UAE Corporate Tax Calculator
Estimate your UAE federal corporate tax — 0% on the first AED 375,000 of profit, 9% above.
Your business
Accounting net profit (before adjustments).
If revenue ≤ AED 3M, Small Business Relief may apply (0 tax) through 2026.
UAE corporate tax (post-June 2023)
Estimate the UAE's new corporate tax
Since June 2023 the UAE charges 9% corporate tax above AED 375,000. See exactly what your business owes — and why the effective rate is often far below 9%.
0% starter band
Applies the 0% rate to the first AED 375,000 of profit and 9% only above it, so you see the true tiered liability.
Small Business Relief
Flags when revenue of AED 3M or less may qualify for Small Business Relief — zero corporate tax through 2026.
Effective rate
Shows your real effective tax rate, which for smaller companies is well under the 9% headline figure.
Profit after tax
See what your business keeps after corporate tax — the number that actually matters for planning.
Pairs with setup costs
Use alongside the UAE Business Setup Calculator to model both the cost of forming and the ongoing tax of running a company.
100% private
All calculations run in your browser — your financials never leave your device.
Who uses it
Startups & SMEs
Check whether Small Business Relief applies and what tax kicks in as you grow.
Business owners
Estimate the annual corporate tax bill for budgeting and pricing.
Entrepreneurs relocating
Compare the UAE's 9% regime against your home country before setting up.
Accountants
Quick client estimates of the headline corporate tax liability.
Frequently Asked Questions
How much is corporate tax in the UAE?
The UAE introduced a federal corporate tax effective for financial years starting on or after 1 June 2023. The rate is 0% on the first AED 375,000 of taxable income and 9% on taxable income above that. This makes the UAE one of the lowest corporate-tax jurisdictions among major economies, and small, profitable businesses pay an effective rate well below 9%.
What is the AED 375,000 threshold?
The first AED 375,000 of taxable income is taxed at 0%, designed to support small businesses and startups. Only profit above that figure is taxed at 9%. So a company with AED 500,000 profit pays 9% on just AED 125,000 — AED 11,250 — for an effective rate of 2.25%, not 9%.
What is Small Business Relief?
Small Business Relief lets a resident business with revenue of AED 3 million or less in the relevant and all previous tax periods elect to be treated as having no taxable income — meaning no corporate tax — for tax periods through to 31 December 2026. It is an election, with simplified compliance, aimed at easing the transition for small companies. Eligibility depends on meeting the revenue cap each period.
Do free zone companies pay corporate tax?
A Qualifying Free Zone Person can continue to benefit from a 0% rate on its "qualifying income," provided it meets substance requirements, does not elect to be taxed normally, and complies with the conditions. Non-qualifying income is taxed at 9%. The rules are detailed, so free zone businesses should confirm their status with a tax advisor — this calculator models the standard mainland regime.
What income is taxable?
Corporate tax is charged on accounting net profit as shown in financial statements prepared under IFRS, subject to specific adjustments (for example, certain disallowed expenses, exempt dividends, and participation exemptions). This calculator applies the rate to the profit figure you enter without modelling those adjustments, so treat it as an estimate of the headline liability.
When do I have to register and file?
All taxable persons, including free zone companies, must register for corporate tax with the Federal Tax Authority (FTA) and obtain a tax registration number. A corporate tax return is filed within nine months of the end of the relevant financial year, and any tax due is paid by the same deadline. Registration deadlines have been phased, so check the FTA portal for your specific date.
Understanding UAE Corporate Tax
For most of its history the UAE levied no federal tax on business profits, a cornerstone of its appeal to entrepreneurs. That changed in June 2023, when a federal corporate tax took effect. The headline 9% rate remains highly competitive globally, and the design — with a generous 0% band and relief for small businesses — keeps the burden light for the majority of companies. Understanding the structure helps you plan rather than panic.
The two-tier rate
UAE corporate tax has just two bands: 0% on taxable income up to AED 375,000, and 9% on everything above. Because the lower band is a true zero-rate slice (not a threshold that vanishes once you exceed it), the effective rate climbs gradually. A company earning AED 1,000,000 pays 9% on AED 625,000 — AED 56,250 — an effective rate of 5.6%. Only very large profits approach the full 9% effective rate.
Small Business Relief
To smooth the transition, the UAE introduced Small Business Relief: a resident business with revenue of AED 3 million or less can elect to be treated as having no taxable income, paying zero corporate tax, for tax periods running through to the end of 2026. It also brings simplified record-keeping. The relief is an election made in the tax return, and the revenue cap must be met in the current and every prior period — so growing past AED 3 million in any period ends eligibility.
Free zones and qualifying income
The UAE's many free zones retain a major advantage: a Qualifying Free Zone Person can still enjoy a 0% rate on its qualifying income, provided it maintains adequate substance, meets the qualifying-income conditions, and does not opt into the standard regime. Non-qualifying income is taxed at 9%. The definitions are technical, and getting them wrong can cost the 0% status entirely, so free zone businesses should take specific advice rather than assume blanket exemption.
What counts as taxable income
Corporate tax is based on accounting profit prepared under IFRS, then adjusted under the tax law — adding back disallowed expenses, removing exempt income such as qualifying dividends and gains under the participation exemption, and applying rules on interest deductibility and related-party transactions. This means your tax figure is rarely just 9% of your bookkeeping profit. This calculator gives the headline estimate; an accountant computes the adjusted taxable income for the actual return.
Registration, filing and the bigger picture
Every taxable person must register with the Federal Tax Authority and file a corporate tax return within nine months of their financial year-end, paying any tax by the same date. A separate 15% Domestic Minimum Top-up Tax applies to very large multinational groups under the OECD's global minimum-tax rules, but that affects only the largest players. For the typical UAE SME, the practical reality is straightforward: register, keep proper accounts, consider Small Business Relief, and budget 9% on profits above AED 375,000.