UAE Corporate Tax Calculator
See exactly what you owe — the 0% band, the 9% rate, Small Business Relief, and the free zone de minimis test that can cost you five years of 0%.
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General guidance based on Federal Decree-Law No. 47 of 2022 and current Ministerial Decisions — not tax advice, and it does not model tax losses, foreign tax credits, exempt income, transfer pricing or the 15% DMTT. Your actual liability depends on your full accounts. Confirm your position with a registered tax adviser or the FTA.
How UAE corporate tax is worked out
The 9% headline rate is charged only on the part of your taxable income above AED 375,000 — never on the whole profit. Taxable income starts from your accounting profit, then non-deductible expenses such as fines and half of entertainment spending are added back.
| Taxable income | Rate |
|---|---|
| First AED 375,000 | 0% |
| Everything above AED 375,000 | 9% |
Worked example: taxable income of AED 900,000. The first 375,000 is free, leaving 525,000 taxed at 9% — a bill of AED 47,250. That is an effective rate of about 5.3%, not 9%.
Small Business Relief is running out
If your revenue is AED 3 million or under, you can elect Small Business Relief and be treated as having no taxable income — no corporate tax at all. You still have to register, keep records and file a return, and you must elect it each period.
The deadline matters. The relief applies to tax periods ending on or before 31 December 2026. After that, the standard rules return for everyone: 0% on the first AED 375,000 and 9% above it, no matter how small your revenue. Many small companies that have never paid corporate tax will face their first real bill on the following return.
If that is you, the calculator above shows both figures — what you pay now under the relief, and what the same numbers would cost once it ends. That gap is what you should start putting aside.
Free zones: the 5% cliff edge
A Qualifying Free Zone Person pays 0% on Qualifying Income — broadly, dealings with other free zone persons and international clients. Income from mainland customers is generally not qualifying, and is taxed at 9% with no AED 375,000 relief.
The trap is the de minimis rule. Non-qualifying revenue must stay within the lower of 5% of total revenue or AED 5 million. Cross it and you lose QFZP status for the current tax period and the next four — the 0% rate vanishes on all your income for five years.
- It is a cliff, not a slope: being 0.1% over is as costly as being 50% over.
- One mainland invoice, taken casually, can trigger it.
- QFZP status also demands real substance and audited financial statements.
If you are anywhere near the limit, take advice before you sign the contract, not after.
Frequently Asked Questions
How much corporate tax will I actually pay in the UAE?
For an ordinary business, the first AED 375,000 of taxable income is taxed at 0% and everything above it at 9%. So on a taxable income of AED 900,000 you pay nothing on the first 375,000 and 9% on the remaining 525,000, which comes to AED 47,250. The headline 9% is charged only on the slice above the threshold, never on the whole profit.
What is Small Business Relief and am I eligible?
If your revenue is AED 3 million or less in the current and all previous tax periods, you can elect Small Business Relief and be treated as having no taxable income, so no corporate tax is due at all. You must still register with the FTA, keep proper records, file a return, and elect the relief each period. It is not available to a Qualifying Free Zone Person, or to a member of a multinational group with consolidated revenue above AED 3.15 billion.
When does Small Business Relief end?
It applies to tax periods ending on or before 31 December 2026. For periods after that date the standard rules return, meaning 0% on the first AED 375,000 and 9% above it, regardless of how small your revenue is. If you have been relying on the relief, this is the point to model what your first real tax bill looks like and to start setting money aside.
Do free zone companies pay corporate tax?
Free zone companies are inside the regime, but a Qualifying Free Zone Person pays 0% on Qualifying Income, which broadly covers dealings with other free zone persons and international transactions. Any income that is not qualifying, typically mainland customers, is taxed at 9%, and importantly the AED 375,000 zero band does not apply to it. Meeting the conditions requires real substance, audited financial statements and transfer pricing compliance.
What is the de minimis rule and why does it matter so much?
To keep QFZP status, non-qualifying revenue must stay within the lower of 5% of total revenue or AED 5 million. Breach it and the entity loses QFZP status for the current tax period and the four that follow, which means the 0% rate disappears on all its income for five years. This is a cliff edge, not a sliding scale, so a single mainland invoice can be extremely expensive. If you are anywhere near the limit, get professional advice before signing.
When do I have to register and file?
Every taxable person, including free zone companies, must register with the Federal Tax Authority and obtain a Corporate Tax Registration Number, even if the outcome is no tax to pay. Returns are filed through EmaraTax within nine months of the end of your financial year, and any tax due is payable by the same deadline. For a 31 December year end, that means a 30 September deadline. Late registration, filing and payment all carry penalties.
Get your corporate tax position confirmed
Browse UAE tax consultants and accounting firms who handle FTA registration, corporate tax filing and free zone QFZP compliance.