Federal Decree-Law No. 47 of 2022
UAE corporate tax calculator
Corporate tax is 0% on the portion of taxable income up to AED 375,000 and 9% on the portion above it. On taxable income of AED 1,000,000 that is AED 56,250, an effective rate of 5.63%. Enter your own figures to see the split, including Small Business Relief and the free zone position.
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UAE corporate tax by taxable income, standard taxable person
Last updated
How the 0% band and the 9% rate combine at different levels of taxable income for a standard taxable person with no relief elected. The effective rate rises towards 9% but never reaches it, because the first AED 375,000 is always free.
Computed with the calculator on this page from Article 3 of Federal Decree-Law No. 47 of 2022 and the AED 375,000 threshold set by Cabinet Decision No. 116 of 2022: 0% on the first AED 375,000 of taxable income, 9% on the rest. Standard taxable person, no Small Business Relief, no free zone qualifying income, no top-up tax. Effective rate rounded to two decimal places.
| Taxable income | Taxed at 0% | Taxed at 9% | Corporate tax | Effective rate | Profit after tax |
|---|---|---|---|---|---|
| AED 200,000 | AED 200,000 | AED 0 | AED 0 | 0% | AED 200,000 |
| AED 375,000 | AED 375,000 | AED 0 | AED 0 | 0% | AED 375,000 |
| AED 500,000 | AED 375,000 | AED 125,000 | AED 11,250 | 2.25% | AED 488,750 |
| AED 1,000,000 | AED 375,000 | AED 625,000 | AED 56,250 | 5.63% | AED 943,750 |
| AED 5,000,000 | AED 375,000 | AED 4,625,000 | AED 416,250 | 8.33% | AED 4,583,750 |
| AED 10,000,000 | AED 375,000 | AED 9,625,000 | AED 866,250 | 8.66% | AED 9,133,750 |
- A UAE business with taxable income of AED 1,000,000 pays AED 56,250 of corporate tax, an effective rate of 5.63%, because the first AED 375,000 is taxed at 0%.
- The AED 375,000 threshold is worth AED 33,750 of tax a year to every standard taxable person whose taxable income reaches it, and it applies once per person however many businesses that person runs.
- A Qualifying Free Zone Person pays 9% on taxable income that is not Qualifying Income with no AED 375,000 band, because the threshold sits in Article 3(1) of the Corporate Tax Law and the free zone rate sits in Article 3(2).
Cite this page
“UAE corporate tax by taxable income, standard taxable person”, UAE Corporate Tax Calculator, https://uaecorporatetaxcalculator.com/ (updated 2026-08-15). Computed with the calculator on this page from Article 3 of Federal Decree-Law No. 47 of 2022 and the AED 375,000 threshold set by Cabinet Decision No. 116 of 2022: 0% on the first AED 375,000 of taxable income, 9% on the rest. Standard taxable person, no Small Business Relief, no free zone qualifying income, no top-up tax. Effective rate rounded to two decimal places.
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Guides
Every figure sourced and dated.
What is the UAE corporate tax rate? 0%, 9% and who pays
The UAE corporate tax rate is 0% on taxable income up to AED 375,000 and 9% above it. Who is a taxable person, who is exempt, and where the 15% top-up tax fits.
UAE Small Business Relief: the AED 3 million revenue test
Small Business Relief treats an eligible UAE resident person as having no taxable income where revenue stays under AED 3 million. Conditions, exclusions and end date.
Free zone corporate tax in the UAE: the 0% qualifying income rule
Free zone companies are inside the UAE corporate tax regime. What a Qualifying Free Zone Person is, why 0% applies only to Qualifying Income, and where 9% still bites.
UAE corporate tax registration and filing deadlines
Every taxable person including free zone companies must register for UAE corporate tax. When returns and payment are due, and what records the FTA expects you to keep.
The basis
- Article 3 of the Corporate Tax Law imposes corporate tax at 0% on the portion of taxable income not exceeding the amount set by Cabinet decision and 9% on taxable income above it (Federal Decree-Law No. 47 of 2022).
- That amount is AED 375,000, fixed by Cabinet Decision No. 116 of 2022, and it applies once per taxable person for the tax period whether or not the person carries on several businesses (Ministry of Finance). Splitting a business artificially to multiply the threshold is treated as a corporate tax advantage under the general anti-abuse rule.
- Small Business Relief treats an eligible resident person as having derived no taxable income where revenue is AED 3,000,000 or less in the relevant tax period and in every previous tax period. It must be elected in the tax return, and a Qualifying Free Zone Person or a member of a multinational group with consolidated revenue above AED 3.15 billion cannot elect it (Federal Tax Authority).
- Small Business Relief has an end date. The Ministry of Finance states that the AED 3 million revenue threshold applies to tax periods starting on or after 1 June 2023 and will only continue to apply to subsequent tax periods that end before or on 31 December 2026 (Ministry of Finance). Check the position for any tax period ending after that date before relying on the relief.
- For a Qualifying Free Zone Person, Article 3(2) charges 0% on Qualifying Income and 9% on taxable income that is not Qualifying Income. The AED 375,000 threshold sits in Article 3(1) and is not repeated in Article 3(2), so the calculator applies no 0% band to a free zone person's non-qualifying income.
- Where Small Business Relief is elected, other exemptions, reliefs and deductions are not available for that tax period, and losses and disallowed net interest expenditure are affected. The calculator shows tax of nil and does not model those consequences.
- Large multinational groups face a separate charge. The UAE domestic minimum top-up tax applies to members of groups with annual global revenues of EUR 750 million or more in at least two of the four preceding financial years, for financial years starting on or after 1 January 2025, using a minimum rate of 15% (Ministry of Finance, Cabinet Decision No. 142 of 2024). This calculator does not model it.
- The calculator starts from taxable income you supply. Arriving at taxable income from accounting profit is the hard part of a UAE corporate tax computation and involves exempt income, interest limitation, transfer pricing and other adjustments.
UAE Corporate Tax Calculator is an independent information site operated by Ellul Solutions Ltd. It is not affiliated with the Federal Tax Authority, the Ministry of Finance or any other government body, and nothing here is tax or legal advice. UAE corporate tax is a new regime that has been amended several times, verify every figure against the Federal Tax Authority and your own tax adviser before filing.
Common questions
How do I calculate corporate tax in the UAE?
Start from taxable income for the tax period. The first AED 375,000 is taxed at 0% and everything above it at 9%. On AED 1,000,000 of taxable income that gives AED 56,250, an effective rate of 5.63%.
What is the UAE corporate tax threshold?
AED 375,000 of taxable income, set by Cabinet Decision No. 116 of 2022 for the purposes of Article 3 of the Corporate Tax Law. It applies once per taxable person for the tax period, whatever number of businesses that person runs.
Is Small Business Relief still available?
The Federal Tax Authority was still describing the relief as available in August 2026, at revenue of AED 3 million or less for the relevant and all previous tax periods. The Ministry of Finance stated when the decision was issued that the threshold applies only to tax periods ending on or before 31 December 2026, so verify the position for later periods.
Do free zone companies pay 0% corporate tax?
A Qualifying Free Zone Person pays 0% on Qualifying Income only. Taxable income that is not Qualifying Income is taxed at 9%, with no AED 375,000 band, and free zone companies must register and file like everyone else.
Is there a 15% UAE corporate tax?
Not as a corporate tax rate. A separate domestic minimum top-up tax applies to members of multinational groups with global revenues of EUR 750 million or more, for financial years starting on or after 1 January 2025, at a minimum rate of fifteen percent under Cabinet Decision No. 142 of 2024.
What is taxable income for UAE corporate tax?
Accounting income, meaning net profit or loss before tax per the financial statements, adjusted for income that is exempt and for expenditure that is wholly or partly non-deductible. The adjustments are the difficult part of the computation.
Sources
- Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses
- Cabinet Decision No. 116 of 2022 on the annual taxable income subject to corporate tax
- Federal Tax Authority. Small Business Relief
- Ministry of Finance, decision on Small Business Relief for corporate tax purposes
- Ministry of Finance. Corporate Tax in the UAE
- Ministry of Finance, UAE domestic minimum top-up tax
- Cabinet Decision No. 142 of 2024 on the imposition of top-up tax on multinational enterprises
- u.ae, the official UAE Government portal, corporate tax
Know the number before the nine months run out.
The 0% band, the 9% rate and the reliefs, applied to your own figures.
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