UAE Corporate Tax Calculator 2026

Calculate your UAE 9% corporate tax liability with free zone relief, small business exemption, and a detailed taxable income breakdown. Instantly see how much tax your business owes under the Federal Decree-Law No. 47 of 2022.

Percentage of income from qualifying activities (manufacturing, logistics, HQ services, etc.)

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Understanding UAE Corporate Tax at 9%

The UAE introduced a federal corporate tax effective from June 1, 2023, under Federal Decree-Law No. 47 of 2022. The standard rate is 9% on taxable income exceeding AED 375,000. Income up to AED 375,000 is taxed at 0%, providing a built-in threshold to support small businesses and startups. This corporate tax applies to all businesses operating within the UAE, including mainland companies, free zone entities earning non-qualifying income, and foreign entities with a permanent establishment in the country.

The taxable income is calculated by taking the total revenue and subtracting all allowable deductible expenses such as rent, salaries, operational costs, and depreciation. Businesses must register with the Federal Tax Authority (FTA) and file returns within 9 months of the end of their financial year. Failure to register or file on time can result in penalties.

Free Zone Tax Benefits and Qualifying Activities

Free zone companies can benefit from a 0% corporate tax rate on income derived from qualifying activities. These include manufacturing, logistics, headquarter services, treasury management, and intellectual property holding. To qualify, the business must maintain adequate substance in the UAE, including physical office space, employees, and core income-generating activities conducted within the free zone. Non-qualifying income, such as revenue from mainland customers or services not listed in the qualifying activities, is taxed at the standard 9% rate. Companies operating in free zones should carefully assess which portion of their income qualifies for the 0% rate.

Small Business Relief for UAE Companies

The UAE corporate tax law provides small business relief for companies with annual revenue of less than AED 3,000,000. Eligible businesses can elect to be treated as having no taxable income, effectively paying 0% corporate tax. This relief is available for tax periods starting on or after June 1, 2023, and applies to both mainland and free zone businesses that meet the revenue threshold. The relief is intended to reduce the compliance burden on micro and small enterprises during the initial years of the corporate tax regime. Businesses should note that this relief may not be available indefinitely and should plan for the standard tax rates.

How to File UAE Corporate Tax with FTA

All taxable businesses must register for corporate tax with the Federal Tax Authority (FTA) through the EmaraTax portal. The registration process involves submitting trade license details, financial information, and shareholder details. Once registered, businesses receive a Tax Registration Number (TRN). Corporate tax returns must be filed electronically within 9 months of the end of the relevant financial year. For example, if your financial year ends on December 31, 2025, your return is due by September 30, 2026. Payments are due by the same deadline. Businesses should maintain proper accounting records for at least 7 years and consider engaging a tax advisor to ensure compliance with all FTA requirements.