UAE taxable income calculator
UAE taxable income starts with accounting profit under IFRS. You then add back non-deductible costs (50% of client entertainment, fines and penalties, donations to non-qualifying bodies) and deduct exempt income (such as qualifying dividends). Corporate tax is 9% of taxable income above AED 375,000.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
50% is added back.
Not deductible.
For example corporate tax itself, bribes, or dividends paid.
- Total add-backs
- AED 45,000.00
- Total deductions
- AED 40,000.00
- Taxable income
- AED 905,000.00
- Corporate tax (9% above AED 375,000)
- AED 47,700.00
This covers the most common adjustments. Interest limitation, transfer pricing, unrealised gains and losses relief can change the figure.
Results are estimates for general information, not tailored advice.
From accounting profit to corporate tax
AED 60,000 client entertainment, AED 5,000 fines, AED 10,000 donations, AED 40,000 exempt dividends.
| Accounting profit | Taxable income | Corporate tax (9% above AED 375,000) |
|---|---|---|
| AED 300,000 | AED 305,000.00 | AED 0.00 |
| AED 900,000 | AED 905,000.00 | AED 47,700.00 |
| AED 2,000,000 | AED 2,005,000.00 | AED 146,700.00 |
Entertainment is the add-back most SMEs miss.
The common adjustments
Most SME tax computations need only a handful of adjustments:
- Add back 50% of client entertainment (entertainment calculator)
- Add back fines and penalties (but not compensation for breach of contract)
- Add back donations to bodies that are not Qualifying Public Benefit Entities
- Add back corporate tax itself, dividends paid and bribes
- Deduct dividends and gains covered by the participation exemption
- Apply interest limitation and tax losses where relevant
Getting the starting point right
The return starts from accounting profit in financial statements prepared under IFRS (or IFRS for SMEs where revenue is below AED 50 million). If your bookkeeping is behind or not IFRS-based, the tax figure will be wrong too. Our bookkeeping and year-end accounts services fix that first.
Legal basis
We review this calculator whenever the FTA or Ministry of Finance issues a new decision or clarification.
Frequently asked questions
Is accounting profit the same as taxable income in the UAE?
No. Taxable income is accounting profit adjusted for non-deductible expenses, exempt income, interest limits and losses.
Are fines deductible for UAE corporate tax?
No. Fines and penalties are not deductible, except amounts awarded as compensation for damages or breach of contract.
Is depreciation deductible?
Generally yes, as recorded in IFRS accounts. There are no separate capital allowances in the UAE.
Corporate tax registration and returns
We register you, prepare the tax computation and file your corporate tax return, with Small Business Relief, QFZP and loss elections handled correctly.