UAE Corporate Tax Calculator 2026

How UAE Corporate Tax Is Calculated in 2026

UAE corporate tax is applied to taxable income, not revenue. Taxable income is your accounting profit prepared under IFRS or IFRS for SMEs, adjusted for items specifically required or allowed by Federal Decree-Law No. 47 of 2022 — non-deductible expenses (such as fines, most entertainment costs, and 50% of client entertainment), exempt income (qualifying dividends and capital gains), and reliefs (tax losses carried forward, group loss offset).

The rate schedule is deliberately simple. The first AED 375,000 of taxable income is taxed at 0%. Every dirham above that threshold is taxed at 9%. This calculator applies that schedule directly to whatever taxable income you enter, producing the corporate tax due and an effective rate.

When you toggle the Small Business Relief option, the calculator zeroes out the tax due. Small Business Relief, established by Ministerial Decision No. 73 of 2023, allows a resident taxable person whose revenue is at or below AED 3 million in the current and all previous tax periods to be treated as having no taxable income for that period. It is an election made inside the corporate tax return, and it is currently available for tax periods ending on or before 31 December 2026. Electing SBR forfeits loss carry-forward for the electing period, so it is not always the best answer for a growing loss-making business.

The calculator is a planning estimate. Actual tax due depends on entity-specific factors that no single input can capture: free zone qualifying income analysis, transfer pricing adjustments, group treatment, loss relief, and specific elections made in the return. It is not a substitute for a prepared return. When you're ready to file, we prepare and review it end to end from AED 499.