UAE Corporate Tax Calculator: 9% Tax on Business Profit
Work out the UAE corporate tax — the 9% federal tax on business profits introduced for financial years starting on or after 1 June 2023 — and the after-tax profit your business keeps.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Corporate tax | Profit plus tax figure |
|---|---|---|
| 9% of AED 500,000 (AED 45,000) | $45,000.00 | $545,000.00 |
| 9% of AED 125,000 (above threshold) | $11,250.00 | $136,250.00 |
| 9% of AED 1,000,000 | $90,000.00 | $1,090,000.00 |
| 9% of AED 2,000,000 | $180,000.00 | $2,180,000.00 |
How This Calculator Works
Enter your taxable profit and the rate (9%). The calculator shows the tax due; subtract it from profit to see the net. UAE corporate tax applies a 0% rate to the first AED 375,000 of taxable income and 9% above that — so to be precise, apply the 9% only to profit exceeding the threshold, which this calculator does when you enter the above-threshold amount.
The Formula
Percentage Add-On
Rate is the tax or tip percentage applied to the amount
Worked Example
At 9% on AED 500,000 of taxable profit, the corporate tax is AED 45,000, leaving AED 455,000. The UAE introduced a federal corporate tax effective for financial years beginning on or after 1 June 2023 — a major shift for a jurisdiction long known as tax-free. The standard rate is 9%, but a 0% band applies to the first AED 375,000 of taxable income to support small businesses and start-ups. So a company with AED 500,000 of profit pays nothing on the first AED 375,000 and 9% on the remaining AED 125,000 — AED 11,250 — making the headline 9%-on-everything figure an overstatement unless you isolate the above-threshold profit.
Key Insight
UAE corporate tax marked the end of the Emirates' fully tax-free reputation for businesses, and the structure has several important features. The headline: 9% on taxable income above AED 375,000, with a 0% rate on income up to that threshold — a deliberately small-business-friendly design, so the effective rate is well below 9% for smaller companies (this calculator's flat 9% therefore overstates the bill unless you apply it only to the above-threshold slice). Scope: it applies to most businesses and commercial activities, including foreign companies with a UAE permanent establishment, but excludes individuals' employment salaries, personal investment income, and (typically) real estate income earned personally. Free Zones — central to the UAE economy — get special treatment: a 'Qualifying Free Zone Person' can still enjoy 0% on its 'qualifying income' if it meets substance and other conditions, with 9% applying to non-qualifying income, so Free Zone benefits were preserved but conditioned rather than removed. Compliance is now real: businesses must register for corporate tax, maintain proper financial records, and file an annual return (generally within nine months of the financial year-end), even if much of their income falls in the 0% band. There's also a separate layer for the largest multinationals: in line with the OECD global minimum tax (Pillar Two), very large groups face a top-up toward a 15% effective rate. Other points: small-business relief can let qualifying small companies elect to be treated as having no taxable income for a period, and tax grouping and loss carry-forward rules exist. This calculator shows the 9% on the profit you enter and the after-tax amount; for an accurate figure, apply the 0% threshold to the first AED 375,000, check Free Zone qualifying-income status, and confirm registration and filing obligations regardless of the tax due.
UAE Corporate Tax structure (effective 1 June 2023)
STANDARD RATES.
0% on taxable income up to AED 375,000.
9% on taxable income exceeding AED 375,000.
EFFECTIVE TAX RATE on AED 500K profit = (AED 125K × 9%) / AED 500K = 2.25%.
EFFECTIVE on AED 5M profit = (AED 4,625K × 9%) / AED 5M = 8.33%.
Substantial — UAE remains one of lowest CT jurisdictions globally.
QUALIFYING FREE ZONE PERSONS (QFZP).
0% on qualifying income from qualifying activities.
Conditions: maintain adequate substance in Free Zone, derive qualifying income, comply with TP / arm's length, maintain audited financials, not elected out of QFZP regime.
QUALIFYING ACTIVITIES (Cabinet Decision 100 of 2023). Manufacturing, processing, holding shares, fund management, treasury services to related parties, etc.
EXCLUDED ACTIVITIES (always 9%). Transactions with natural persons (excl. specific activities), banking, insurance, finance leasing (with exceptions), interaction with mainland.
Non-qualifying income: 9% standard.
SMALL BUSINESS RELIEF.
Available for tax periods ending on or before 31 Dec 2026.
Election available if revenue ≤ AED 3,000,000 in current AND all previous tax periods.
Taxable income deemed AED 0. Substantial relief for small businesses.
PARTICIPATION EXEMPTION. Dividends and capital gains from qualifying shareholdings (5%+, 12 months holding) — exempt.
FOREIGN TAX CREDIT. Available for foreign tax suffered on foreign-source income.
TAX GROUPING. UAE entities under common 95%+ ownership can form tax group (single CT return).
International dimensions — DMTT, TP, registration
DOMESTIC MINIMUM TOP-UP TAX (DMTT) — IN FORCE 1 JAN 2025.
15% effective rate floor for Multinational Enterprises (MNEs) with consolidated revenue ≥ €750M (2 of last 4 fiscal years).
Implements Pillar Two of OECD/G20 BEPS 2.0.
UAE MNE subsidiaries taxed at 15% floor if effective tax rate below 15%.
Substantial impact — large multinationals lose 9% benefit.
TRANSFER PRICING.
Applies to related party transactions (>AED 4M annual aggregate per related party or AED 500K per transaction).
Documentation requirements: Master file, Local file (if revenue thresholds met), CbCR (if MNE with consolidated revenue ≥AED 3.15B).
Arm's length principle aligned with OECD TP Guidelines.
REGISTRATION REQUIREMENT.
All taxable persons (mainland and Free Zone) must register with FTA — substantial.
Deadlines tiered by license issue date. Late registration penalty AED 10,000.
RETURN FILING.
Annual CT return within 9 months of tax period end.
Tax payment due same date.
First period for many: 1 Jan 2024 - 31 Dec 2024 → return due 30 Sep 2025.
RECORD-KEEPING. 7 years.
STRATEGIC CONSIDERATIONS.
(1) Free Zone substance critical for QFZP — substantive activities, employees, office.
(2) Permanent Establishment (PE) rules for foreign persons doing business in UAE.
(3) Withholding tax 0% currently — substantial benefit for outbound payments.
UAE Corporate Tax rates and key thresholds (2024)
Reference UAE CT rates and rules.
| Item | Detail |
|---|---|
| Standard CT rate (above threshold) | 9% |
| 0% threshold | AED 375,000 taxable income |
| QFZP qualifying income | 0% |
| QFZP non-qualifying income | 9% |
| Small Business Relief (until 2026) | Revenue ≤ AED 3M = AED 0 taxable income |
| DMTT (Pillar Two MNEs) | 15% (from 1 Jan 2025) |
| DMTT threshold | Consolidated revenue ≥ €750M |
| Participation exemption (qualifying shareholding) | Exempt |
| Withholding tax | 0% |
| Return filing deadline | 9 months post tax period end |
| TP documentation threshold | AED 4M annual / AED 500K per transaction |
Federal Decree-Law No. 47 of 2022 effective 1 June 2023. UAE remains low-tax jurisdiction despite CT introduction. QFZP regime substantial benefit (0% on qualifying income) with substance requirements. DMTT 15% from 2025 affects large MNEs only. Small Business Relief substantial for SMEs revenue ≤AED 3M (until 31 Dec 2026).
Frequently Asked Questions
How is UAE corporate tax calculated?
Apply 9% to taxable profit above AED 375,000 (the first AED 375,000 is taxed at 0%). On AED 500,000 of profit, only the AED 125,000 above the threshold is taxed — AED 11,250. Entering AED 500,000 at a flat 9% gives AED 45,000, which overstates the bill unless you isolate the above-threshold profit.
What is UAE corporate tax?
A federal tax on business profits introduced for financial years starting on or after 1 June 2023 — a major change for the long tax-free UAE. The standard rate is 9%, with a 0% band on the first AED 375,000 of taxable income to support small businesses and start-ups.
Does it apply to Free Zone companies?
Free Zones get special treatment. A 'Qualifying Free Zone Person' meeting substance and other conditions can still enjoy 0% on its qualifying income, with 9% on non-qualifying income. So Free Zone benefits were preserved but made conditional, rather than abolished — the exact status depends on meeting the qualifying criteria.
Is personal income taxed?
No — the corporate tax applies to businesses and commercial activities, not to individuals' employment salaries, personal investment income, or (typically) personally-held real estate income. The UAE still has no personal income tax; corporate tax targets business profits, including foreign firms with a UAE permanent establishment.
Do I have to register even if I owe nothing?
Generally yes. Businesses within scope must register for corporate tax, keep proper financial records, and file an annual return (usually within nine months of the financial year-end), even if their profit falls within the 0% band. Small-business relief may let qualifying small companies elect to be treated as having no taxable income.
When is this calculator unreliable?
Less reliable when entity is Free Zone QFZP (qualifying income 0% if conditions met — substantial planning), when Small Business Relief elected (revenue ≤AED 3M deemed taxable income nil — until tax periods ending Dec 2026), when Multinational Top-Up Tax (DMTT 15%) applies from Jan 2025 for MNEs with consolidated revenue ≥€750M, when transfer pricing rules require arm's length adjustments (related party transactions above thresholds), or when participation exemption applies (qualifying shareholdings ≥5% held 12 months — dividends/gains exempt).
References & Authoritative Sources
- UAE Federal Tax Authority (FTA) — Corporate Tax · consulted June 1, 2026 · Federal tax authority
- Federal Decree-Law No. 47 of 2022 — Corporate Tax Law · consulted June 1, 2026 · Primary legislation
- UAE Ministry of Finance — Corporate Tax Guidance · consulted June 1, 2026 · Federal ministry
Related Calculators
Methodology & Review
UAE Corporate Tax (Federal Decree-Law No. 47 of 2022) effective for tax periods starting on or after 1 June 2023. Standard 9% on taxable profits exceeding AED 375,000; 0% on first AED 375,000. Qualifying Free Zone Persons (QFZP) 0% on qualifying income from qualifying activities + 9% on non-qualifying. Calculator returns CT liability. Small Business Relief AED 3M revenue threshold (until 2026) — taxable income deemed nil if elected. RELIABILITY: Reliable for standard mainland UAE entities with documented financials per IFRS. Less reliable when (a) Free Zone classification (QFZP rules complex — substantial 0% benefits if qualifying activities/income); (b) Small Business Relief elected (revenue ≤AED 3M, period until 2026); (c) Multinational Top-Up Tax (DMTT 15% from 2025 for MNEs with consolidated revenue €750M+); (d) Transfer pricing applies (related party transactions); (e) tax group / participation exemption mechanics.
Updated