UAE Corporate Tax
Calculator 2026.
Work out your Corporate Tax from taxable income or straight from accounting profit, with the free zone (QFZP) rules, Small Business Relief, tax losses and your filing deadline built in. Plus a VAT calculator. A quick indication: for a definitive position, talk to our tax team.
Accounting profit after the adjustments the Corporate Tax Law allows. Not sure? Start from accounting profit instead.
From your financial statements. Enter a loss with a minus sign.
Client entertainment is 50% deductible, so half is added back. Other items: owner drawings, Corporate Tax itself, recoverable input VAT, foreign income tax. Staff events are fully deductible. See deductible and non-deductible expenses.
Interest and tax losses
Losses offset up to 75% of taxable income each year. See tax losses.
Only matters above AED 12 million of net interest: the deduction is then capped at the higher of AED 12 million and 30% of EBITDA. See the interest limitation rule.
Non-qualifying revenue must stay within the lower of 5% of revenue and AED 5 million, or 0% status is lost for this year and the next four. See QFZP conditions.
Show the computation
Registration is mandatory — turnover is above the AED 375,000 threshold.
These are estimates, not a tax filing.
Your real position depends on adjustments, exemptions, free-zone status and reliefs. Our tax team will give you the exact number and handle the filing.
Indicative only, based on Federal Decree-Law No. 47 of 2022 and its decisions on free zones (Cabinet Decision No. 100 of 2023), Small Business Relief (Ministerial Decision No. 73 of 2023), interest and losses, and the UAE VAT Law, current as of October 2026. It does not cover every adjustment, for example transfer pricing, group relief, the realisation basis, foreign tax credits or the Domestic Minimum Top-up Tax, and it is not tax advice. Figures should be confirmed with a qualified tax adviser. See our Tax practice.
UAE Corporate Tax rates for 2026
| Who or what | Rate | Notes |
|---|---|---|
| Taxable income up to AED 375,000 | 0% | Once per taxable person per year |
| Taxable income above AED 375,000 | 9% | Mainland and non-qualifying free zone companies |
| Qualifying Free Zone Person: qualifying income | 0% | If every QFZP condition is met |
| Qualifying Free Zone Person: other income | 9% | No AED 375,000 band |
| Small Business Relief | Nil | Revenue AED 3M or less, periods ending by 31 Dec 2026 |
| Multinational groups, EUR 750m+ | 15% minimum | Domestic Minimum Top-up Tax |
How the calculation works
- Start from accounting profit. Add back what the law does not allow: fines, half of client entertainment, non-qualifying donations, drawings. Deductible expenses
- Take out exempt income, such as dividends from UAE companies and qualifying participations. Participation exemption
- Apply losses brought forward, up to 75% of the year’s taxable income. Tax losses
- Apply the rate: 0% to AED 375,000 and 9% above, or the QFZP split. The AED 375,000 threshold · QFZP conditions
- File and pay within nine months of your year end. Corporate Tax deadlines · Penalties
What is the UAE corporate tax rate?
Corporate tax is 0% on taxable income up to AED 375,000 and 9% above AED 375,000. Large multinational groups may also face a 15% domestic minimum top-up tax under the OECD Pillar Two rules.
What is Small Business Relief?
A resident business with revenue of AED 3,000,000 or less (in the current and all prior tax periods) can elect to be treated as having no taxable income, so no corporate tax is due for that period. Conditions and time limits apply under the relevant Ministerial Decision.
What is the VAT rate in the UAE?
The standard VAT rate is 5%. Certain supplies are zero-rated (0%) or exempt.
When must I register for VAT?
Registration is mandatory once taxable supplies exceed AED 375,000 over the past 12 months (or are expected to in the next 30 days). Voluntary registration is available above AED 187,500.
Do Free Zone companies pay 0% corporate tax?
Only as a Qualifying Free Zone Person (QFZP). A QFZP pays 0% on qualifying income and 9% on all other taxable income, with no AED 375,000 band. Non-qualifying revenue must stay within the lower of 5% of revenue and AED 5 million, and the substance, audit and transfer pricing conditions must be met, or 0% status is lost for that year and the next four.
How are tax losses used?
Losses carry forward with no time limit and can offset up to 75% of taxable income in a later year. There is no carry back, and a loss made in a year you elect Small Business Relief cannot be carried forward.
When is the Corporate Tax return due?
File the return and pay the tax within nine months of your year end. For a 31 December 2025 year end, that is 30 September 2026. See Corporate Tax deadlines.
Do I need transfer pricing documentation?
Related-party and connected-person dealings must be at arm's length, with a TP disclosure form filed alongside the return. A Master File and Local File are required if the group's consolidated revenue is AED 3.15bn or more, or your revenue is AED 200m or more.
When do Pillar Two and the 15% minimum tax apply?
For multinational groups with consolidated revenue of EUR 750m (about AED 3.15bn) or more in at least two of the last four years. Those groups face Country-by-Country Reporting, and the UAE Domestic Minimum Top-up Tax of 15% applies for financial years starting on or after 1 January 2025.
Find your position.
Free Zone or Mainland, QFZP 0% status, related-party transfer pricing, and the Pillar Two global minimum tax — answered in four questions.
Standard 0% / 9%
Mainland and non-qualifying Free Zone companies pay 0% on the first AED 375,000 of taxable income and 9% above.
0% on qualifying income
A Qualifying Free Zone Person pays 0% on qualifying income and 9% on non-qualifying income, when the conditions are met continuously.
Transfer pricing
Related-party and inter-group transactions must be at arm's length, with a disclosure form and, above set thresholds, Master and Local files.
Pillar Two 15%
Multinational groups over EUR 750m face Country-by-Country Reporting and the UAE 15% Domestic Minimum Top-up Tax from 2025.