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UAE Corporate Tax · Article 47 · FDL 47 of 2022

Foreign tax credit calculator

Paid tax abroad on income also taxable here? See how much of it you can credit against UAE Corporate Tax, where the cap bites, and what you are left paying.

AED
AED
%

9% is the standard rate. Use 0% if this income sits in your tax-free band.

Net UAE Corporate Tax on this income
AED0
Foreign tax covers the UAE tax in full
UAE tax on the income90,000
Foreign tax credited90,000
UAE tax still to pay0
Foreign tax above the cap (not refunded)60,000

How it works. Under Article 47, FDL 47 of 2022, foreign tax paid on income that is also taxable in the UAE can be credited against the UAE Corporate Tax on that income, but the credit cannot exceed the UAE tax on it. Where the foreign tax is higher, the excess is generally not refunded or carried forward. The credit relieves double taxation; it does not turn a foreign overpayment into a UAE refund.

General information, not tax advice. Figures are illustrative and ignore treaty positions and the detail of how income is characterised. Confirm your position against the current legislation and with your adviser.