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The UAE introduced federal Corporate Tax (CT) for financial years starting on or after 1 June 2023, administered by the Federal Tax Authority (FTA). It applies to the taxable income of mainland companies, Free Zone entities, and other businesses licensed in the UAE, with a small number of exemptions such as government entities and qualifying public benefit organisations.
Taxable income up to AED 375,000 is taxed at 0%, and the remainder is taxed at 9%. This band applies progressively, not as a cliff. Free Zone businesses that qualify as a Qualifying Free Zone Person (QFZP) can continue to pay 0% on qualifying income, while their non-qualifying income is taxed at 9% from the first dirham. Eligible small businesses with revenue at or below AED 3,000,000 can elect for Small Business Relief and pay no CT at all. Use the calculator above to estimate what you owe in seconds.
No signup, no spreadsheet. Pick your entity type, enter your figures, and get a breakdown ready for your Corporate tax return.
UAE Corporate Tax rate guide
Three common business scenarios, exactly how each calculation runs.
Accounting net profit
AED 600,000
0% band
AED 0
9% band
AED 20,250
CT payable
AED 20,250
Formula
(600,000 − 375,000) × 9% = 20,250
Qualifying income
AED 500,000
Non-qualifying income
AED 150,000
CT payable
AED 13,500
Formula
150,000 × 9% = 13,500 (no 375,000 band)
| Rate | Category | Applies To | AED 375,000 Band |
|---|---|---|---|
| 0% Standard | Mainland / Standard | Taxable income up to AED 375,000 | ✓ Applies |
| 9% Standard | Mainland / Standard | Taxable income above AED 375,000 | — |
| 0% QFZP | Free Zone Qualifying Income | Free Zone entities with QFZP status, on qualifying income | ✗ Does not apply |
| 9% QFZP | Free Zone Non-Qualifying Income | Free Zone entities, non-qualifying income, taxed from the first dirham | ✗ Does not apply |
| 0% SBR | Small Business Relief | Elective, revenue ≤ AED 3,000,000, tax periods ending on or before 31 Dec 2026 | ✗ Not applicable (treated as nil) |
| 15% DMTT | Domestic Minimum Top-up Tax | MNE groups with global consolidated revenue ≥ EUR 750M, FYs from 1 Jan 2025 | Separate regime |
BCL Globiz has handled Corporate tax Registration return filing, and FTA advisory for 1,000+ businesses across the UAE. If your numbers don’t add up, or you’re unsure which rate applies — our advisors will sort it out fast.
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