Corporate Tax Calculator UAE
Calculate your 9% corporate income tax liability with this corporate tax calculator UAE. Enter your net profit to see your exact CT due under current UAE tax law.
About This Tool
What Is Corporate Tax in the UAE?
Corporate Tax is a direct tax applied to the net profits of businesses in the UAE. It was introduced on 1 June 2023. The Federal Tax Authority (FTA) manages the collection and compliance through the EmaraTax portal.
This calculator uses the exact rules outlined in Federal Decree-Law No. 47 of 2022. It applies the 0% threshold and the 9% standard rate. It also accounts for the Small Business Relief option. No data is stored. All math runs in your browser.
Tax = AED 0(Taxable Income - 375,000) x 9% = Tax DueRelated Calculators
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How It Works
How to Calculate Your UAE Corporate Tax
Calculating corporate income tax requires adjusting your accounting profit to find your taxable income. Here is the exact method recognized by the FTA.
Find Your Net Profit
Start with your accounting net profit from your audited financial statements. This is your baseline before tax adjustments.
Apply Deductions
Subtract any exempt income, like dividends. Add back non-deductible expenses like entertainment costs or fines to get your Taxable Income.
Calculate the Tax
Apply the 0% rate to the first AED 375,000. Apply the 9% standard rate to the remaining balance above that threshold.
File On Time
Submit your return using your TRN (Tax Registration Number) via the EmaraTax Portal. Pay the tax due within 9 months of your financial year end.
Calculation Examples
See the Formula in Action
These examples show the actual math this tool performs. Both assume a standard 9% tax rate.
Common Scenarios
When to Use This Tool
Estimating Quarterly Provisions
Calculate your expected tax liability at the end of each quarter to set aside the right amount of cash before the filing deadline.
Setting Up a New Company
Project your first-year tax burden based on expected profits. This helps you choose the right free zone or mainland setup.
Preparing EmaraTax Returns
Use the breakdown to fill in the exact boxes on your EmaraTax corporate tax return form before submitting it to the FTA.
Evaluating Tax Groups
If you own multiple companies, calculate the standalone liability of each to see if forming a Tax Group lowers your total bill.
Tax Rates
UAE Corporate Tax Rates and Thresholds
The UAE uses a progressive bracket system for most businesses. The AED 375,000 Threshold ensures small businesses pay zero tax on their initial profits.
| Taxable Income Bracket | Tax Rate | Applies To |
|---|---|---|
| First AED 375,000 | 0% | All qualifying taxable persons |
| Above AED 375,000 | 9% | Standard mainland and free zone companies |
| Qualifying Free Zone Income | 0% | QFZP meeting specific substance rules |
| Non-Qualifying Free Zone Income | 9% | Free zone companies failing QFZP conditions |
| Multinational Entities (Pillar Two) | 15% | Global revenue exceeding EUR 750M |
The 9% standard rate only applies to the profit amount that exceeds the AED 375,000 threshold. If your taxable income is AED 400,000, only AED 25,000 is taxed at 9%.
Small Business Relief Rules
Small Business Relief allows businesses with revenue below AED 3 million to pay 0% corporate tax. You must elect to claim this relief when filing your return. This reliefs simplifies accounting, but you still must file a tax return.
Free Zone Rules
Corporate Tax for Qualifying Free Zone Persons
Free zones do not automatically grant a 0% tax rate anymore. Under the new law, free zone companies must meet strict rules to qualify for the 0% rate.
If a Qualifying Free Zone Person (QFZP) fails to meet these conditions, their entire income is taxed at the standard 9% rate. It is critical to audit your compliance before filing.
Expense Rules
Deductible vs Non-Deductible Expenses
Not all expenses reported in your financial statements reduce your tax bill. The FTA strictly defines what can be subtracted from your accounting profit.
| Category | Deductible? | Common Examples |
|---|---|---|
| Salaries and Benefits | Yes | Wages, visa costs, end of service benefits |
| Rent and Utilities | Yes | Office rent, electricity, internet |
| Entertainment Costs | No | Client dinners, corporate events, hospitality |
| Fines and Penalties | No | Late filing fees, traffic fines, MOHRE penalties |
| Interest Expense | Partial | Deductible up to 30% of EBITDA |
Non-deductible expenses must be added back to your accounting profit. This increases your taxable income. Keep clear records to justify every deduction you claim during an audit.
This calculator provides estimates based on standard UAE Corporate Tax rules. It does not constitute tax advice. Actual liabilities may vary based on specific business structures, transfer pricing adjustments, or unrealized gains. For formal tax guidance, consult a FTA-registered tax agent.
Frequently Asked Questions
UAE Corporate Tax FAQs
The standard corporate tax rate in the UAE is 9%. This rate applies to taxable income exceeding AED 375,000. Income below this threshold is taxed at 0%.
All qualifying taxable persons in the UAE are eligible for the 0% rate on their first AED 375,000 of taxable income. This includes mainland companies, free zone entities, and sole establishments.
Taxable income starts with your accounting net profit. You then add back non-deductible expenses (like fines) and subtract exempt income (like qualifying dividends) to find your final taxable income.
Small Business Relief allows businesses with annual revenue below AED 3 million to pay 0% corporate tax. Businesses must elect this relief when filing their return on the EmaraTax portal.
Free zone companies pay 9% on non-qualifying income. They can pay 0% on qualifying income only if they meet the strict substance, qualifying activity, and transfer pricing rules to be classified as a Qualifying Free Zone Person.
Non-deductible expenses include entertainment costs, fines, bribes, and donations to unapproved entities. These must be added back to your accounting profit to calculate your taxable income.
You must create an account on the EmaraTax portal, select the Corporate Tax registration service, and submit your trade license and financial details. The FTA will then issue your Tax Registration Number (TRN).
Yes. Multinational enterprises with global revenues exceeding EUR 750 million are subject to a 15% effective tax rate under the OECD Pillar Two rules. This prevents large MNCs from paying less than 15% tax in the UAE.
Yes. Tax losses can be carried forward indefinitely to offset future taxable profits. However, you can only offset up to 75% of your taxable income in any given year using these carried-forward losses.
Late registration incurs a fixed penalty of AED 10,000. The FTA takes compliance seriously. Registering before your deadline is critical to avoid this fine and potential business license suspensions.