UAE Corporate Tax Calculator
Enter your profit in dirhams to see the corporate tax due, your effective rate and when to file.
How your UAE corporate tax is worked out
Taxable income = adjusted profit − losses. 0% up to AED 375,000, 9% above.
- 1
Adjust your profit
AED 1,000,000 + 0
= AED 1,000,000 - 2
Take off past losses
− AED 0 (max 75%)
= AED 1,000,000 - 3
AED 375,000 at 0%
AED 375,000 × 0%
= AED 0 - 4
9% on the rest
AED 625,000 × 9%
= AED 56,250 tax
Read more: the formula, a worked example, losses, free zones, Small Business Relief and deadlines
The formula
adjusted profit = accounting profit − exempt income + half of client entertainment + other non-deductible costs − other deductions + interest above the limit
interest limit = none if net interest is AED 12,000,000 or less, otherwise the higher of 30% of adjusted EBITDA and AED 12,000,000
losses used = the smaller of losses brought forward and 75% of adjusted profit
taxable income = adjusted profit − losses used
tax = (taxable income − AED 375,000) × 9%, never below 0
Qualifying Free Zone Person: tax = non-qualifying taxable income × 9%
tax due = tax − foreign tax credit (credit no more than the tax)
effective rate = tax due ÷ accounting profit × 100
Worked example
A mainland company makes an accounting profit of AED 1,000,000 with no adjustments, no interest and no losses, so its taxable income is AED 1,000,000. The first AED 375,000 is taxed at 0%, which is AED 0. The rest is AED 1,000,000 − AED 375,000 = AED 625,000, and AED 625,000 × 9% = AED 56,250 of corporate tax. The effective rate is 56,250 ÷ 1,000,000 × 100 = 5.625% (shown as 5.63%), and profit after tax is AED 1,000,000 − AED 56,250 = AED 943,750. For a year ending 31 December 2026 the return and payment are due by 30 September 2027.
More examples
- Entertainment: add AED 100,000 of client entertainment to the example. Half, AED 50,000, is added back, so taxable income is AED 1,050,000 and tax is AED 675,000 × 9% = AED 60,750.
- Losses: with AED 900,000 of losses brought forward, only 75% × AED 1,000,000 = AED 750,000 can be used. Taxable income is AED 250,000, under AED 375,000, so the tax is AED 0 and AED 150,000 of losses carries on.
- Free zone: a Qualifying Free Zone Person with AED 10,000,000 of revenue, of which AED 300,000 isn't qualifying, is within the de minimis limit (the lower of 5% × AED 10,000,000 = AED 500,000 and AED 5,000,000). If AED 100,000 of its taxable income is non-qualifying, the tax is AED 100,000 × 9% = AED 9,000.
- Interest: a company with AED 20,000,000 of profit after AED 15,000,000 of net interest has EBITDA of about AED 35,000,000. Net interest is over AED 12,000,000, so the limit applies: 30% of EBITDA is AED 10,500,000, so the higher AED 12,000,000 can be deducted and AED 3,000,000 is added back.
UAE corporate tax at a glance
| Rule | Figure |
|---|---|
| Rate on taxable income up to AED 375,000 | 0% |
| Rate on taxable income above AED 375,000 | 9% |
| Qualifying Free Zone Person: qualifying / other income | 0% / 9% |
| Free zone de minimis (non-qualifying revenue) | ≤ lower of 5% and AED 5m |
| Small Business Relief: revenue limit | AED 3,000,000 |
| Small Business Relief: last tax periods | ending by 31 Dec 2029 |
| Losses brought forward, most that can be used | 75% of taxable income |
| Net interest limit (only above AED 12m) | 30% of EBITDA |
| Client entertainment not deductible | 50% |
| Return and payment due | 9 months after period end |
Notes (UAE)
Who pays: UAE companies and other legal persons, foreign companies with a permanent establishment in the UAE, and individuals running a business above the turnover limit set by Cabinet Decision. Every taxable person, including free zone businesses and those claiming Small Business Relief, must register with the Federal Tax Authority and file a return.
Small Business Relief: it covers tax periods starting on or after 1 June 2023 and ending on or before 31 December 2029, after Ministerial Decision No. 131 of 2026 (29 July 2026) extended it from 31 December 2026. It is a choice made in the return. Losses from a year in which you claim it can't be carried forward, and losses from earlier years wait until a year you don't claim it. Splitting a business on purpose to stay under AED 3 million is not allowed.
Exempt income: dividends from UAE companies are exempt. Foreign dividends and gains on shares can be exempt under the participation exemption, which needs a holding of at least 5% kept for at least 12 months, plus other conditions.
Large groups: members of large multinational groups may owe a Domestic Minimum Top-up Tax (reported as 15% for groups with revenue of EUR 750 million or more); this calculator doesn't work it out, and these figures are not yet checked against the Ministry of Finance.
For general information only. Rules checked on 13 October 2026 against Federal Decree-Law No. 47 of 2022, Cabinet Decision No. 116 of 2022, Ministerial Decisions No. 73 of 2023, 126 of 2023 and 131 of 2026 on mof.gov.ae, and the FTA's Free Zone Persons guide on tax.gov.ae. Ask a registered tax agent before you file.
Common questions
How is UAE corporate tax calculated?
Start with your accounting profit, add back costs that are not deductible (such as half of client entertainment and any fines), take off exempt income and any losses brought forward (up to 75% of taxable income). The first AED 375,000 of taxable income is taxed at 0% and the rest at 9%. AED 1,000,000 of taxable income gives (1,000,000 − 375,000) × 9% = AED 56,250.
Is the first AED 375,000 tax-free for every company?
Yes for mainland businesses and free zone businesses that are not Qualifying Free Zone Persons. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on all other taxable income, without the AED 375,000 band.
What is Small Business Relief in the UAE?
A UAE resident business with revenue of AED 3 million or less in the tax period (and every earlier one) can elect to be treated as having no taxable income, so it pays no corporate tax. Ministerial Decision No. 131 of 2026 extended it to tax periods ending on or before 31 December 2029. Qualifying Free Zone Persons and members of large multinational groups cannot use it, and you still have to register and file a return.
When is the UAE corporate tax return due?
The return must be filed and the tax paid within 9 months of the end of the tax period. For a year ending 31 December 2026 that is 30 September 2027.
Do free zone companies pay corporate tax?
A Qualifying Free Zone Person pays 0% on qualifying income and 9% on non-qualifying income, as long as non-qualifying revenue stays within the de minimis limit (the lower of 5% of total revenue and AED 5 million) and the other conditions are met. If the limit is broken, the business loses its qualifying status and is taxed like a mainland company.
How do tax losses work under UAE corporate tax?
A tax loss can be carried forward with no time limit, but in any later year it can only reduce taxable income by up to 75%. With AED 1,000,000 of taxable income and AED 900,000 of losses, only AED 750,000 can be used; AED 150,000 carries on to the next year.
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