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The corporate tax rate in the UAE is 0% on taxable income up to AED 375,000 and 9% on the part above it. The calculator above applies those two bands to the income you enter. Source: Federal Tax Authority, corporate tax pages, checked .
How the numbers work
A company with AED 375,000 of taxable income or less owes no corporate tax. A company with AED 1,000,000 of taxable income pays 9% on the AED 625,000 above the first band. That gives AED 56,250.
| Taxable income | Tax at 0% | Tax at 9% | Total |
|---|---|---|---|
| AED 375,000 | AED 0 | AED 0 | AED 0 |
| AED 500,000 | AED 0 | AED 11,250 | AED 11,250 |
| AED 1,000,000 | AED 0 | AED 56,250 | AED 56,250 |
What the calculator leaves out
- Taxable income. You still need to get from your accounting profit to taxable income. Your accountant does this when preparing the return.
- Qualifying free zone persons. A qualifying free zone person pays 0% on qualifying income and 9% on other taxable income, and must meet the conditions on the QFZP page.
- Small business relief. A business with revenue of AED 3,000,000 or less can elect to be treated as having no taxable income. See small business relief.
- Top-up tax. Large multinationals can owe a 15% minimum top-up tax. This is not part of the estimate.
- Penalties. Late filing and late payment add penalties. Use the penalty estimator.
Reading the result
If the result is AED 0, you owe no tax for the period but you still file the return when it is due if you are registered. If the result is above zero, you pay it with the return, within the same 9 months. Keep your working: the FTA can ask for the financial statements you used and for the records behind them for seven years after the tax period ends.
When the tax is due
The return and the payment are due within 9 months of the end of the tax period. For a 31 December year end that is 30 September of the next year. Use the deadline checker for other year ends, and read the full rules in the corporate tax guide.
Need a firm to prepare the return?
Use the quote form below to ask listed firms for a fixed fee for registration and the return.
