# UAE foreign tax credit calculator

> UAE resident companies taxed on foreign income can deduct the foreign tax paid on it from their UAE corporate tax, but only up to the UAE tax due on that same income. Any excess foreign tax is lost: it cannot be refunded or carried forward.

Interactive calculator: https://www.countify.ae/tools/foreign-tax-credit-calculator · Updated 2026-10-14 · Countify UAE

## Credit on AED 500,000 of foreign income

UAE-source income of AED 800,000.

| Foreign tax paid | Foreign tax credit | Foreign tax not creditable | UAE corporate tax payable |
| --- | --- | --- | --- |
| AED 20,000 | AED 20,000.00 | AED 0.00 | AED 63,250.00 |
| AED 45,000 | AED 45,000.00 | AED 0.00 | AED 38,250.00 |
| AED 100,000 | AED 45,000.00 | AED 55,000.00 | AED 38,250.00 |

The credit can never exceed the UAE tax on the same income (9% here).

## How the credit is limited

The credit for each item of foreign income is the lower of the foreign tax actually paid and the UAE corporate tax attributable to that income. With profits above AED 375,000, the UAE tax on extra foreign income is 9%, so foreign tax above 9% goes unrelieved.

## Evidence and treaties

Keep tax certificates or assessment notices from the foreign authority. Where a double tax treaty reduces withholding tax abroad, claim the treaty rate first; the UAE only credits tax that was properly payable. A UAE [tax residency certificate](https://www.countify.ae/tools/tax-residency-checker) is usually needed to claim treaty rates.

## Legal basis

- Federal Decree-Law No. 47 of 2022, Article 47 (https://mof.gov.ae/corporate-tax/)

## Frequently asked questions

### Can unused foreign tax credit be carried forward in the UAE?

No. Any foreign tax above the UAE tax on the same income is lost.

### Does the UAE have double tax treaties?

Yes, over 140, including with the UK, India and most of Europe.