Calculate UAE 9% Corporate Tax for mainland and freezone businesses. Accurate for FY2024 onwards under Federal Decree-Law No. 47 of 2022.
UAE Corporate Tax Calculator (2024/25)
Corporate Tax Due
Net Profit After Tax
Effective Tax Rate
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UAE Corporate Tax: Complete Guide (2024/2025)
The UAE introduced Corporate Tax (CT) under Federal Decree-Law No. 47 of 2022, effective for financial years starting on or after 1 June 2023. This ended the UAE's long history of zero corporate taxation for most businesses.
UAE Corporate Tax Rates
0% on taxable income up to AED 375,000
9% on taxable income above AED 375,000
0% for Qualifying Freezone Persons on Qualifying Income
Small Business Relief: 0% for businesses with revenue under AED 3 million (election required)
Who Must Register?
All UAE businesses (mainland and freezone) must register for Corporate Tax with the Federal Tax Authority (FTA) — even if they expect to pay zero tax. Registration is done via the EmaraTax portal. Penalties for late registration apply from mid-2024.
What Is Taxable Income?
Taxable income is generally the accounting net profit adjusted for certain items: exempt income (UAE-sourced dividends, capital gains from qualifying participations), non-deductible expenses (entertainment over 50%, fines, bribes), and transfer pricing adjustments for related-party transactions.
Freezone Companies
Freezone companies can still benefit from 0% CT on Qualifying Income, but must meet strict conditions: they must be a Qualifying Freezone Person, earn Qualifying Income (defined in Cabinet Decision No. 55 of 2023), maintain adequate substance in the UAE, and not elect to be treated as a mainland taxable person.
Frequently Asked Questions
UAE Corporate Tax applies to financial years beginning on or after 1 June 2023. For a company with a calendar year (Jan–Dec), their first CT tax year was 1 January 2024 – 31 December 2024, with the first tax return due 9 months after year end (September 2025).
Natural persons (individuals) conducting business or business activities are subject to CT only if their annual turnover exceeds AED 1 million. Below AED 1 million, individual freelancers are not subject to CT. This threshold covers income from all business activities in the UAE.
Dividends received from UAE resident companies are generally exempt. Capital gains from selling shares in qualifying subsidiaries are also exempt under the Participation Exemption, subject to conditions (5% minimum ownership, 12 months minimum holding period, 9% tax on subsidiary's profits).
UAE VAT (5%) is a tax on consumption — charged on sales and collected from customers, then remitted to the FTA. Corporate Tax (9%) is a tax on business profits — calculated on the company's net income after expenses. A business can be liable for both simultaneously.