How UAE Corporate Tax is Calculated
The UAE Corporate Tax system applies a 0% tax rate on taxable profits up to AED 375,000 and a 9% corporate tax rate on profits exceeding AED 375,000. This calculator provides an estimated corporate tax amount based on your company's taxable profit.
0% Corporate Tax
Businesses with taxable profits up to AED 375,000 are subject to 0% corporate tax under UAE Corporate Tax regulations.
Profit ≤ AED 375,000
0% Tax
9% Corporate Tax
Taxable profits exceeding AED 375,000 are subject to a 9% corporate tax rate only on the amount above the threshold.
(Profit − AED 375,000) × 9%
9% Tax
Corporate Tax Calculation Example
Below is a simple example of how UAE Corporate Tax is calculated.
Taxable Profit
AED 600,000
Tax-Free Threshold
AED 375,000
Taxable Amount
AED 225,000
Corporate Tax
AED 20,250
AED 600,000 − AED 375,000 = AED 225,000
AED 225,000 × 9% = AED 20,250
Small Business Relief
Businesses with annual revenue of AED 3 million or less may qualify for Small Business Relief, subject to UAE FTA eligibility conditions and requirements.
Free Zone Companies
Free Zone companies may qualify for preferential corporate tax treatment on qualifying income, subject to UAE Federal Tax Authority regulations and conditions.