UAE Corporate Tax Calculator (9%)
Calculate corporate tax liabilities based on the AED 375,000 tax-free profit threshold.
UAE Corporate Tax Calculator
Calculate your UAE Corporate Tax liability under Federal Decree-Law No. 47 of 2022. Models the 0% tax-free threshold on net profits up to AED 375,000 and Small Business Relief options.
📊 Business Financial Income
💡 Small Business Relief (SBR) Eligible
Because annual business revenue is under AED 3,000,000, your business may elect Small Business Relief under Ministerial Decision No. 73 of 2023 to be treated as having no taxable income.
How UAE Corporate Tax Works (Federal Decree-Law No. 47 of 2022)
The UAE introduced a federal **9% Corporate Tax** on net business profits for financial years commencing on or after June 1, 2023.
1. The AED 375,000 Tax-Free Threshold
To support startups, small enterprises, and freelancers, the UAE Ministry of Finance established a 0% tax bracket on all net profits up to **AED 375,000 per year**. Profits exceeding AED 375,000 are taxed at a competitive flat rate of **9%**.
2. Small Business Relief (SBR) up to AED 3,000,000 Turnover
Resident businesses with gross annual revenue equal to or less than **AED 3,000,000** in a tax period can elect for **Small Business Relief (SBR)**, allowing them to pay zero corporate tax regardless of profit margin.
Worked Example: Corporate Tax Breakdown Across Profit Tiers
| Net Business Profit | 0% Tax Portion (Up to AED 375k) | 9% Tax Portion (Above AED 375k) | Total Corporate Tax Owed |
|---|---|---|---|
| AED 300,000 | AED 300,000 (0% Tax) | AED 0 | AED 0 (0.0% Effective) |
| AED 800,000 | AED 375,000 (0% Tax) | AED 425,000 @ 9% | AED 38,250 (4.8% Effective) |
| AED 2,000,000 | AED 375,000 (0% Tax) | AED 1,625,000 @ 9% | AED 146,250 (7.3% Effective) |
Frequently Asked Questions (FAQ)
Do Free Zone companies pay 0% corporate tax?
Free Zone entities can benefit from a 0% corporate tax rate on "Qualifying Income" derived from transactions with other Free Zone entities or overseas clients, provided they maintain adequate substance.
Educational Purpose Disclaimer
This calculator is provided for informational and educational estimation purposes only. All calculations and projections are based on standard mathematical formulas and assumed inputs. The output values should not be considered professional financial, legal, tax, or medical advice. ProCalc is not a registered financial advisor or licensed practitioner. Always consult a qualified professional (such as a Chartered Accountant, certified planner, or physician) before making major decisions.
What is the UAE Corporate Tax Calculator (9%)?
The UAE Corporate Tax Calculator is a business planning utility designed for companies, sole establishments, and freelancers operating in the United Arab Emirates to estimate tax liabilities under the new federal corporate tax regime.
Effective for financial years starting on or after June 1, 2023, the UAE Ministry of Finance introduced a federal corporate tax to align the nation with global tax transparency standards (specifically the OECD Pillar 2 framework) while maintaining a highly competitive business environment.
The UAE corporate tax structure is designed with a progressive rate scheme to protect small businesses and startups:
• 0% Tax Rate: Levied on net taxable business profits up to AED 375,000 in a financial year. This tax-free bracket helps entrepreneurs and SMEs grow without tax burdens.
• 9% Tax Rate: Levied on any net taxable business profits exceeding AED 375,000.
• Small Business Relief (SBR): Complying resident businesses with annual revenues below AED 3 Million can elect to be treated as having no taxable income, effectively paying 0% tax, subject to specific conditions.
Taxable profit is calculated as your gross business revenue minus deductible operating expenses (rent, marketing, logistics) and reasonable salaries paid to directors and employees. Corporate tax laws also apply specific regulations to Free Zone companies, offering 0% tax on qualifying income, while non-qualifying income is taxed at the standard 9% rate.
This tool calculates your net taxable profit, applies the AED 375,000 threshold, computes the corporate tax owed, and displays your effective tax rate.
How Does the UAE Corporate Tax Calculator (9%) Work?
1. Input your annual business revenue. 2. Input operating expenses and salaries. 3. View taxable profit, corporate tax owed, and effective tax rate.
Formula & Calculation Method
Taxable profit = revenue - expenses - salaries. Corporate tax is 0% on profits up to AED 375,000, and 9% on any profits exceeding AED 375,000.
Example Calculation
Revenue AED 1M, expenses AED 500k. Profit = AED 500k. Taxable profit above threshold = AED 125k. Tax owed = 125k * 9% = AED 11,250.
Frequently Asked Questions
Taxable profit = revenue - expenses - salaries. Corporate tax is 0% on profits up to AED 375,000, and 9% on any profits exceeding AED 375,000.
Disclaimer: This tool is provided for informational and calculation purposes. Output values are estimates based on standard user inputs.