UAE corporate tax calculator
Estimate UAE corporate tax for a mainland or free zone company, including the 0 percent band, Small Business Relief, and the free zone de minimis test that decides whether you keep your 0 percent rate.
Mainland companies pay 0 percent on the first AED 375,000 of taxable income and 9 percent above it.
Net accounting profit after adjustments, not revenue.
Used to check Small Business Relief, which is available at or below AED 3,000,000 of revenue for periods ending on or before 31 December 2026.
How this is computed
Tax is charged on taxable income above the AED 375,000 band.
| Taxable income | 500,000.00 |
| First AED 375,000 at 0% | 0.00 |
| Remaining at 9%125,000 × 9% | 11,250.00 |
| Corporate tax | 11,250.00 |
Disclaimer
This is an estimate based on Federal Decree-Law 47 of 2022 and related decisions: a 0 percent rate on taxable income up to AED 375,000, a 9 percent rate above it, Small Business Relief for revenue at or below AED 3,000,000 through periods ending 31 December 2026, and the free zone Qualifying Free Zone Person regime. Corporate tax is charged on taxable income, broadly accounting profit after adjustments, not on revenue. QFZP status also depends on substance, transfer pricing, and audited IFRS accounts that this tool does not assess. A separate 15 percent Domestic Minimum Top-up Tax applies to very large multinational groups. Confirm your position with a tax professional before filing on EmaraTax.
How UAE corporate tax works
The UAE introduced federal corporate tax under Federal Decree-Law 47 of 2022, effective for financial years starting on or after 1 June 2023. The structure is simple at its base: every taxable person pays 0 percent on the first AED 375,000 of taxable income and 9 percent on the amount above it. This applies to mainland and free zone companies alike. Everything else — Small Business Relief and the free zone regime — is a modifier on top of that base.
Tax is charged on taxable income, which is broadly your accounting profit after specific adjustments, not on revenue. The return is filed on the FTA's EmaraTax portal within nine months of the financial year-end, so a December year-end company files for 2025 by 30 September 2026.
How to calculate corporate tax
For a standard company, only the portion of taxable income above AED 375,000 is taxed, and it is taxed at 9 percent.
The relief for companies under AED 3 million in revenue
A UAE-resident business with total revenue at or below AED 3,000,000 can elect Small Business Relief and be treated as having no taxable income, paying zero corporate tax for the period. It is a transitional measure available only for tax periods ending on or before 31 December 2026, and it must be actively elected on EmaraTax — it is not automatic. Electing it forfeits tax losses and disallowed interest from that period, and it cannot be combined with the free zone QFZP regime.
The QFZP regime and the de minimis cliff edge
A free zone company is not automatically tax-free. It pays 0 percent only on qualifying income, and only if it meets all the conditions to be a Qualifying Free Zone Person (QFZP): adequate substance in the free zone, qualifying income, passing the de minimis test, no election into the standard regime, and arm's length transfer pricing. Income that does not qualify — typically income from UAE mainland customers — is taxed at 9 percent with no AED 375,000 relief once QFZP status is in play.
A QFZP can earn a small amount of non-qualifying income without losing its status, but the limit is strict: non-qualifying revenue must stay below the lower of 5 percent of total revenue or AED 5,000,000. Breach it by even a small amount and the consequence is severe: the company loses QFZP status for that year and the following four years, and pays 9 percent on all of its income, qualifying and non-qualifying alike.
Running a free zone company and not sure whether your income qualifies? Our UAE team handles QFZP segmentation — substance, transfer pricing, audited IFRS accounts, and the corporate tax return on EmaraTax.
Corporate tax rates at a glance
Every rate that applies under the UAE corporate tax law.
| Situation | Rate |
|---|---|
| Taxable income up to AED 375,000 | 0% |
| Taxable income above AED 375,000 | 9% |
| Small Business Relief (revenue ≤ AED 3m, to end 2026) | 0% |
| QFZP qualifying income | 0% |
| QFZP non-qualifying income | 9% |
| Large multinationals (Domestic Minimum Top-up Tax) | 15% |
UAE corporate tax questions
What businesses ask before they file the first return.
What is the corporate tax rate in the UAE?
Zero percent on the first AED 375,000 of taxable income and 9 percent on the amount above it. The rate applies to mainland and free zone companies alike. A separate 15 percent Domestic Minimum Top-up Tax applies to very large multinational groups.
Is taxable income the same as revenue?
No. Taxable income is broadly your accounting profit after specific adjustments, not your full revenue. A company with high revenue and slim margins can pay much less tax than the headline rate suggests.
When do I file my corporate tax return?
Within nine months of the end of your financial year, through the FTA EmaraTax portal. A December year-end company files for 2025 by 30 September 2026.
Who can elect Small Business Relief?
A UAE-resident business with total revenue at or below AED 3,000,000 for the period. It is a transitional relief, available only for tax periods ending on or before 31 December 2026, and must be actively elected on EmaraTax. Electing it forfeits tax losses and disallowed interest from that period.
Is a free zone company automatically tax-free?
No. A free zone company is a Qualifying Free Zone Person (QFZP) only if it meets every condition: qualifying income, substance in the free zone, passing the de minimis test, no election into the standard regime, and arm's length transfer pricing. Income that does not qualify, typically income from UAE mainland customers, is taxed at 9 percent — with no AED 375,000 relief under the QFZP regime.
What is the de minimis test?
A safety valve that lets a QFZP earn a small amount of non-qualifying income without losing its status. Non-qualifying revenue must stay below the lower of 5 percent of total revenue or AED 5,000,000. If you breach it, you lose QFZP status for that year and the next four years, and 9 percent applies to all of your income — qualifying and non-qualifying alike.
Can I combine Small Business Relief with the QFZP regime?
No. The two reliefs are mutually exclusive. A free zone company that elects Small Business Relief gives up QFZP status for that period.
What is the Domestic Minimum Top-up Tax?
A 15 percent minimum effective tax rate that applies to multinational groups with global consolidated revenue at or above EUR 750 million, in line with the OECD Pillar Two rules. Most companies are not affected.
Talk to our UAE team
Setting up in the UAE and need corporate tax lined up from day one? We handle FTA registration, the mainland or free zone structuring decision, qualifying income segmentation for QFZP claims, audited accounts, and your annual return on EmaraTax. We help you keep the 0 percent rate where it is genuinely available.