UAE Corporate Tax Calculator
Estimate what a mainland company or a free zone company owes. Enter your revenue and taxable profit and see the 0% and 9% brackets, Small Business Relief, and the free zone de-minimis test applied properly.
Your figures
Small Business Relief is a revenue test, so this figure decides whether the relief is open to you at all.
The first AED 375,000 of taxable profit is taxed at 0% and profit above that at 9%. Small Business Relief is a revenue test, not a profit test, and it ends with tax periods ending on or before 31 December 2026. Sources: Ministerial Decision No. 73 of 2023 and Cabinet Decision No. 116 of 2022.
Read the detail in our UAE Corporate Tax guide.
Corporate Tax Due
AED 56,250
Effective tax rate: 5.63%
An estimate for general guidance, not tax advice. Rates and thresholds follow Federal Decree-Law No. 47 of 2022, Cabinet Decision No. 116 of 2022, Ministerial Decision No. 73 of 2023 and Ministerial Decision No. 265 of 2023. It works from the revenue and profit you enter and does not model group relief, carried forward losses, exempt income, permanent establishment income, transfer pricing adjustments or the domestic minimum top-up tax for large multinational groups. In free zone mode it treats the figures you enter as both revenue and taxable base, which real accounts will not. Confirm your position with a licensed UAE tax agent or the Federal Tax Authority.
Corporate Tax questions
What is the UAE Corporate Tax rate?+
0% on the first AED 375,000 of taxable income and 9% above that, under Federal Decree-Law No. 47 of 2022 with the threshold set by Cabinet Decision No. 116 of 2022. A separate domestic minimum top-up tax can apply to very large multinational groups, which this calculator does not model.
Do free zone companies pay Corporate Tax?+
A Qualifying Free Zone Person pays 0% on qualifying income and 9% on income that is not qualifying income. Note that the AED 375,000 zero band does not shelter a QFZP's non-qualifying income, which is why the free zone mode of this calculator charges 9% on it from the first dirham.
What is the de-minimis threshold and why does it matter so much?+
Ministerial Decision No. 265 of 2023 sets it at 5% of total revenue or AED 5,000,000, whichever is lower. Going above it does not simply tax the excess. Article 5(2) of that decision says the company ceases to be a Qualifying Free Zone Person from the beginning of that tax period and for the four tax periods after it, so standard rates apply to all taxable income for five periods. It is the single largest swing in a free zone tax bill, which is why this calculator applies the test rather than only mentioning it.
What is Small Business Relief and who can elect it?+
An elective relief under Ministerial Decision No. 73 of 2023 that treats a resident business as having no taxable income for a tax period. Revenue must be at or under AED 3,000,000 in the relevant tax period and in every previous tax period, and once revenue has passed that figure in any earlier period the election is closed permanently. It is not open to a Qualifying Free Zone Person, nor to a constituent company of a multinational enterprises group. It is a revenue test, not a profit test.
When does Small Business Relief end?+
The AED 3,000,000 threshold applies to tax periods commencing on or after 1 June 2023 and continues only for tax periods that end on or before 31 December 2026. Businesses that have relied on it should plan for tax periods after that date on the normal 0% and 9% basis.
Is there a downside to electing Small Business Relief?+
Yes, and it is easy to miss. Under Articles 4 and 5 of Ministerial Decision No. 73 of 2023, tax losses and net interest expenditure arising in a tax period where the relief is claimed cannot be carried forward to later periods. In a loss-making year the election can cost more than it saves.
Does this calculator give me my actual tax bill?+
No. It is an estimate for general guidance from the figures you enter. It does not model group relief, carried forward losses, exempt income, permanent establishment income, transfer pricing adjustments or the domestic minimum top-up tax. Confirm your position with a licensed UAE tax agent or the Federal Tax Authority.