UAE Corporate Tax Calculator
Calculate Corporate Tax in the UAE. Estimate your 9% tax liability on net profits exceeding the AED 375,000 threshold.
Understanding UAE Corporate Tax
The UAE introduced a federal Corporate Tax on business profits effective for financial years starting on or after June 1, 2023. The tax applies to businesses and individuals conducting business activities under a commercial license in the UAE. Free zone businesses may be subject to a 0% rate on qualifying income, subject to meeting specific conditions.
The 9% Corporate Tax Rate
The standard Corporate Tax rate in the UAE is 9%. However, to support small businesses and startups, the UAE government has implemented a 0% tax rate on the first AED 375,000 of taxable income. Only the portion of taxable income that exceeds AED 375,000 is subject to the 9% rate.
Worked Example
- Annual Net Profit: AED 500,000
- Exempt Amount: AED 375,000
- Taxable Income: AED 500,000 - AED 375,000 = AED 125,000
- Tax Liability: 9% of AED 125,000 = AED 11,250
- Effective Tax Rate: (11,250 / 500,000) * 100 = 2.25%
Frequently Asked Questions
Does corporate tax apply to my salary?
No, corporate tax does not apply to personal income from employment, real estate investments by individuals in their personal capacity, or other personal investment income.
Are free zones exempt from corporate tax?
Free zone businesses that meet the conditions to be considered a 'Qualifying Free Zone Person' can benefit from a 0% corporate tax rate on their 'Qualifying Income'. Income that does not meet the qualifying criteria is subject to the standard 9% rate.
Disclaimer: This calculator is for educational and informational purposes only. It is not a substitute for professional financial advice. Results are estimates based on the information provided and may not reflect actual outcomes. Please consult with a qualified financial advisor, accountant, or tax professional before making any financial decisions. Past performance does not guarantee future results.