Calculate your UAE corporate tax in minutes and get a clear estimate of what your business needs to pay this year. Our free online tax calculator uae gives you instant, accurate results with no guesswork.
Having trouble understanding the tax calculator we advise you to contact a reputable tax consultant, contact one now.
Ready to calculate your corporate tax for next year?
How UAE Tax Is Calculated
In the UAE, corporate tax is charged on the profits your business makes. The good news is, it’s calculated using your existing financial statements — so you don’t need to keep separate tax records.
Key Parts of the Calculation
1. Start with Accounting Profits
Your taxable income starts with the net profit or loss shown in your company’s financial statements.
Example: If your business makes AED 500,000 profit, this is the starting point for calculating your corporate tax.
2. Make Adjustments
- Unrealized Gains or Losses: Gains on assets you haven’t sold aren’t taxed. Revenue-related gains are included.
- Exempt Income: Some income, like profits from foreign branches or qualifying investments, may be tax-free.
- Carry Forward Losses: If your business had a loss last year, you can use it to reduce taxable profits in future years.
3. Deduct Allowed Expenses
You can subtract business costs such as salaries, rent, depreciation, and R&D.
Some things cannot be deducted, like recoverable VAT or donations to unapproved organizations.
UAE Corporate Tax Rates
| Taxable Income | Tax Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
- Free Zone Companies (QFZP): May pay 0% on qualifying income from free zone or foreign clients.
- Income from mainland UAE clients is taxed at 9% above AED 375,000.
Example Calculation
Suppose your business earns AED 560,000 in FY 2025:
| Taxable Income | Tax Rate | Tax Payable (AED) |
|---|---|---|
| First 375,000 | 0% | 0 |
| Remaining 185,000 | 9% | 16,650 |
| Total Tax Payable | — | 16,650 |
Why Use the UAE Tax Calculator
- Quick & Easy: Avoid doing manual math.
- Accurate: Includes deductions, exemptions, and Free Zone rules.
- FTA-Compliant: Follow the UAE law without guesswork.
- Plan Ahead: Know your liability early and avoid fines for late or incorrect filings.
Need Expert Help?
If you’re unsure about your calculation or want a professional review, our UAE corporate tax consultants can help.
Our experts check your tax liability, ensure compliance, and guide you on planning efficiently. Use the calculator now and connect with a specialist today.
FAQs
How is UAE corporate tax calculated?
It’s based on your net profit, with adjustments for exemptions, deductions, and previous losses.
Does corporation tax apply to free zone companies?
Yes, but qualifying Free Zone Persons (QFZP) may pay 0% on qualifying income.
Can losses be carried forward?
Yes — losses from previous years can reduce taxable profits in the future.
Is this calculator FTA-compliant?
Yes, it follows Federal Decree-Law No. 47 of 2022 guidelines.
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