UAE Corporate Tax · Article 3 · FDL 47 of 2022

The AED 375,000 line

Corporate Tax is 0% on taxable income up to AED 375,000 and 9% on the part above it. Move the slider or type a figure to see how the two tiers split, and, if your revenue is AED 3,000,000 or less, what Small Business Relief would save you.

Taxable income for the period

AED

This is taxable income after deductions and adjustments, not revenue.

Annual revenue (for Small Business Relief)

AED

Revenue of AED 3,000,000 or less may let you elect 0% for the period.

Corporate Tax due

AED11,250

Effective rate 2.25% of taxable income

375,000

Taxed at 0%Taxed at 9%

First AED 375,0000%

Taxed portion (above 375,000)125,000

Tax on that portion at 9%11,250

Small Business Relief · Art 21 / MD 73 of 2023

Tax without relief11,250

Tax if you elect Small Business ReliefAED 0

You could save11,250

Available to a resident business with revenue of AED 3,000,000 or less, for tax periods ending on or before 31 December 2026. It is an election, and you still register and file.

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How it works. Under Article 3, Federal Decree-Law No. 47 of 2022, the rate is 0% on taxable income up to AED 375,000 and 9% on the excess. It is a band, not a cliff: crossing AED 375,000 taxes only the part above the line. Small Business Relief sits under Article 21 and Ministerial Decision No. 73 of 2023, and turns on revenue of AED 3,000,000 or less, a different figure from the AED 375,000 income threshold.

General information, not tax advice. Rates, thresholds and reliefs are set by the Federal Tax Authority and depend on your circumstances. Figures shown are illustrative.