UAE corporate tax rates and the AED 375,000 threshold
Under Federal Decree-Law No. 47 of 2022, most taxable persons pay 0% on the first AED 375,000 of taxable income and 9% on taxable income above that amount. Revenue is not the same as taxable income: the calculation normally begins with accounting net profit, followed by tax adjustments.
Standard 0% band
AED 375,000
Tax above the band
9%
SBR revenue ceiling
AED 3 million
Small Business Relief eligibility through 2026
Ministerial Decision No. 73 of 2023 allows an eligible resident person to elect Small Business Relief for tax periods ending on or before 31 December 2026. Revenue must not exceed AED 3 million in the relevant period or any earlier tax period beginning on or after 1 June 2023. Artificially separating a business to meet the threshold can trigger the anti-abuse rules.
Qualifying Free Zone Persons and members of multinational groups required to prepare UAE Country-by-Country Reports cannot claim the relief. An election treats the eligible business as having no taxable income for that period, but it also affects the use of losses and net interest expenditure arising during the relief period.
Adjustments included in this calculator
- Entertainment expenditure: 50% is treated as non-deductible.
- Fines and penalties: entered amounts are added back as non-deductible.
- Exempt income: entered qualifying dividends and participation income reduce the estimate.
- Realization basis: entered unrealized gains excluded under an election reduce the estimate.
- Tax losses: utilization is capped at 75% of income before the loss offset.
Corporate tax records and filing
Keep financial statements and supporting schedules for revenue, deductible expenditure, exempt income, related-party transactions, and tax losses. Confirm the result against current Federal Tax Authority guidance before filing a return or making an SBR election.