UAE corporate tax calculator
An estimate of the corporate tax on your agency’s year: 0% on the first AED 375,000 of taxable income and 9% above, the adjustments that change it, whether Small Business Relief applies, and when the return is due. For mainland companies, free zone companies and freelancers. Free, no sign-up.
Adjustments (leave blank if none)
How it is worked out
- Net profit before tax900,000
- Plus Half of client entertainment20,000
- Plus Fines and penalties2,000
- Taxable income922,000
- At 0% (up to AED 375,000)375,000
- At 9% (above AED 375,000)547,000
- Corporate tax49,230
Revenue is over AED 3,000,000, so Small Business Relief does not apply.
A return is due even when no tax is. Late registration is fined AED 10,000, waived when the first return is filed within seven months of the end of the first tax period.
An estimate from the published rules, not tax advice. Your accounts, your licence and any group, free zone or connected-person arrangements can change the answer: check it with a registered tax agent before you file.
What the estimate applies
| Rule | What it says | Source |
|---|---|---|
| Rates | 0% up to AED 375,000 of taxable income, 9% above, per business per tax year; not pro-rated for a short first year. | Ministry of Finance, FTA on the first tax period |
| Small Business Relief | Revenue of AED 3m or less in the year and every earlier year; taxable income treated as nil; extended to tax years ending on or before 31 December 2029. | Ministry of Finance, August 2026, FTA |
| Freelancers and sole establishments | Business income taxable only above AED 1,000,000 of turnover in a calendar year (Cabinet Decision 49 of 2023). | KPMG |
| Free zones | 0% on qualifying income only; status lost for five years above 5% of revenue or AED 5m of non-qualifying revenue; marketing is not a qualifying activity. | PwC, Deloitte |
| Adjustments | Entertainment 50% deductible; fines and non-qualifying donations not deductible; UAE dividends exempt; losses offset at most 75% of taxable income. | PwC |
| Deadlines | Return and payment within nine months of the year end, even when no tax is due; AED 10,000 for late registration, waived when the first return is on time. | FTA on filing, FTA on the waiver |
What it leaves to your tax agent
Tax groups, transfer pricing, the owner’s own salary in a company (payments to connected people must be at market value), the exact split of a free zone company’s income, and anything your licence or accounts make unusual. Checked against the published rules in September 2026; rules change, so confirm before you file.
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Try it freeCommon questions
How much corporate tax does a UAE company pay?
0% on taxable income up to AED 375,000, and 9% on everything above it, for each tax year. An agency with AED 900,000 of taxable income pays 9% of AED 525,000, which is AED 47,250.
What is Small Business Relief?
A choice for businesses whose revenue is AED 3,000,000 or less in the tax year and in every earlier one: their taxable income is treated as nil. It now runs to tax years ending on or before 31 December 2029 (Ministerial Decision 131 of 2026). You still file a simplified return, and a loss made in a relief year cannot be carried forward. It is not open to a Qualifying Free Zone Person.
Do freelancers pay corporate tax?
Only on business income, and only when their business turnover passes AED 1,000,000 in a calendar year. Salary and personal investment income do not count. Above the threshold they register by 31 March of the next year and file by 30 September.
Does a free zone agency pay 0%?
Only on qualifying income, and marketing and advertising are not qualifying activities, so an agency's fees usually are not. If non-qualifying revenue passes 5% of revenue or AED 5,000,000, whichever is lower, the company loses its qualifying status for that year and the next four and pays the standard rates.
When is the return due?
Nine months after the end of the tax year, for the return and the payment. A year ending 31 December 2025 is due by 30 September 2026. A return is due even when no tax is.