About the UAE Corporate Tax Calculator
The UAE introduced a federal Corporate Tax for financial years starting on or after 1 June 2023 under Federal Decree-Law No. 47 of 2022. Taxable income up to AED 375,000 is taxed at 0% and income above that at 9%. This calculator estimates the tax for a mainland company or a Qualifying Free Zone Person, applies brought-forward tax losses (capped at 75% of taxable income) and checks whether you can elect Small Business Relief.
Small Business Relief lets a resident person with revenue of AED 3,000,000 or less in the tax period (and every earlier period) be treated as having no taxable income, for tax periods ending on or before 31 December 2026. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on non-qualifying income, provided non-qualifying revenue stays within the de minimis limit of the lower of 5% of total revenue or AED 5,000,000.
It is meant for SME owners, freelancers operating through a licence, accountants and finance teams wanting a quick estimate. Enter taxable income after the adjustments in the law (exempt dividends, disallowed entertainment and interest, and so on) — the calculator does not make those adjustments. Large multinational groups subject to the 15% domestic minimum top-up tax are outside its scope.
With the default inputs, the corporate tax payable is AED 74,250.00. Change any value above to recalculate instantly.
How to use the uae corporate tax calculator
- 1Choose mainland or Qualifying Free Zone Person.
- 2Enter total revenue for the tax period.
- 3Enter taxable income after Corporate Tax adjustments and any losses brought forward.
- 4Pick the year your tax period ends and whether to elect Small Business Relief.
- 5Read the tax payable, effective rate and losses carried forward.
Formula and method
For a resident mainland company, taxable income (accounting profit after the adjustments set out in the Corporate Tax Law) is first reduced by brought-forward tax losses, which can offset no more than 75% of the period’s taxable income. The first AED 375,000 of what remains is taxed at 0% and the excess at 9%. If revenue is AED 3,000,000 or less and the tax period ends by 31 December 2026, electing Small Business Relief means no taxable income is recognised.
A Qualifying Free Zone Person pays 0% on qualifying income and 9% on all other taxable income, without the AED 375,000 0% band. If non-qualifying revenue is above the lower of 5% of total revenue or AED 5,000,000, the entity fails the de minimis test and is taxed at the standard rates.
- AED 375,000
- 0% band for resident taxable persons
- 75%
- Maximum share of taxable income offset by losses
- AED 3m
- Revenue ceiling for Small Business Relief
Worked examples
Mainland company, AED 1.2m taxable income
Revenue of AED 5m is too high for Small Business Relief. AED 1,200,000 − 375,000 = AED 825,000 is taxed at 9%, giving AED 74,250 — an effective rate of 6.19%.
Small business under AED 3m revenue
Revenue is within AED 3,000,000 and the period ends in 2026, so electing Small Business Relief removes all tax. Without it the business would pay 9% × AED 225,000 = AED 20,250.
Using brought-forward losses
Losses can offset only 75% of AED 800,000 = AED 600,000, leaving AED 200,000 of income — inside the 0% band — and AED 100,000 of losses to carry forward.
Qualifying Free Zone Person
Non-qualifying revenue of AED 150,000 is within the de minimis limit (5% of AED 5m = AED 250,000). Qualifying income is taxed at 0% and AED 100,000 of non-qualifying income at 9% = AED 9,000.
Frequently asked questions
What is the UAE corporate tax rate?+
Resident businesses pay 0% on taxable income up to AED 375,000 and 9% on taxable income above that. Qualifying Free Zone Persons pay 0% on qualifying income and 9% on other income, and large multinational groups can face a 15% domestic minimum top-up tax.
Who can claim Small Business Relief?+
Resident persons whose revenue is AED 3,000,000 or less in the current tax period and every previous tax period can elect it, for tax periods ending on or before 31 December 2026. Qualifying Free Zone Persons and members of large multinational groups cannot.
Do I still need to register if I pay no corporate tax?+
Yes. Taxable persons must register with the Federal Tax Authority and file a Corporate Tax return within nine months of the end of each tax period, even when tax is nil or Small Business Relief is elected.
How do tax losses work under UAE corporate tax?+
Tax losses can be carried forward indefinitely, but in any period they can offset no more than 75% of taxable income. Continuity of ownership (at least 50%) or of the same business is required to keep using them.
Are individuals subject to UAE corporate tax?+
Individuals are only taxable if they carry on a business or business activity in the UAE with turnover over AED 1,000,000 in a calendar year. Salary, personal investment income and real estate investment income are not taxed.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.