How corporate tax is worked out
Taxable income up to AED 375,000 in a tax period is taxed at 0%, and the part above AED 375,000 at 9%. On taxable income of AED 1,000,000 the tax is 9% of AED 625,000, which is AED 56,250. The AED 375,000 band applies once per business per tax period, however many activities it runs.
Taxable income is not your sales. It starts from the accounting profit in your financial statements, which is then adjusted for tax: see how accounting profit becomes taxable income.
Small Business Relief
A UAE-resident business whose revenue is AED 3 million or less in the tax period, and in every earlier tax period, can elect Small Business Relief. It is then treated as having no taxable income for that period, so no corporate tax is due, but it still files a return. The relief covers tax periods ending on or before 31 December 2029, after the Ministry of Finance extended it in August 2026.
Qualifying Free Zone Persons cannot elect it, and nor can members of multinational groups with consolidated revenue above AED 3.15 billion. Tax losses from a period under the relief cannot be carried forward.
When this calculator is not enough
A Qualifying Free Zone Person pays 0% on qualifying income and 9% on its other taxable income, which needs the qualifying income test rather than one rate. Members of multinational groups with consolidated revenue of EUR 750 million or more in at least two of the previous four years also pay a top-up tax that brings their effective rate to 15%.