How UAE Corporate Tax Works: The 9% Rate Explained
The UAE charges 0% corporate tax on profits up to AED 375,000 and 9% above it. Here's how to estimate your liability and why clean books matter more than ever.
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The UAE corporate tax basics
Since June 2023, the UAE applies a federal corporate tax on business profits:
- 0% on taxable income up to AED 375,000
- 9% on taxable income above AED 375,000
That keeps the UAE among the most competitive regimes in the world — but it still means most profitable businesses now need to register, file, and pay.
What's taxable
Corporate tax applies to your accounting profit, adjusted for specific add-backs and reliefs. The UAE Corporate Tax Calculator gives you a quick estimate straight from your net profit.
A simple example
On a taxable profit of AED 500,000:
- First AED 375,000 → taxed at 0% = AED 0
- Remaining AED 125,000 → taxed at 9% = AED 11,250
- Total corporate tax: AED 11,250 — an effective rate of just 2.25%.
Why clean books matter more than ever
Corporate tax is calculated from your financial statements. If your records are messy, your taxable profit — and your tax bill — could be wrong. Accurate, year-round bookkeeping is now a compliance requirement, not a nice-to-have.
From estimate to filing
Use the calculator for a quick projection, then keep audit-ready records in Pyalm Books, which is built for UAE VAT, corporate tax, and e-invoicing in one place.