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UAE Corporate Tax Calculator

Calculate your UAE corporate tax — 0% up to AED 375,000, 9% above, Free Zone QFZP mode, Small Business Relief, and Pillar Two.

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UAE Corporate Tax 2026 — Complete Guide

The UAE introduced corporate tax (CT) via Federal Decree-Law No. 47 of 2022, effective for financial years starting on or after 1 June 2023. For most businesses, this means the first corporate tax return covers the period starting 1 January 2024. The UAE CT regime has been praised for its simplicity relative to comparable jurisdictions — but the interaction between mainland rates, Free Zone qualifying income rules, and Pillar Two creates complexity that can significantly change your liability.

The headline rate is 9% — one of the lowest corporate tax rates among G20 countries — but the effective rate for most small and mid-size UAE businesses is considerably lower because the first AED 375,000 of taxable income is taxed at 0%.

UAE Corporate Tax Rate Table

ScenarioTax RateCondition
Mainland — standard tier 10%Taxable income ≤ AED 375,000
Mainland — standard tier 29%Taxable income > AED 375,000 (on the excess)
Small Business Relief0%Revenue ≤ AED 3M, elected, period ending before 31 Dec 2026
Qualifying Free Zone Person0%On qualifying income — adequate substance + de minimis NQ income
Free Zone non-qualifying income9%Income from mainland or non-qualifying activities
Natural person / individual0%Personal income, employment, dividends, capital gains
Large MNE — Pillar Two (QDMTT)15%Global group revenue > EUR 750M, from FY starting Jan 2025

Source: UAE Ministry of Finance, Federal Decree-Law No. 47 of 2022. Last verified June 2026.

Worked Examples

Mainland LLC — AED 1M income

Revenue: AED 4M · Taxable income: AED 1,000,000

0% × AED 375,000 = AED 0 · 9% × AED 625,000 = AED 56,250

AED 56,250 tax · 5.63% effective rate

Small business with SBR elected

Revenue: AED 2.5M · Taxable income: AED 600,000

Small Business Relief elected — revenue ≤ AED 3M

AED 0 tax · 0% effective rate

Free Zone — 70% qualifying income

Taxable income: AED 2M · 70% qualifying, 30% non-qualifying

0% × AED 1.4M = AED 0 · 9% × AED 600,000 = AED 54,000

AED 54,000 tax · 2.7% effective rate

Frequently Asked Questions

What is the UAE corporate tax rate in 2026?▾
The UAE corporate tax rate is 0% on taxable income up to AED 375,000 and 9% on income above AED 375,000. Large multinational groups (global revenue > EUR 750 million) may be subject to a 15% Qualifying Domestic Minimum Top-up Tax (QDMTT) under Pillar Two.
When did UAE corporate tax come into effect?▾
UAE corporate tax came into effect for financial years starting on or after 1 June 2023. A company with a financial year ending 31 December became subject to UAE CT from 1 January 2024. The legislation is Federal Decree-Law No. 47 of 2022 on Taxation of Corporations and Businesses.
Are free zone companies subject to UAE corporate tax?▾
Qualifying Free Zone Persons (QFZPs) can benefit from a 0% corporate tax rate on qualifying income. To maintain this status, they must have adequate substance in the UAE, derive qualifying income, and ensure non-qualifying income stays within the de minimis threshold (5% of total revenue or AED 5 million, whichever is lower). Non-qualifying income is taxed at 9%.
What is the UAE Small Business Relief?▾
Small Business Relief allows businesses with revenue of AED 3 million or less to elect to be treated as having no taxable income, effectively paying 0% corporate tax. This relief is available for tax periods ending on or before 31 December 2026. Businesses must actively elect SBR on their corporate tax return.
Do individuals pay corporate tax in the UAE?▾
No. UAE corporate tax does not apply to individuals on their personal income, employment income, dividends received from personal investments, or capital gains on personal assets. Natural persons are exempt unless they conduct a business activity that requires a commercial license.
What is Pillar Two and does it apply in the UAE?▾
Pillar Two is the OECD's Global Minimum Tax framework, requiring large multinational groups (consolidated global revenue exceeding EUR 750 million) to pay an effective tax rate of at least 15%. The UAE implemented a Qualifying Domestic Minimum Top-up Tax (QDMTT) to ensure the 15% minimum is collected domestically before other countries can top up. This applies from financial years starting on or after 1 January 2025.
What income is exempt from UAE corporate tax?▾
Several categories are exempt: income of UAE government entities and sovereign wealth funds, income of qualifying public benefit entities, income of qualifying investment funds, dividends and capital gains from qualifying shareholdings (participation exemption), and income of approved pension and social security funds.
Do I need to register for UAE corporate tax?▾
Yes. All UAE businesses — including free zone entities and non-resident companies with a UAE permanent establishment — must register with the Federal Tax Authority (FTA) for corporate tax purposes, even if they are exempt or their taxable income is zero. Registration is done through the FTA's EmaraTax portal.

Also calculate UAE VAT

UAE also charges 5% VAT on most goods and services. If your revenue exceeds AED 375,000 you are required to register for VAT. Use the UAE VAT Calculator to calculate VAT on your sales and purchases.

For informational purposes only. Not tax advice. Consult a qualified UAE tax advisor before filing. Formula based on Federal Decree-Law No. 47 of 2022. Last verified June 2026.

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