UAE Corporate Tax Calculator
Calculate UAE federal corporate tax at 9% above AED 375,000 profit. Covers small business relief and the 15% DMTT for large multinationals.
Business Details
0% on first AED 375,000, 9% on excess (unless large MNE). Free Zone qualifying income may be 0% — consult your advisor.
Corporate Tax
Tax Owed
AED 56,250
Effective rate 5.63%
Taxable Profit
AED 1,000,000
Applicable Rate
9%
Net Profit After Tax
AED 943,750
UAE corporate tax from June 2023
Federal Corporate Tax applies to taxable profits of UAE businesses. 0% on the first AED 375,000 of taxable profit, 9% on profit above that. Introduced by Federal Decree-Law 47 of 2022; effective for financial years starting on or after 1 June 2023.
Small Business Relief
Resident businesses with revenue up to AED 3 million can elect Small Business Relief — treated as having no taxable income (0% tax) through FY 2026 tax periods. Still must register and file, but owe nothing and get simplified reporting.
Free Zones — QFZP status
Qualifying Free Zone Persons may enjoy 0% on qualifying income (mainly income from other Free Zone entities, or specific listed activities). Non-qualifying income taxed at 9%. Requirements: adequate substance, audited financials, no election out of QFZP regime.
15% Domestic Minimum Top-Up Tax
From 1 January 2025, large multinational groups (consolidated global revenue ≥ €750 million) face a 15% DMTT — bringing UAE in line with OECD Pillar Two. Effective rate for covered groups is 15% from the first dirham of profit.
Frequently Asked Questions
Everything you need to know, in one place.
What is the UAE corporate tax rate?
0% on taxable profit up to AED 375,000, then 9% on the excess. Effective from 1 June 2023. Qualifying Free Zone Persons may still enjoy 0% on qualifying income — strict substance and activity tests apply.
What is Small Business Relief?
Eligible resident businesses with revenue up to AED 3 million can elect to be treated as having no taxable income (i.e. 0% tax, simplified compliance) through FY 2026 tax periods. Must register and file, but no tax due.
What is the 15% DMTT?
Domestic Minimum Top-Up Tax — applies from Jan 2025 to UAE entities within multinational groups with consolidated global revenue ≥ €750 million. Ensures a 15% effective tax rate, consistent with OECD Pillar Two. Removes any AED 375k threshold advantage for large MNEs.
When is the filing deadline?
Corporate tax return must be filed within 9 months of the end of the relevant tax period. For calendar-year companies with first year ending 31 Dec 2024, first return due by 30 Sep 2025.
Are Free Zone companies exempt?
Qualifying Free Zone Persons (QFZP) pay 0% on "qualifying income" (certain activities with other Free Zone entities and specified exports) and 9% on non-qualifying income. Strict requirements: adequate substance, maintain audited financials, meet de minimis rules (non-qualifying revenue under AED 5m or 5% of total). Many mainland-facing businesses end up at 9%.
How is taxable income calculated?
Start with accounting net profit under IFRS or IFRS for SMEs, then apply specific adjustments: add back non-deductible entertainment (50%), fines and penalties, donations to non-approved entities; subtract exempt income (dividends from UAE participations, qualifying foreign source income). Tax losses carry forward indefinitely but offset capped at 75% of current-year taxable income.
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