Estimate the corporate tax on your company's taxable income in the UAE, and check whether Small Business Relief can reduce it to zero.
Tax year Federal Decree-Law No. 47 of 2022Rules checked: November 2026How we calculate
Corporate taxAED 47,2509% above AED 375,000
Effective rate on taxable income
5.25%
Profit after tax
AED 852,750
Taxable income
AED 900,000.00
At 0% (first AED 375,000)
AED 375,000.00
At 9%
AED 525,000.00
Corporate tax
AED 47,250.00
Qualifying Free Zone Persons can pay 0% on qualifying income. Large multinational groups may be subject to the 15% Domestic Minimum Top-up Tax.
Small Business Relief applies to tax periods ending by 31 December 2026 under the original decision; an extension to 2029 has been reported — check the Federal Tax Authority before relying on it.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency.
How corporate tax is calculated
Taxable income starts from the accounting net profit in the financial statements, adjusted for exempt income, non-deductible expenses (such as 50% of entertainment) and reliefs.
The first AED 375,000 is taxed at 0%.
The rest is taxed at 9%.
Small Business Relief: if revenue is AED 3 million or less, the business can elect to have no taxable income for the period (losses cannot be carried forward while the relief is used).
Worked example: AED 900,000 of taxable income
Revenue AED 5 million, taxable income AED 900,000
The first AED 375,000 is taxed at 0% and the remaining AED 525,000 at 9%: AED 47,250.
Corporate taxAED 47,2509% above AED 375,000
Effective rate on taxable income
5.25%
Profit after tax
AED 852,750
Taxable income
AED 900,000.00
At 0% (first AED 375,000)
AED 375,000.00
At 9%
AED 525,000.00
Corporate tax
AED 47,250.00
Tips
Register for corporate tax with the Federal Tax Authority even if no tax is due; late registration attracts a penalty.
File within nine months of the end of the financial year.
Keep transfer pricing documentation for transactions with related parties and connected persons.
Questions people ask
What is the corporate tax rate in the UAE?
0% on taxable income up to AED 375,000 and 9% on the amount above it, for financial years starting on or after 1 June 2023.
What is Small Business Relief?
Resident businesses whose revenue is AED 3 million or less in the tax period and all previous periods can elect to be treated as having no taxable income. It must be elected in the tax return.
Do freelancers pay corporate tax?
Individuals pay corporate tax only if their business turnover exceeds AED 1 million in a calendar year. Salaries, personal investment income and real estate income held personally are not taxed.
What about free zone companies?
Qualifying Free Zone Persons pay 0% on qualifying income and 9% on other income, provided they meet the substance and de minimis conditions.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency. Read the full disclaimer.
