Corporate tax maths
Note: Educational estimate of the standard rate structure only. Free zone qualifying income, group relief and other adjustments aren't modelled — confirm with the FTA or a tax advisor.
What this UAE Corporate Tax Calculator does
UAE Corporate Tax runs on a two-band structure: nothing on the first AED 375,000 of taxable profit, then 9% on everything above it. A business that also qualifies for Small Business Relief — broadly, revenue at or below AED 3,000,000 in the tax period — can elect to be treated as having no taxable income at all for that period, overriding the standard bands entirely.
Enter your profit and revenue, choose whether to model the Small Business Relief election, and see which structure actually applies to your numbers.
Why people search for UAE Corporate Tax Calculator
Since Corporate Tax rolled out, small business owners and freelancers-turned-companies want a fast answer to one question: does the 9% band even apply to me, or does Small Business Relief wipe it out. The AED 375,000 and AED 3,000,000 thresholds are close enough that a lot of small UAE businesses sit right on the boundary.
Founders budgeting for a new financial year also use it to model growth — at what profit level does crossing out of Small Business Relief eligibility actually cost more in tax than the extra revenue is worth.
How UAE Corporate Tax works (educational)
Standard structure: CT = (taxable profit − AED 375,000) × 9%, or AED 0 if profit is at or below AED 375,000. With Small Business Relief elected and revenue at or below AED 3,000,000, CT = AED 0 regardless of profit, subject to eligibility conditions this calculator doesn't fully model (anti-abuse rules, qualifying period limits, and other FTA conditions apply).
How to use this calculator
- Enter your annual taxable profit.
- Enter your annual revenue.
- Choose whether to elect Small Business Relief if your revenue is AED 3,000,000 or below.
- Tap Calculate to see your estimated corporate tax.
- Check whether free zone qualifying income rules might apply to you instead.
- Confirm your actual liability with the FTA or a tax advisor before filing.
Worked examples
Under the AED 375,000 threshold — AED 0 CT either way.
(500,000 − 375,000) × 9% = AED 11,250.
Revenue under AED 3M — AED 0 CT if Small Business Relief applies.
Revenue exceeds AED 3M — SBR unavailable, standard 9% band applies above AED 375,000.
Tips to save money or avoid mistakes
- Check both profit and revenue against the thresholds — Small Business Relief is a revenue test, not a profit test.
- Free zone companies should confirm Qualifying Free Zone Person status separately — this tool doesn't model that rate.
- Small Business Relief is an election, not automatic — confirm it's actually claimed through EmaraTax if eligible.
- Model a growth year before it happens — crossing the AED 3M revenue line changes the whole tax picture, not just the marginal AED.
- Keep this separate from VAT — Corporate Tax and 5% VAT are different taxes with different thresholds entirely.
Frequently asked questions
What is the UAE corporate tax rate?
0% on taxable income up to AED 375,000, and 9% on taxable income above that threshold, for most businesses subject to UAE Corporate Tax.
What is Small Business Relief?
An election available to resident businesses with revenue at or below AED 3,000,000 in a tax period, treating them as having no taxable income for that period if elected. Eligibility conditions apply — confirm on the FTA portal.
Is this calculator official FTA guidance?
No. This is an educational estimate of the standard rate structure. Free zone qualifying income, group relief, and other adjustments aren't modelled — confirm your actual liability with the FTA or a tax advisor.
Do free zone companies pay 9%?
Qualifying Free Zone Persons may be eligible for a 0% rate on qualifying income under separate rules this calculator doesn't model — confirm your specific free zone and activity eligibility with the FTA.
Do you store my numbers?
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Where these figures come from
This calculator follows the 9% corporate tax rate and the AED 375,000 threshold, published by the Federal Tax Authority. Dubai Calculators is independent and is not affiliated with that body.
Last checked against the source: 6 October 2026. The 0% band to AED 375,000, the 9% rate above it and the AED 3,000,000 Small Business Relief threshold were all confirmed, as was the extension of that relief to 31 December 2029.
Small Business Relief, extended
Small Business Relief now runs to 2029. It was originally due to end with tax periods closing on 31 December 2026. Ministerial Decision No. 131 of 2026 extended it by three years, to tax periods ending on or before 31 December 2029. The AED 3,000,000 revenue threshold is unchanged, the relief is not automatic — you have to elect for it on the return — and exceeding AED 3,000,000 in any earlier period from 1 June 2023 onward disqualifies you permanently.
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Disclaimer
Disclaimer: Educational estimate of the standard UAE Corporate Tax rate structure. Not tax advice. Confirm your actual liability, eligibility for reliefs, and filing obligations with the Federal Tax Authority or a licensed tax advisor. Not affiliated with the FTA or any UAE authority.