Free ToolsUAE Corporate Tax Calculator

UAE Corporate Tax
Calculator

Calculate your UAE corporate tax liability under Federal Decree-Law No. 47 of 2022. Supports mainland businesses, free zone entities, and Small Business Relief.

Calculate your corporate tax
Entity Type
Mainland
Free zone
Expected Annual Revenue (AED)
Expected Gross Profit (AED)
Annual Operating Expenses (AED)
% of Profit from Qualifying Activities
Qualifying activities are taxed at 0%. Remaining is taxed at 9% above AED 375,000.
Apply Small Business Relief

Available if revenue ≤ AED 3,000,000. Treats taxable income as zero. Valid through tax periods ending on or before 31 December 2026.

Calculate Tax
Your Tax Calculation
Corporate tax applies at 9% on taxable income above AED 375,000.
Corporate Tax Payable
AED {amount}
Entity type
{type}
Annual revenue
AED {amount}
Gross profit
AED {amount}
− Operating expenses
AED {amount}
= Taxable income
AED {amount}
📊 Tax Breakdown
First AED 375,000 @ 0%
See below
Standard bands — see free zone breakdown
See below
Qualifying income @ 0%
AED {amount}
Non-qualifying income tax
AED {amount}
Effective tax rate
{percentage}%
💰 Tax Payment & Cash Flow

No tax is currently due, but you still need to register with the FTA and file a tax return. Use the time to optimize your cash flow for future growth.

Monthly tax provision needed
AED {amount}/month

Need to free up cash for tax obligations? Comfi's Invoice Discounting unlocks cash from outstanding invoices within hours — use it to cover tax payments without straining your working capital.

Explore Invoice Discounting

UAE Corporate Tax: Everything You Need to Know

The UAE introduced corporate tax on June 1, 2023, under Federal Decree-Law No. 47 of 2022. It applies to all businesses and commercial activities in the UAE, with some exemptions. The standard rate is one of the lowest globally at just 9%.

UAE Corporate Tax Rates

Taxable Income Band
Up to AED 375,000
Above AED 375,000
Qualifying income (QFZP)
Non-qualifying income (free zone)
Tax Rate
0%
9%
0%
9%
Who It Applies To
All businesses
Mainland businesses
Qualifying Free Zone Persons
Free zone entities with non-qualifying income

Small Business Relief (SBR)

Businesses with revenue of AED 3,000,000 or less can elect Small Business Relief, which treats their taxable income as zero, meaning no tax to pay. Key points:

• Available for tax periods starting on or after 1 June 2023
• Valid through tax periods ending on or before 31 December 2026
• Must be elected, it's not automatic
• Revenue threshold is based on the current and prior tax periods
• Cannot carry forward losses during SBR periods)

How Corporate Tax is Calculated

Taxable Income = Accounting Net Profit + Non-Deductible Expenses − Exempt Income



Tax on first AED 375,000 = AED 0

Tax on remainder = (Taxable Income − 375,000) × 9%

Qualifying Free Zone Person (QFZP)

Free zone entities can qualify for 0% tax on qualifying income if they meet all of these conditions:

• Maintain adequate substance in the UAE (employees, assets, expenditure)
• Derive qualifying income (trade with other free zone entities, specific qualifying activities)
• Have not elected to be subject to standard corporate tax
• Comply with transfer pricing documentation requirements
• Prepare audited financial statements

Non-qualifying income (e.g., revenue from mainland customers, income from excluded activities) is taxed at the standard 9% rate, but still benefits from the AED 375,000 threshold.

Key Deadlines & Filing

Registration
All businesses must register with the FTA, even if no tax is due
Filing deadline:
Within 9 months after the end of the tax period
Payment deadline:
Same as filing: 9 months after tax period end
Penalties:
Late registration: AED 10,000. Late filing: AED 500–1,000/month up to AED 14,000

Corporate Tax and Cash Flow

A 9% corporate tax rate on, say, AED 1 million of taxable income means a AED 56,250 tax bill. For SMEs operating on tight margins, this represents a significant cash outflow that needs to be provisioned throughout the year.

Smart cash flow management is critical. Invoice discounting through Comfi can help bridge the gap — unlock cash from outstanding invoices to cover your tax obligations without disrupting daily operations or dipping into reserves.

Need cash for tax payments?

Unlock working capital from your invoices to cover corporate tax without straining cash flow.

Get Funded
🏛️ UAE Corporate Tax Quick Facts

Rate: 0% up to AED 375K, 9% above
SBR threshold: AED 3,000,000 revenue
Filing deadline: 9 months after period end
Late registration: AED 10,000 penalty
Free zone: 0% on qualifying income
Loss carry-forward: Up to 75%

Comfi Products
Invoice Discounting
Buy Now Pay Later
Dealer Financing
Related Tools
UAE VAT Calculator
Profit Margin Calculator
Invoice Discounting Calculator
Case Studies
See how businesses like yours are using Comfi to unlock growth.
Explore our 

case studies
See what Comfi can do for you
Learn how Comfi can help you unlock working capital so you can grow without delays.
Get Started

Frequently asked questions

Contact Us

Do all UAE businesses need to pay corporate tax?

All businesses must register with the FTA. Whether you pay tax depends on your taxable income. If your income is below AED 375,000, or if you qualify for Small Business Relief (revenue ≤ AED 3M), your tax may be zero. But you still need to file a return.

What's the difference between revenue and taxable income?

Revenue is your total sales/turnover. Taxable income is your net profit after deducting allowable business expenses (salaries, rent, COGS, etc.). For example, a business with AED 5M revenue and AED 4M in expenses has a taxable income of AED 1M.

Is personal income taxed in the UAE?

No. The UAE does not impose personal income tax. Corporate tax applies only to business and commercial activities. Employment income, investment returns (for individuals), and real estate income (for individuals) remain tax-free.

Can I carry forward losses?

Yes. Tax losses can be carried forward and offset against future taxable income, but only up to 75% of the taxable income in any given period. Losses cannot be carried back. Note: losses during SBR periods cannot be carried forward.

Are free zone companies exempt from corporate tax?

Not automatically. Free zone companies that meet the Qualifying Free Zone Person (QFZP) requirements can enjoy 0% tax on qualifying income. However, non-qualifying income (e.g., from mainland customers) is taxed at 9%. All free zone entities must register and file returns.

What expenses are deductible?

Most ordinary business expenses are deductible: salaries, rent, utilities, COGS, professional fees, marketing, depreciation, and more. Non-deductible expenses include: fines/penalties, donations (above limits), personal expenses, and entertainment expenses (50% cap).