UAE corporate tax calculator. Only the slice above the line.
The first AED 375,000 of taxable income is taxed at zero. Only what sits above it is taxed at 9%.
Profit after deductible expenses, not revenue.
How your income splits
Corporate tax due
An effective rate of 2.25% on your total income
- Taxable income
- AED 500,000
- Taxed at 0%
- AED 375,000
- Taxed at 9%
- AED 125,000
- Income after tax
- AED 488,750
Where these figures come from
Last checked against the source: 21 August 2026
- UAE Government — Corporate tax — the page states it was updated 30 March 2026
What this does not cover
- Free zone incentives for a qualifying free zone person, which depend on conditions this calculator cannot check.
- The Pillar Two rate for large multinationals, which the official guidance describes as not yet specified.
- Exempt persons such as government entities, extractive businesses and qualifying funds.
- What counts as deductible expenditure when arriving at taxable income.
Questions
What is the UAE corporate tax rate?
Zero per cent on taxable income up to AED 375,000, and 9 per cent on the amount above it. Businesses came into scope from their first financial year starting on or after 1 June 2023.
Is the 9% charged on my whole profit?
No, and this is the most common misreading. The first AED 375,000 is taxed at zero regardless of how much you earn above it. A business with AED 400,000 of taxable income pays 9% of AED 25,000 — AED 2,250 — not 9% of AED 400,000.
Why is my effective rate below 9%?
Because the zero-rated first slice never goes away. The more the tax-free amount matters relative to your total, the further your effective rate sits below the headline 9%.
What about free zone companies?
The regime continues to honour incentives offered to free zone businesses that meet the regulatory requirements and do not conduct business in the mainland. Those conditions are specific and are not modelled here.
What about large multinationals?
A different rate applies to large multinationals meeting criteria set by reference to the OECD "Pillar Two" project. The official guidance describes that rate as not yet specified, so this calculator does not model it.