Free UAE Tool — Updated 22 June 2026
UAE Corporate Tax Calculator 2026
How to calculate corporate tax in UAE: take your taxable income, subtract the AED 375,000 threshold, and apply 9% to what is left. A business with revenue of AED 3 million or less can instead elect Small Business Relief and pay nothing for that period. Enter your own figures below for an instant estimate.
This free corporate tax calculator UAE estimates your corporate tax liability under Federal Decree-Law No. 47 of 2022. Includes the 9% standard rate, the AED 375,000 threshold, Small Business Relief (AED 3M), and the 0% Qualifying Free Zone Person rate. For estimates only — see the official UAE Federal Tax Authority corporate tax page, our UAE corporate tax guide, or engage a tax advisor for filing.
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UAE CT formula
How to calculate corporate tax in UAE: two brackets, plus a relief for the smallest entities.
Standard mainland / non-QFZP
CT = max(0, Taxable Income − 375,000) × 9%
AED 850,000 profit → 9% × (850,000 − 375,000) = AED 42,750 CT.
Small Business Relief (revenue ≤ AED 3M)
CT = 0 (election required)
AED 2.4M revenue, AED 500K profit → election triggers 0% rate. Available for tax periods ending on or before 31 December 2026.
Qualifying Free Zone Person (QFZP)
CT = 0% on qualifying income
9% on non-qualifying income
Substance + de-minimis tests apply. Non-qualifying income limit: AED 5M or 5% of total revenue (whichever lower).
Domestic Minimum Top-up Tax (DMTT)
15% effective rate
For UAE entities in MNE groups with consolidated revenue ≥ EUR 750M. In force from 1 January 2026. Outside the scope of this calculator — engage a CT specialist.
Methodology
How this corporate tax calculator UAE works.
The calculator applies the rate structure of Federal Decree-Law No. 47 of 2022 in three checks, in order. First, it tests Small Business Relief: if the total revenue you enter is AED 3,000,000 or less and the entity isn't a Qualifying Free Zone Person, the tool treats taxable income as zero, because Cabinet Decision 49 of 2023 lets eligible businesses elect out of paying corporate tax for that period. Second, if you select the QFZP entity type, it applies the 0% rate on the assumption that all income is qualifying — a deliberate simplification, since classifying income properly needs the substance and de-minimis tests. Third, for everyone else it splits taxable income at the AED 375,000 threshold: 0% below, 9% above.
Three assumptions to keep in mind before you rely on the output. The taxable income you enter should already reflect UAE CT adjustments (entertainment 50% add-back, non-arm's-length related-party costs, exempt dividends removed) — most people enter accounting net profit, which slightly understates or overstates the true base. The tool ignores tax groups, foreign tax credits and carried-forward losses. And it doesn't model the 15% DMTT that applies to large multinational groups from 1 January 2026. Treat the result as a planning estimate, then have the actual return prepared against your trial balance.
Scope & disclaimer
This calculator implements the headline UAE CT rates under FDL 47/2022 plus Small Business Relief (Cabinet Decision 49/2023). It does NOT cover transfer pricing adjustments, qualifying income tests, foreign tax credits, group consolidation, deemed PE rules, or DMTT computations.
It is a corporate tax calculator, not a general one: for the 5% tax on invoices use our UAE VAT calculator, and for the law behind the numbers read our guide to corporate tax in the UAE.
Velmont Crest is a UAE accounting and advisory firm. For complex CT positions, see our UAE corporate tax services or engage a qualified advisor.
UAE Corporate Tax FAQs
CT questions we field most weeks.
What is the UAE corporate tax rate in 2026?
9% on taxable income above AED 375,000. 0% on the first AED 375,000. Qualifying Free Zone Persons (QFZPs) who meet the substance + de-minimis tests pay 0% on qualifying income and 9% on non-qualifying income. Multinationals with consolidated global revenue ≥ EUR 750M may face the 15% Domestic Minimum Top-up Tax (DMTT) from 1 January 2026.
How to calculate corporate tax in UAE?
Start from taxable income — accounting profit under IFRS after UAE CT adjustments such as the 50% entertainment add-back and non-arm's-length related-party costs. Subtract the AED 375,000 threshold, then apply 9% to the remainder: CT = max(0, taxable income − 375,000) × 9%. On AED 850,000 of taxable income that is 9% × 475,000 = AED 42,750. If revenue for the period is AED 3 million or less you can elect Small Business Relief instead and pay AED 0. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on the rest. The return and payment are due within 9 months of your tax period end.
Is this a UAE tax calculator for VAT as well?
No. This is a UAE tax calculator for corporate tax only — the 9% rate, the AED 375,000 threshold, Small Business Relief and the QFZP position under Federal Decree-Law No. 47 of 2022. VAT is a separate tax with its own 5% rate and its own rules, so use the UAE VAT Calculator linked in the related tools above for adding or extracting VAT on an invoice.
What is Small Business Relief?
Cabinet Decision 49 of 2023 allows UAE businesses with revenue ≤ AED 3 million per tax period to elect to be treated as having no taxable income — effectively a 0% rate. Available for tax periods ending on or before 31 December 2026. After 2026, the relief is currently scheduled to lapse unless extended by the FTA.
Who must register for UAE Corporate Tax?
Every taxable person — including freelancers above the licence threshold, sole establishments, LLCs, free zone companies, and foreign companies with a UAE permanent establishment. Registration is mandatory regardless of income level. Late registration triggers an AED 10,000 administrative penalty under Cabinet Decision 10 of 2024.
How is taxable income calculated?
Taxable income = accounting profit (IFRS) ± UAE CT adjustments. Common adjustments: add back entertainment 50% disallowance, related-party-expense disallowance if not at arm's length, depreciation differences, exempt dividends excluded. Cabinet Decision 116 of 2022 sets the formal computation rules.
What is a Qualifying Free Zone Person (QFZP)?
A free zone entity that earns Qualifying Income (transactions with foreign persons, other free zone persons, ownership of qualifying intangibles, qualifying commodity trading) and maintains adequate substance in the UAE. QFZPs pay 0% CT on qualifying income and 9% on non-qualifying income, subject to a de-minimis test (non-qualifying income ≤ AED 5M or 5% of total revenue).
When is the UAE corporate tax return due?
Within 9 months after the end of the tax period. For a calendar year-end (31 December 2025 tax period), the return + payment are due by 30 September 2026. Velmont Crest prepares CT returns and files via your EmaraTax account as an advisory firm.
What if I have multiple UAE entities — group taxation?
Under Article 40 of FDL 47/2022, a Tax Group can be formed when a UAE resident parent holds ≥ 95% of the share capital and voting rights of each subsidiary, both are tax residents, neither is exempt, and they share the same financial year. The group files one CT return and intra-group transactions are eliminated.
How much corporate tax do I pay on AED 500,000 profit?
Corporate tax applies only above the AED 375,000 threshold, so on AED 500,000 of taxable income you pay 9% × (500,000 − 375,000) = AED 11,250. The first AED 375,000 is taxed at 0%. If your revenue for the period is AED 3 million or less, you can elect Small Business Relief instead and pay AED 0. Enter your own figure in the calculator above for an instant estimate.
Do free zone companies pay corporate tax in the UAE?
Yes — every free zone company must register and file, but a Qualifying Free Zone Person (QFZP) pays 0% on qualifying income and 9% only on non-qualifying income. To keep 0% status the entity must maintain adequate substance, prepare audited financials, follow transfer pricing rules, and stay within the de-minimis limit (non-qualifying income ≤ AED 5M or 5% of revenue). Fail any test and the whole entity pays 9%. Model your position with our Free Zone Qualifying Income Checker.
What happens if I miss the corporate tax registration or filing deadline?
Late corporate tax registration triggers an AED 10,000 administrative penalty under Cabinet Decision 10 of 2024. Missing the return deadline (9 months after your tax period ends) and late payment attract further penalties and monthly interest on unpaid tax. Even a business inside the 0% band or electing Small Business Relief must still register and file on time.
Does the 15% DMTT replace the 9% corporate tax?
No. The 9% corporate tax remains the standard regime for almost every UAE business. The 15% Domestic Minimum Top-up Tax (DMTT), in force from 1 January 2026, is a top-up that only applies to UAE members of large multinational groups with consolidated global revenue of EUR 750 million or more. If your group is below that threshold, the DMTT does not affect you and this calculator's 9% output stands.
Is this calculator accurate for FTA filing?
It implements the headline 9% rate, AED 375,000 threshold and AED 3M Small Business Relief threshold correctly. It does NOT cover transfer pricing adjustments, qualifying income tests for QFZPs, deemed permanent establishment rules, foreign tax credits, or DMTT computations. Use it for estimates; Velmont Crest prepares and supports the actual return against your trial balance as an advisory firm — engage a tax advisor before filing.
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