Corporate Tax Calculator
UAE 2026
Estimate your 9% Corporate Tax from accounting profit through guided adjustments — Small Business Relief and Free Zone QFZP rules included.
Calculate CTExamples
| Scenario | Revenue (AED) | Profit (AED) | Add-Backs (AED) | Deductions (AED) | Taxable (AED) | CT (AED) |
|---|---|---|---|---|---|---|
| Small consultancy | 800,000 | 250,000 | 0 | 0 | 250,000 | 0 |
| Growing e-commerce | 5,000,000 | 600,000 | 45,000 | 0 | 645,000 | 24,300 |
| Established trading co. | 12,000,000 | 1,800,000 | 120,000 | 200,000 | 1,720,000 | 121,050 |
| Startup with losses | 2,000,000 | -150,000 | 0 | 0 | -150,000 | 0 |
| Free Zone (QFZP) | 8,000,000 | 1,200,000 | 0 | 0 | 1,200,000 | 0* |
*Assuming all income qualifies under QFZP conditions. Non-qualifying income would be taxed at standard rates.
Understanding UAE Corporate Tax
UAE Corporate Tax at a Glance
A federal tax on business profits introduced under Federal Decree-Law No. 47 of 2022. Applies to mainland and free zone entities, with 0% on the first AED 375,000 of taxable income.
Common Non-Deductible Expenses
- Fines & penalties — government fines, FTA penalties, traffic fines
- Personal expenses — owner's personal car, travel, family costs
- Entertainment (50%) — client dinners, vendor hospitality (50% disallowed)
- Unsupported expenses — missing or incomplete tax invoices
- Donations — to non-FTA-approved organisations
Small Business Relief (SBR)
- Threshold — revenue ≤ AED 3,000,000 in current and all prior periods
- Effect — taxable income treated as zero (0% CT)
- Expires — 31 December 2026 (last eligible period)
- Filing — still must register and file a simplified CT return
Free Zone Corporate Tax
- QFZP — 0% on qualifying income if all conditions met
- Conditions — substance, qualifying activities, arm's-length dealings, audited financials
- De minimis — non-qualifying revenue must stay below AED 5M or 5% of total revenue
- Non-QFZP — taxed at standard 0% / 9% rates like mainland
Tax Loss Carry-Forward
- Carry forward — losses can be carried indefinitely
- 75% cap — only offset up to 75% of taxable income per period
- Same entity — losses stay with the entity unless part of an approved UAE CT Tax Group
- Filing required — must still file CT return in loss years
Frequently Asked Questions
What is the UAE Corporate Tax rate?
In the UAE, typically, businesses pay a 0% corporate tax on the first AED 375,000 of taxable income and a 9% corporate tax on anything above that. However, Qualifying Free Zone Persons (QFZPs) pay 0% corporate tax on qualifying income.
Who needs to register for Corporate Tax?
Individuals involved in businesses with AED 1 million or more in turnover, all mainland and free zone companies, and branches of foreign entities must register for corporate tax with the Federal Tax Authority (FTA). Even businesses with zero taxable income must register and file corporate tax returns.
What is Small Business Relief?
Businesses with revenue of up to AED 3 million in the current and all prior tax periods can elect to pay 0% corporate tax under Small Business Relief (SBR). This scheme is in effect until the end of 2026, and it is not available for Free Zone Persons.
What counts as non-deductible expenses?
Non-deductible expenses, or expenses that cannot be subtracted from taxable income, include fines and penalties, personal or owner expenses, 50% of entertainment costs, donations to non-approved organisations, expenses without proper documentation, and any expenditure not incurred wholly and exclusively for business purposes. These expenses must be added back to your accounting profit when calculating taxable income.
How does Corporate Tax work for Free Zone companies?
A free zone company meeting all Qualifying Free Zone Person (QFZP) conditions will pay 0% corporate tax on qualifying income and 9% on non-qualifying income. A QFZP’s non-qualifying income must stay below the de minimis threshold, which is the lower of AED 5 million or 5% of total revenue. Free Zone companies that don’t meet QFZP conditions are taxed at standard mainland rates of 0% on income up to AED 375,000 and 9% for anything beyond that.
When is my Corporate Tax return due?
You must file your corporate tax returns within 9 months from the end of your tax period. For instance, if your financial year ends on 31st December 2025, your CT return will be due by 30th September 2026. If your CT return filing is delayed by 1 month, you must pay an AED 1,000 fine, and a fine of AED 2,000 applies for each subsequent month of delay. These fines are capped at AED 25,000. Check your exact deadline →
How to calculate Corporate Tax in the UAE?
You must first calculate your taxable income by making the appropriate adjustments to your accounting profit and then apply a 9% Corporate Tax rate on any income above AED 375,000. In the case of Qualifying Free Zone Persons, you must apply the 9% rate to non-qualifying income.
What is the AED 375,000 threshold for Corporate Tax?
In the UAE, mainland businesses pay 0% Corporate Tax on income up to AED 375,000 and 9% Corporate Tax on any income above that threshold.
How to file a Corporate Tax return on the EmaraTax portal?
Start by calculating your taxable income by adding/subtracting (whichever is appropriate) the tax adjustments to the accounting profit. Then, calculate your Corporate Tax due by applying the 9% rate to the taxable income. In the case of qualifying free zone persons (QFZP), the 9% rate is applied to the non-qualifying income. If you want to report a loss in the filed returns, ensure that you meet the FTA’s requirements. Then, log in to EmaraTax, select the taxable person you are filing for and the tax period, and check if all details are updated. If everything looks alright, enter the Corporate Tax due or the Tax Loss Carryforward in the appropriate field, submit the declaration, and pay the tax you owe. Please note that you must maintain relevant records and documents for 7 years following the end of the tax period.
What financial statements are needed for CT filing?
You can calculate your taxable income for CT filing based on your statement of profit or loss. However, you are required to maintain all records for at least 7 years following the end of the tax period.
What is the deadline for Corporate Tax return filing?
Businesses are required to file Corporate Tax returns and pay their dues within 9 months from the end of their fiscal year.
Do free zone companies need to file Corporate Tax returns?
Yes, free zone companies also need to file Corporate Tax returns since a 9% Corporate Tax is applicable on non-qualifying income.
What are the penalties for late Corporate Tax filing in the UAE?
Late filing of Corporate Tax returns carries a penalty of AED 1,000 for the first violation, and if you repeat this violation within 24 months, you must pay a penalty of AED 2,000.
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