# UAE tax loss relief calculator

> UAE companies can carry tax losses forward indefinitely, but each year they can only offset losses against 75% of taxable income. So at least 25% of profit stays taxable (subject to the AED 375,000 0% band) even when large losses are available.

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

## Using AED 1.2m of losses

The 75% cap means some tax is usually still due.

| Taxable income | Losses used (max 75% of income) | Corporate tax | Losses still to carry forward |
| --- | --- | --- | --- |
| AED 400,000 | AED 300,000.00 | AED 0.00 | AED 900,000.00 |
| AED 1,000,000 | AED 750,000.00 | AED 0.00 | AED 450,000.00 |
| AED 3,000,000 | AED 1,200,000.00 | AED 128,250.00 | AED 0.00 |

With income of AED 1m, only AED 750,000 of losses can be used this year.

## The rules for using losses

Losses arising from the first corporate tax period onwards can be carried forward. Losses from before corporate tax applied, from exempt activities, or from a year in which you elected Small Business Relief cannot be used.

- Offset up to 75% of taxable income a year
- No time limit
- Lost if ownership changes by more than 50%, unless the business continues the same or similar activities

## Moving losses within a group

Companies under 75% common ownership can transfer losses to each other, within the same 75% cap. Companies owned 95% or more can instead form a [tax group](https://www.countify.ae/tools/tax-group-checker).

## Legal basis

- Federal Decree-Law No. 47 of 2022, Articles 37–39 (https://mof.gov.ae/corporate-tax/)

## Frequently asked questions

### How long can I carry forward tax losses in the UAE?

Indefinitely, as long as the ownership and business continuity conditions are met.

### Can losses wipe out all my taxable income?

No. Losses can offset at most 75% of taxable income in a tax period.