How to use the calculator
- Choose who pays the tax: an ordinary taxable person (a mainland company, an individual in business, or a free zone person that does not qualify) or a qualifying free zone person.
- Enter the taxable income for one tax period. A qualifying free zone person enters its qualifying income and its other taxable income separately.
- Read the tax due, the part of the income taxed at each rate and the effective rate. The result updates as you type.
How the tax is calculated
For an ordinary taxable person, the income is split at the band and each part is taxed at its own rate:
Tax = 0% × the income up to AED 375,000 + 9% × the income above AED 375,000
Effective rate = tax ÷ taxable income
For a qualifying free zone person there is no band. The two kinds of income are taxed at their own rates:
Tax = 0% × qualifying income + 9% × other taxable income
The calculator keeps every amount to the fils and does not round the tax; the return is completed on the FTA's EmaraTax platform.
The rates and the band
| Rule | Figure |
|---|---|
| Standard rate on taxable income above the band | 9% |
| Band taxed at 0%, per taxable person and tax period | AED 375,000 |
| Qualifying free zone person | 0% on Qualifying Income; 9% on other Taxable Income |
Sources: Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments (consolidated, unofficial translation, v13.1.26), Articles 3(2) and 18, Ministry of Finance; Ministry of Finance Confirms Applicable Taxable Income Threshold for Corporate Tax (Cabinet Decision No. 116 of 2022), Ministry of Finance. Checked .
The band is the same for every taxable person and applies once per tax period, whatever the number of businesses. An individual who does business in the UAE is taxed with the same band and rate once the turnover of those activities is over the registration threshold for individuals.
When an individual is subject to corporate tax
AED 1,000,000 turnover per calendar year
An individual carrying on a Business or Business Activity in the UAE is subject to Corporate Tax and must register only if the combined turnover of those activities exceeds AED 1 million in a calendar year; salary, personal investment income and unlicensed real estate income are out of scope.
- Applies to
- Natural persons (resident and non-resident) conducting business in the UAE
- Source
- Ministry of Finance Announces Issuance of UAE Cabinet Decision on Treatment of Natural Persons Undertaking a Business or Business Activity (Cabinet Decision No. 49 of 2023), Ministry of Finance
- Checked
Worked examples
Worked example
Taxable income of AED 1,200,000
The income figure is an illustration.
- The first AED 375,000 is in the 0% band: tax AED 0.00.
- The part above the band is AED 1,200,000 − AED 375,000 = AED 825,000.
- Tax on that part: 9% × AED 825,000 = AED 74,250.00.
- Effective rate: AED 74,250.00 ÷ AED 1,200,000 = 6.19%.
Corporate tax due: AED 74,250.00.
Worked example
A qualifying free zone person with AED 1,000,000 of qualifying income
These are the figures of an example in the FTA's free zone guide: AED 1,000,000 of qualifying income and AED 500,000 of other taxable income, earned through a mainland branch.
- Qualifying income at 0%: tax AED 0.00.
- Other taxable income at 9%, with no band: 9% × AED 500,000 = AED 45,000.00.
- Effective rate on all taxable income: AED 45,000.00 ÷ AED 1,500,000 = 3.00%.
Corporate tax due: AED 45,000.00.
What the calculator assumes and leaves out
- Taxable income is entered, not worked out. It starts from the accounting profit and is adjusted under the Corporate Tax Law for exempt income, reliefs, deductions and tax loss relief. Enter the figure after those steps. Losses brought forward can reduce a later period's taxable income only up to a cap.
- Small business relief. A resident person with revenue at or below the relief threshold in this and every earlier tax period can elect to be treated as having no taxable income. Check it with the small business relief checker before using this calculator.
- Free zone status. The free zone option assumes the person meets every condition, including the de minimis test on non-qualifying revenue. A free zone person that fails a condition is taxed as an ordinary taxable person: choose that option instead.
- Tax periods of other lengths. The band is set per tax period, and the calculator applies the full band to the period you enter, whatever its length.
- Top-up tax. The domestic minimum top-up tax for large multinational groups is not included.
Cap on carried-forward tax losses
75%
Tax Losses carried forward can reduce the Taxable Income of a later Tax Period by no more than 75% of that period's Taxable Income before loss relief; losses from before Corporate Tax started, or before the person became a Taxable Person, cannot be used.
- Applies to
- Taxable Persons with carried-forward Tax Losses
- Source
- Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments (consolidated, unofficial translation, v13.1.26), Article 37, Ministry of Finance
- Checked
Top-up tax for large multinational groups
15% minimum effective rate; EUR 750 million group revenue
The UAE Domestic Minimum Top-up Tax applies, for financial years starting on or after 1 January 2025, to UAE entities of multinational groups with annual global revenue of EUR 750 million or more in at least two of the four preceding financial years, topping their effective tax rate up to 15%.
- Applies to
- Constituent Entities in the UAE of in-scope multinational enterprise groups (investment entities excluded)
- Source
- Domestic Minimum Top-up Tax in the UAE, Ministry of Finance
- Checked
Watch out
The return and the payment are both due 9 months after the end of the tax period. Find the exact date with the corporate tax return due date calculator; tax paid late carries a monthly penalty, shown by the late payment penalty calculator.