What is the corporate tax rate in the UAE?

Corporate tax is 0% on the first AED 375,000 of taxable income and 9% on taxable income above that. It applies to financial years starting on or after 1 June 2023.

Who qualifies for Small Business Relief in the UAE?

A business with revenue of AED 3,000,000 or less in the current tax period and in every previous tax period since June 2023. Exceeding AED 3,000,000 in any single period disqualifies the business permanently. The relief must be elected explicitly on EmaraTax when filing.

How much corporate tax is due on AED 600,000 of profit?

The first AED 375,000 is taxed at 0% and the remaining AED 225,000 at 9%, giving AED 20,250. That is an effective rate of 3.4%.

UAE Corporate Tax Calculator

حاسبة ضريبة الشركات

9% above AED 375,000 · Includes Small Business Relief · Updated August 2026

Annual revenue (AED) Total turnover, not profit

Taxable income (AED) Accounting profit after adjustments

Tax period ends Small Business Relief depends on this

Revenue in every prior period since June 2023 One breach disqualifies you permanently

Estimated tax

AED 0.00

Effective rate 0.00%

Without relief

AED 20,250.00

Relief saves you AED 20,250.00

How UAE corporate tax is calculated

Corporate tax applies to financial years starting on or after 1 June 2023. The standard calculation has two bands and is applied to taxable income, not revenue.

Band of taxable income	Rate
First AED 375,000	0%
Above AED 375,000	9%

So a company with AED 600,000 of taxable income pays nothing on the first AED 375,000 and 9% on the remaining AED 225,000, giving AED 20,250. That is an effective rate of 3.4%, not 9%.

Small Business Relief, and why the date matters

Small Business Relief lets a qualifying business elect to be treated as having no taxable income at all. If you qualify and elect, your corporate tax is zero regardless of profit.

Revenue must be AED 3,000,000 or less in the current tax period
And in every previous tax period since June 2023. A single period above AED 3m disqualifies you permanently, even if revenue falls back afterwards
You must elect it explicitly on EmaraTax when you file. It is not automatic and late elections are not accepted

Small Business Relief is available for tax periods ending on or before 31 December 2029. Ministerial Decision No. 131, issued on 7 August 2026, extended this by three years from the original 31 December 2026 cut-off, keeping the AED 3m threshold unchanged. For a business on a calendar financial year, the 2029 return is currently the last one where you can elect it. Electing still means filing a return — the relief removes the tax, not the obligation.

Revenue and taxable income are not the same number

Eligibility for the relief is tested on revenue. The tax itself is charged on taxable income. A business turning over AED 2.8m with AED 400,000 of profit qualifies for the relief on revenue, and would otherwise owe tax on the profit.

Taxable income starts from accounting profit under IFRS and is then adjusted, for example by adding back non-deductible items such as fines, and applying the restriction on entertainment expenditure. This calculator assumes you have already arrived at your adjusted taxable income figure.

Free zone businesses

A Qualifying Free Zone Person can pay 0% on qualifying income and 9% on income that does not qualify. The conditions are specific and include maintaining adequate substance and meeting de minimis requirements. This estimator applies the standard mainland bands, so if you are in a free zone treat the result as an upper bound and take advice on your qualifying income.

Know this number before year end, not after

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This estimator is provided for general information and does not constitute tax advice. It applies the standard mainland bands and does not model free zone qualifying income, tax groups, transfer pricing adjustments or foreign tax credits. Rates and thresholds are those published by the UAE Federal Tax Authority as at August 2026. Confirm your position with a qualified tax adviser or the FTA before filing.