Federal Tax Authority (FTA) & Ministerial Decision 73 Compliant
UAE Corporate Tax Exemption & Small Business Guide
Authoritative handbook for freelancers, sole proprietors, and SMEs — AED 375,000 zero-tax threshold, AED 3 Million Small Business Relief (SBR), and EmaraTax filing workflows.
UAE Corporate Tax & SBR Relief Evaluator
Calculate estimated Corporate Tax due and verify Small Business Relief (SBR) election eligibility.
Total gross business turnover in AED
Net profit after accounting deductions
0% Corporate Tax Rate Applies (Below AED 375k Profit)
Your taxable net profit (AED 300,000) is at or below the AED 375,000 threshold. Under Federal Decree-Law No. 47 of 2022, 0% Corporate Tax applies.
Estimated Tax Payable: AED 0 Corporate Tax Payable.
UAE Corporate Tax Thresholds Breakdown
| Category | Revenue / Profit Limit | Effective Tax Rate |
|---|---|---|
| Zero Tax Threshold | Net Profit up to AED 375,000 | 0% Tax Rate |
| Small Business Relief (SBR) | Gross Revenue ≤ AED 3,000,000 | 0% Tax Rate (Elective) |
| Standard Rate | Net Profit > AED 375,000 (Revenue > AED 3M) | 9% on profit above AED 375k |
Frequently Asked Questions
Under UAE Corporate Tax Federal Decree-Law No. 47 of 2022, taxable net income up to AED 375,000 is taxed at 0%. Net income exceeding AED 375,000 is subject to a standard 9% tax rate.
Under Ministerial Decision No. 73 of 2023, UAE resident businesses and freelancers with gross revenue of AED 3,000,000 or less in a tax period can elect for Small Business Relief (SBR), resulting in 0% Corporate Tax regardless of profit amount.