UAE Corporate Tax Calculator
This is an educational estimator. Enter Taxable Income rather than simply accounting net profit. The Corporate Tax Law requires specific adjustments to arrive at Taxable Income.
First AED 375,000 of Taxable Income is taxed at 0%. The remaining AED 225,000 is taxed at 9%.
UAE Corporate Tax Bands
| Taxable Income | Rate | What it means |
|---|---|---|
| Up to AED 375,000 | 0% | First portion of Taxable Income for a standard Taxable Person. |
| Above AED 375,000 | 9% | Only the portion exceeding AED 375,000 is subject to 9%. |
| Small Business Relief | Treated as no Taxable Income | Eligible Resident Person must elect and satisfy the current Revenue and exclusion conditions. |
| QFZP | 0% / 9% | 0% on Qualifying Income; generally 9% on non-qualifying Taxable Income. |
Current UAE CT Figures
| Ordinary 0% threshold: | AED 375,000 |
| Ordinary excess rate: | 9% |
| SBR Revenue condition: | AED 3,000,000 |
| Natural-person turnover: | AED 1,000,000 |
| VAT mandatory: | AED 375,000 |
| VAT voluntary: | AED 187,500 |
Revenue vs Taxable Income
Used for certain tests such as Small Business Relief. It is not the normal Corporate Tax rate base.
The accounting result before the specific tax adjustments required by the Corporate Tax Law.
The amount after applying the applicable Corporate Tax adjustments and the principal amount used for the 0% / 9% ordinary rate calculation.
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Worked Standard Corporate Tax Examples
| Taxable Income | 0% Portion | 9% Portion | CT Before Credits |
|---|---|---|---|
| AED 300,000 | AED 300,000 | AED 0 | AED 0 |
| AED 375,000 | AED 375,000 | AED 0 | AED 0 |
| AED 500,000 | AED 375,000 | AED 125,000 | AED 11,250 |
| AED 1,000,000 | AED 375,000 | AED 625,000 | AED 56,250 |
| AED 2,000,000 | AED 375,000 | AED 1,625,000 | AED 146,250 |
The AED 1 million calculation produces AED 56,250 of Corporate Tax before available tax credits and other applicable adjustments, matching the FTA's published example.
Small Business Relief (SBR)
SBR is a separate elective relief. The current FTA states that a Resident Person can elect SBR where Revenue is AED 3 million or less in the current and all previous Tax Periods covered by the rule. A QFZP and a member of a multinational group with consolidated Revenue above AED 3.15 billion cannot elect the relief.
| Requirement | Current treatment |
|---|---|
| Eligible taxpayer | Resident Person — natural or juridical person, subject to the statutory conditions. |
| Revenue | AED 3,000,000 or less in the current and all previous Tax Periods covered by the relief rules. |
| Election | The taxpayer must elect the relief for the relevant Tax Period. |
| Effect | The taxpayer is treated as having not derived any Taxable Income for the relevant Tax Period. |
| QFZP | Cannot elect Small Business Relief. |
| Current filing obligation | SBR does not remove the requirement for an eligible taxpayer to submit its required simplified Corporate Tax return. |
Qualifying Free Zone Person (QFZP)
Free Zone status does not automatically create a 0% Corporate Tax exemption. The FTA identifies QFZP conditions including adequate UAE substance, Qualifying Income, transfer-pricing compliance and no election for the full standard Corporate Tax regime.
| QFZP component | Current position |
|---|---|
| Qualifying Income | 0% Corporate Tax, subject to all QFZP requirements. |
| Other Taxable Income | Generally 9%. |
| Mainland / Non-Free Zone customer | Not automatically non-qualifying. Certain income from a Non-Free Zone Person can qualify depending on the Qualifying Activity and statutory conditions. |
| Free Zone licence alone | Does not automatically establish QFZP status. |
Natural persons, freelancers and personal income
A natural person is subject to UAE Corporate Tax only when they conduct a Business or Business Activity in the UAE and total turnover from those activities exceeds AED 1 millionduring the calendar year.
| Income / activity | Corporate Tax treatment for natural persons |
|---|---|
| Employment salary / wages | Not treated as Business or Business Activity for CT. |
| Personal investment income | Not treated as Business or Business Activity for this rule. |
| Real-estate investment income | Not treated as Business or Business Activity for this rule. |
| Freelance / business activity | Subject to CT where the natural person conducts Business or Business Activity and relevant turnover exceeds AED 1 million in the calendar year. |
Corporate Tax registration and filing
| Obligation | Current rule |
|---|---|
| Taxable Persons | Must register and obtain a Corporate Tax Registration Number within the prescribed timeframe. |
| UAE domestic-company branch | A UAE branch of a domestic juridical person is an extension of its parent/head office and is not separately registered or filed for Corporate Tax. |
| Natural person | Registration applies when the business/business-activity turnover exceeds AED 1 million in the calendar year. |
| Corporate Tax return | Generally due within 9 months after the end of the relevant Tax Period. |
| Late registration | AED 10,000 administrative penalty can apply where registration is not completed within the applicable deadline. |
UAE VAT thresholds are separate from Corporate Tax
VAT registration must not be confused with the AED 375,000 Corporate Tax threshold. For UAE-resident businesses, current FTA guidance says mandatory VAT registration applies when taxable supplies and imports exceed AED 375,000 in the previous 12 months or are expected to exceed that amount in the next 30 days.
| VAT threshold | Amount | Purpose |
|---|---|---|
| Mandatory VAT registration | AED 375,000 | Taxable supplies/imports test. |
| Voluntary VAT registration | AED 187,500 | Voluntary registration threshold. |
| Corporate Tax 0% threshold | AED 375,000 | Taxable Income rate threshold — separate tax regime. |
Frequently Asked Questions
Official primary sources
This page is an educational guide and calculator. Actual Corporate Tax depends on the taxpayer category, Taxable Income adjustments, elections, reliefs, exemptions, losses, QFZP status, Qualifying Income and other applicable provisions. Verify the current FTA rules before filing a return.