UAE Corporate Tax Calculator
Do your corporate tax computation from accounting profit or from taxable income: 0% on the first AED 375,000 and 9% on the rest, as set out by the Federal Tax Authority. The same federal rules apply in Abu Dhabi, Dubai and every emirate.
- Add-backs less exempt income
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- Tax losses used
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- Taxable income
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- Income taxed at 0%
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- Income taxed at 9%
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- Effective rate
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- Tax losses carried forward
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Estimate only. Not tax advice. Free zone, multinational and other special regimes are not modelled, and the computation covers the common adjustments only (not interest capping, transfer pricing or unrealised gains). Speak to an accountant or the Federal Tax Authority.
How it is calculated
- Start from accounting net profit. Add back 50% of entertainment costs and all fines, penalties and other non-deductible costs, then take out exempt income.
- Deduct tax losses brought forward, up to 75% of that figure. The rest is the taxable income.
- The first AED 375,000 of taxable income is taxed at 0%.
- The part above AED 375,000 is taxed at 9%.
- So tax = (taxable income − 375,000) × 9%, or zero at 375,000 or less. A loss gives no tax.
Small Business Relief: if revenue is AED 3,000,000 or less in this and every earlier tax period, the business can elect to be treated as having no taxable income, for tax periods ending on or before 31 December 2026. It is not available to multinational group members or Qualifying Free Zone Persons, and you still register and file a simplified return.
Examples
Corporate tax computation: a worked example
A mainland company with these figures for its tax period:
| Accounting net profit | 1,500,000 |
| Add back 50% of entertainment of 80,000 | + 40,000 |
| Add back fines and penalties | + 15,000 |
| Less exempt dividends | − 200,000 |
| Before tax losses | 1,355,000 |
| Less losses brought forward of 400,000 (cap 75% = 1,016,250) | − 400,000 |
| Taxable income | 955,000 |
| Corporate tax: (955,000 − 375,000) × 9% | AED 52,200.00 |
Abu Dhabi, Dubai and the other emirates
Corporate tax is federal, so the computation, the AED 375,000 band and the 9% rate are the same in Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah. What changes the result is the type of business, not the emirate: Qualifying Free Zone Persons and large multinational groups follow other rules.
VAT is separate: add or remove 5% with the VAT calculator.
Frequently asked questions
How do I do a corporate tax computation in the UAE?expand_more
Start from the accounting net profit in your financial statements. Add back expenses that are not deductible, such as half of entertainment costs (Article 32) and fines and penalties (Article 33). Take out exempt income, such as qualifying dividends. Deduct tax losses brought forward, up to 75% of the taxable income (Article 37). Then apply 0% to the first AED 375,000 and 9% to the rest.
Is corporate tax different in Abu Dhabi, Dubai or other emirates?expand_more
No. It is a federal tax under Federal Decree-Law No. 47 of 2022, run by the Federal Tax Authority, so the same rates and computation apply in Abu Dhabi, Dubai, Sharjah and every other emirate. Qualifying Free Zone Persons have their own regime, which this calculator does not cover.
How much of a tax loss can I use in one year?expand_more
At most 75% of taxable income in a tax period, and you must use losses up to that limit before carrying any on. In the FTA's example, AED 6,000,000 of losses against AED 5,000,000 of taxable income uses AED 3,750,000 and leaves AED 1,250,000 taxed, so the tax is AED 78,750.
What is the corporate tax rate in the UAE?expand_more
0% on taxable income up to AED 375,000 and 9% on the part above it. It applies to tax periods starting on or after 1 June 2023 (Federal Tax Authority, Corporate Tax General Guide).
Is the 9% charged on all profit once I pass AED 375,000?expand_more
No. Only the part above AED 375,000 is taxed at 9%. On AED 1,000,000 of taxable income the tax is (1,000,000 − 375,000) × 9% = AED 56,250.
Do employees pay corporate tax on their salary?expand_more
No. The FTA guide says employment income is outside the scope of corporate tax. Corporate tax applies to businesses, including individuals who run a business with turnover above AED 1,000,000 in a calendar year.
What is Small Business Relief?expand_more
A resident business with revenue of AED 3,000,000 or less in the tax period and every earlier period can elect to be treated as having no taxable income, so it pays no corporate tax. It applies to tax periods ending on or before 31 December 2026, and it is not available to members of a large multinational group or to Qualifying Free Zone Persons.
Do I still have to register if I use Small Business Relief?expand_more
Yes. It must still register for corporate tax, file a (simplified) tax return and keep records, but does not have to calculate its taxable income or pay tax.
When is corporate tax due?expand_more
The return must be filed and the tax paid within nine months of the end of the tax period.
Is accounting profit the same as taxable income?expand_more
Not always. Taxable income is accounting net profit after adjustments set by the Corporate Tax Law. The "Accounting profit" mode handles the common ones: entertainment, fines, exempt income and losses. Others, such as interest capping and transfer pricing, need an accountant.
Source
UAE Federal Tax Authority (tax.gov.ae): Corporate Tax General Guide (CTGGCT1) for the 0% and 9% rates and the AED 375,000 threshold, and Corporate Tax Guide: Small Business Relief (CTGSBR1), citing Ministerial Decision No. 73 of 2023, for the AED 3,000,000 revenue limit and the 31 December 2026 end date. The computation steps follow sections 6.2.2, 6.5 and 6.7.1 of the General Guide (Articles 32, 33 and 37 of the Corporate Tax Law). Always confirm with the Federal Tax Authority or a tax adviser. Checked 18 October 2026.
Read the official text:FTA Corporate Tax General Guide (PDF) · FTA Small Business Relief Guide (PDF)