What's the threshold?

AED 375,000 profit — 0% below.

Only for 'qualifying income' — <5% mainland revenue.

Yes — for MNE groups €750M+ from 2025.

UAE Corporate Tax 9% 2027 Calculator

Q: Pillar 2 applies?

Yes — for MNE groups €750M+ from 2025.

UAE Corporate Tax 2027 effective 9% above AED 375,000 taxable profit. Free zone qualifying income remains 0% if 'qualifying' (excludes mainland customers >5%). Pillar 2 multinationals (€750M+) face 15% DMTT (effective 2025).

Annual taxable profit (AED)

Entity type

UAE Corporate Tax Regime

Effective from financial year starting June 1, 2023. 9% standard rate above AED 375K threshold. Implemented per Federal Decree-Law 47/2022.

Free Zone Qualifying Income

Activities listed in Cabinet Decision 100/2023 + mainland revenue <5%. Qualifies for 0% rate. Most free zone companies need restructure to qualify.

Pillar 2 DMTT

UAE adopting Pillar 2 effective Jan 2025 for multinationals €750M+ revenue. Domestic top-up tax ensures 15% minimum ETR.

Source and Disclaimer

Federal Tax Authority UAE, Federal Decree-Law 47/2022. Verify with FTA before relying on rates.

Source: Federal Tax Authority UAE. Last updated: May 2026.