UAE corporate tax calculator
UAE corporate tax is 0% on the first AED 375,000 of taxable income and 9% on the rest, so a company with AED 1,000,000 of taxable income pays AED 56,250. Businesses with revenue of AED 3 million or less can elect Small Business Relief and pay nothing for tax periods ending by 31 December 2029, and Qualifying Free Zone Persons pay 0% on qualifying income.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
Accounting profit after tax adjustments.
Corporate tax payable
AED 20,250.00
Effective rate: 3.38%
You can elect Small Business Relief for this period and pay AED 0. You must still register and file a return, and losses from relief years can't be carried forward.
Results are estimates for general information, not tailored advice.
Corporate tax by taxable income
Tax due at standard rates, before any Small Business Relief.
| Taxable income | Corporate tax | Effective rate |
|---|---|---|
| AED 300,000.00 | AED 0.00 | 0.00% |
| AED 375,000.00 | AED 0.00 | 0.00% |
| AED 500,000.00 | AED 11,250.00 | 2.25% |
| AED 1,000,000.00 | AED 56,250.00 | 5.63% |
| AED 2,000,000.00 | AED 146,250.00 | 7.31% |
| AED 5,000,000.00 | AED 416,250.00 | 8.33% |
| AED 10,000,000.00 | AED 866,250.00 | 8.66% |
The first AED 375,000 is always tax-free, so the effective rate stays below 9%.
How UAE corporate tax is calculated
Corporate tax applies to taxable income: the accounting profit in your financial statements, adjusted for items such as non-deductible expenses, exempt income and tax losses. The first AED 375,000 of taxable income is taxed at 0% and everything above it at 9%.
- Tax = (taxable income − AED 375,000) × 9%.
- Taxable income of AED 375,000 or less means no tax, but you must still register and file a return.
Small Business Relief, now to 2029
If your revenue is AED 3 million or less in the current tax period and every earlier one, you can elect to be treated as having no taxable income. Ministerial Decision No. 131 of 2026 extended the relief to tax periods ending on or before 31 December 2029. It is not available to Qualifying Free Zone Persons or members of large multinational groups, and losses from relief years cannot be carried forward. Read our Small Business Relief guide.
Free zone companies
A Qualifying Free Zone Person pays 0% on qualifying income and 9%, with no 0% band, on income that never qualifies, such as profits of a mainland branch. It must keep adequate substance, prepare audited financial statements and keep non-qualifying revenue within the de minimis limit: the lower of 5% of total revenue or AED 5 million. Failing a condition means standard rates for that tax period and the next four. See our Qualifying Free Zone Person guide.
What the calculator leaves out
- The adjustments from accounting profit to taxable income.
- Tax losses brought forward, which can offset up to 75% of taxable income in a period.
- Tax groups, transfer pricing, and the 15% domestic minimum top-up tax for groups with revenue of EUR 750 million or more.
- Freelancers and other natural persons, who are in scope only when business turnover exceeds AED 1 million in a calendar year.
Frequently asked questions
What is the corporate tax rate in the UAE?
0% on taxable income up to AED 375,000 and 9% above it, for tax periods starting on or after 1 June 2023. Large multinational groups can also pay a 15% domestic minimum top-up tax.
How much corporate tax is due on AED 1 million of profit?
On taxable income of AED 1,000,000, tax is (1,000,000 − 375,000) × 9% = AED 56,250, an effective rate of 5.6%.
Has Small Business Relief been extended?
Yes. Ministerial Decision No. 131 of 2026 extended it to tax periods ending on or before 31 December 2029. The AED 3 million revenue limit is unchanged.
Do I still file a return if I owe no corporate tax?
Yes. Every taxable person must register and file a return within 9 months of the end of each tax period, even when the tax is nil or Small Business Relief applies. Use our tax deadline checker for your dates.
Do free zone companies pay corporate tax?
A Qualifying Free Zone Person pays 0% on qualifying income if it meets every condition; other free zone companies pay the standard 0% and 9% rates. Both must register and file.
Corporate tax registration and returns
We prepare your taxable income computation, check reliefs such as Small Business Relief and QFZP status, and file your return on EmaraTax.