UAE Corporate Tax Calculator
Estimate your Corporate Tax from your accounting profit, apply brought-forward losses, and see whether Small Business Relief could take your bill to zero.
Estimated Corporate Tax
AED 0
- Accounting profit
- Add: non-deductible expenses
- Less: exempt income
- Taxable income before losses
- Less: losses used (max 75%)
- Taxable income
- At 0% (first AED 375,000)
- At 9%
- Corporate Tax payable
- Effective rate on taxable income
- Losses carried forward
Estimates only, based on UAE law and FTA guidance as of November 2026. Not tax or legal advice.
How the calculation works
- Start with accounting profit from financial statements prepared under IFRS.
- Add back non-deductible expenses, such as 50% of client entertainment, fines and penalties, and Corporate Tax itself.
- Deduct exempt income, such as qualifying dividends and gains on qualifying shareholdings.
- Apply brought-forward losses, capped at 75% of taxable income for the period.
- Apply the rates: 0% on the first AED 375,000 and 9% on the rest.
| Taxable income (AED) | Corporate Tax (AED) | Effective rate |
|---|---|---|
| 300,000 | 0 | 0% |
| 500,000 | 11,250 | 2.25% |
| 1,000,000 | 56,250 | 5.6% |
| 5,000,000 | 416,250 | 8.3% |
Small Business Relief
A resident business with revenue of AED 3 million or less in the tax period, and in every previous tax period, can elect Small Business Relief for tax periods ending on or before 31 December 2029. It is then treated as having no taxable income. Qualifying Free Zone Persons and members of large multinational groups cannot use it. Electing it means losses from that period can't be carried forward and brought-forward losses can't be used, so it is not always the best choice for a loss-making business. Read our Small Business Relief guide.
What this calculator doesn't cover
It gives an estimate for a standalone UAE company. It does not model transfer pricing adjustments, interest limitation, tax groups, foreign tax credits, Qualifying Free Zone Person income (use our QFZP de minimis checker) or the 15% Domestic Minimum Top-up Tax for very large groups.
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 AED 375,000. Large multinational groups may also be subject to the 15% Domestic Minimum Top-up Tax.
How much Corporate Tax do I pay on AED 1 million profit?
If taxable income is AED 1,000,000, tax is 9% of AED 625,000, which is AED 56,250, an effective rate of about 5.6%.
Can tax losses reduce UAE Corporate Tax?
Yes. Tax losses can be carried forward indefinitely, subject to conditions, and can offset up to 75% of taxable income in a later tax period.
Who qualifies for Small Business Relief?
Resident businesses with revenue of AED 3 million or less in the tax period and all previous tax periods, for tax periods ending on or before 31 December 2029. Qualifying Free Zone Persons and members of multinational groups with consolidated revenue of AED 3.15 billion or more are excluded.
Do I still need to file if no tax is due?
Yes. Every taxable person must register and file a Corporate Tax return, even if the tax payable is zero or Small Business Relief is elected.
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