Calculate Your UAE Corporate Tax Liability in Seconds
Enter your taxable income below to instantly estimate your UAE corporate tax under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, administered by the Federal Tax Authority (FTA).
Taxable income = Revenue minus deductible expenses. Not gross revenue.
Total sales before deductions. Used to check Small Business Relief eligibility (AED 3,000,000 limit).
Enter your taxable income and revenue above to calculate your corporate tax.
How UAE Corporate Tax Works
The UAE introduced corporate tax through Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, administered by the Federal Tax Authority (FTA). The tax applies to financial years starting on or after 1 June 2023. The rate structure is tiered:
| Taxable Income Bracket | Tax Rate | Calculation |
|---|---|---|
| Up to AED 375,000 | 0% | No tax on the first AED 375,000 |
| Above AED 375,000 | 9% | 9% on the portion exceeding AED 375,000 |
| Qualifying Free Zone Persons | 0% / 9% | 0% on Qualifying Income, 9% on non-qualifying (no AED 375K threshold for non-qualifying) |
Worked Example
Scenario: A mainland company with taxable income of AED 900,000.
- First AED 375,000: 0% = AED 0
- AED 525,000 (900,000 − 375,000): 9% × 525,000 = AED 47,250
- Total corporate tax: AED 0 + AED 47,250 = AED 47,250
Free Zone example: A QFZP with AED 900,000 total income, of which AED 700,000 is Qualifying Income. Non-qualifying income = AED 200,000. Tax = 200,000 × 9% = AED 18,000 (the AED 375,000 threshold does not apply to non-qualifying income of a QFZP).
Small Business Relief
Under Ministerial Decision No. 73 of 2023, resident taxable persons with revenue at or below AED 3,000,000 may elect to be treated as having no taxable income — meaning their corporate tax liability is zero, even if their taxable income exceeds AED 375,000.
- Revenue threshold: Revenue must be AED 3,000,000 or less in the current and all previous tax periods.
- Resident person: Only mainland resident persons — Qualifying Free Zone Persons are NOT eligible.
- Time window: Tax periods starting on or after 1 June 2023 and ending on or before 31 December 2026. [VERIFY: whether this window has been extended — check tax.gov.ae.]
- Must elect: Not automatic — you must affirmatively elect it in your corporate tax return.
Qualifying Free Zone Persons
Free zone companies that meet the Qualifying Free Zone Person criteria under Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 265 of 2023 benefit from a 0% rate on Qualifying Income and 9% on non-qualifying income. [VERIFY: confirm these instruments are still current — check tax.gov.ae.]
- Qualifying Income: Income from Qualifying Activities (0% rate).
- Non-qualifying income: Taxed at 9% from the first dirham — the AED 375,000 threshold does NOT apply to QFZP non-qualifying income.
- Not eligible for Small Business Relief.
- Economic substance: Must maintain adequate substance in the UAE.
Common Mistakes to Avoid
- Confusing revenue with taxable income: Tax is on taxable income (revenue minus deductions), not gross revenue.
- Assuming SBR applies to free zone entities: SBR is only for mainland resident persons.
- Missing the registration deadline: Check tax.gov.ae for your applicable deadline.
- Forgetting the AED 375,000 threshold is per entity: Each taxable person gets their own zero-rate bracket.
Accuracy & Limitations
This calculator estimates headline corporate tax liability under Federal Decree-Law No. 47 of 2022. It does not account for: exempt income, transfer pricing adjustments, group relief, Domestic Minimum Top-up Tax (DMTT) for large multinationals (revenue ≥ EUR 750M), or Qualifying Free Zone income determination requiring detailed activity analysis.
Not a fit for: Multinational groups within scope of OECD Pillar Two. Consult a licensed UAE tax agent for actual filing, free zone qualifying-income determination, or amounts near thresholds.
Key Rules at a Glance
- Governing law: Federal Decree-Law No. 47 of 2022
- Regulator: Federal Tax Authority (FTA)
- Standard rate: 0% up to AED 375,000; 9% above
- Small Business Relief: 0% for revenue ≤ AED 3M (Ministerial Decision No. 73 of 2023)
- Free zone rate: 0% on Qualifying Income, 9% on non-qualifying (Cabinet Decision No. 100 of 2023)
- Effective from: Financial years starting on or after 1 June 2023
Frequently Asked Questions
Do free zone companies pay 0% corporate tax?
Qualifying Free Zone Persons can benefit from a 0% rate on Qualifying Income and 9% on non-qualifying income, per Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 265 of 2023. However, not all free zone companies automatically qualify — the entity must meet specific conditions including conducting a Qualifying Activity and maintaining adequate economic substance. Non-qualifying free zone entities are subject to the standard 0%/9% mainland rate structure.
What counts as taxable income vs. revenue?
Revenue is your total sales before deductions. Taxable income is revenue minus deductible expenses, allowances, and exemptions as defined under Federal Decree-Law No. 47 of 2022. This calculator asks for taxable income, not gross revenue.
Is Small Business Relief automatic or do I need to elect it?
Small Business Relief is not automatic — you must elect it in your corporate tax return. Under Ministerial Decision No. 73 of 2023, resident taxable persons with revenue at or below AED 3,000,000 may elect to be treated as having no taxable income. The election is available for tax periods starting on or after 1 June 2023 and ending on or before 31 December 2026.
Does this calculator account for the global minimum tax?
No. This calculator does not account for the Domestic Minimum Top-up Tax (DMTT) under the OECD Pillar Two framework, which applies to multinational groups with consolidated revenue of EUR 750 million or more. Multinational groups within scope of Pillar Two should not rely on this tool and should consult a specialist international tax advisor.
What happens if my revenue crosses AED 3 million mid-year?
Small Business Relief eligibility is based on revenue for the entire tax period, not pro-rated mid-year. If your total revenue for the tax period exceeds AED 3,000,000, you are not eligible for Small Business Relief for that period. You would then apply the standard 0%/9% rate structure to your taxable income.
When was UAE corporate tax introduced?
UAE corporate tax was introduced by Federal Decree-Law No. 47 of 2022. The tax applies to financial years starting on or after 1 June 2023. The Federal Tax Authority (FTA) is the regulator.
What is the corporate tax registration deadline?
The FTA has set different registration deadlines based on the date of incorporation/license issuance. Check tax.gov.ae for your specific deadline. Late registration may incur penalties.
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This calculator is based on Federal Decree-Law No. 47 of 2022, Ministerial Decision No. 73 of 2023, and Cabinet Decision No. 100 of 2023, issued via the UAE Ministry of Finance and the Federal Tax Authority (FTA). This tool provides an estimate of headline corporate tax liability and does not constitute legal or tax advice. For specific cases, consult a licensed UAE tax agent or visit tax.gov.ae.
[VERIFY: Confirm Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 265 of 2023 are still current at time of publishing.]
[VERIFY: Confirm whether Small Business Relief window has been extended beyond 31 December 2026.]
Last Verified: [DATE — to be set before publishing]