles the 5% side, and the UAE VAT and corporate tax guide explains how the two fit together.
• Starting out? Read how to start a business in the UAE to see where tax registration sits in the setup steps.

This page gives an estimate to help you plan. It is not tax advice. For your actual return, talk to a registered tax agent or accountant.