Estimate UAE corporate tax on your yearly profit: 0% on the first AED 375,000 and 9% on the rest. See if Small Business Relief, for revenue up to AED 3 million, brings your tax to zero. Enter amounts in AED.
How the UAE corporate tax works
Formula. Corporate tax = (taxable profit − AED 375,000) × 9%. The first AED 375,000 of profit is taxed at 0%, and only the part above it pays 9%. With Small Business Relief, tax is AED 0.
Example. A trading company has revenue of AED 2,400,000 and taxable profit of AED 500,000. Normal tax is (500,000 − 375,000) × 9% = AED 11,250, an effective rate of 2.25%. Its revenue is under AED 3 million and always has been, so it can elect Small Business Relief and pay AED 0 instead. A company with AED 6,000,000 of taxable profit pays (6,000,000 − 375,000) × 9% = AED 506,250.
Tip. Taxable profit is your accounting profit after the adjustments the tax law asks for, not your revenue. Small Business Relief looks at revenue, so a business with low profit but revenue over AED 3 million cannot use it.
Common questions
What is the corporate tax rate in the UAE?
Under Federal Decree-Law No. 47 of 2022, businesses pay 0% on the first AED 375,000 of taxable profit and 9% on the part above it. It applies to tax years starting on or after 1 June 2023. Only the profit above AED 375,000 is taxed, so earning one dirham more never pushes your whole profit into the 9% rate.
What is Small Business Relief, and can I use it?
It lets a small business be treated as having no taxable income, so it pays no corporate tax. You can choose it if your revenue is AED 3 million or less in this tax year and in every earlier tax year. On 7 August 2026 the Ministry of Finance extended it, through Ministerial Decision No. 131 of 2026, to tax years ending on or before 31 December 2029. Qualifying Free Zone Persons and members of multinational groups with revenue over AED 3.15 billion cannot use it.
Is there a downside to choosing Small Business Relief?
If you choose it, you cannot claim other reliefs, exemptions or deductions for that year. Most small businesses still come out ahead, because their tax becomes zero. But if you made a loss or have big deductions you want to use later, ask your accountant to compare both options first. You choose the relief each year in your tax return; it is not automatic.
Do I still need to register and file a return?
Yes. Every business subject to corporate tax must register with the Federal Tax Authority and get a Corporate Tax Registration Number, even if it pays no tax. You must file your return and pay any tax due within 9 months of the end of your tax year. For a year ending 31 December 2025, that is 30 September 2026. Keep your records for at least 7 years.
Does this calculator work for free zone companies?
Only for free zone companies that are not Qualifying Free Zone Persons; they are taxed like mainland companies. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on other income, without the AED 375,000 band, and cannot use Small Business Relief, so ask a tax adviser. Splitting one business into several companies to use the AED 375,000 band more than once is not allowed: the tax authority can treat it as tax avoidance.
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