Federal Tax Authority rules ยท updated for 2026
Free calculator built on the FTA rules โ 0% up to AED 375,000, 9% above it, with Small Business Relief and Free Zone treatment included. No signup, no spreadsheet.
Accounting net profit after adjustments โ your best estimate is fine.
Corporate tax due
11,250 AED
Deadline finder
Corporate tax returns are due within 9 months of your financial year end. Pick yours โ we'll do the calendar math.
File and pay by
30 September 2027
The rules, in plain language
UAE corporate tax applies to financial years starting on or after 1 June 2023. Almost every calculation comes down to these bands.
0%
The first AED 375,000 of taxable income is always taxed at zero โ for every mainland business, every year.
9%
Everything above the threshold is taxed at 9% โ one of the lowest headline rates in the world.
AED 3M
Revenue AED 3M or less? Elect relief on your return and pay nothing for that period โ available until end of 2026.
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0% on taxable income up to AED 375,000 and 9% above it. Qualifying Free Zone Persons pay 0% on qualifying income and 9% on non-qualifying income โ the AED 375,000 band doesn't apply to them.
Resident businesses with revenue of AED 3M or less in the current and all previous tax periods can elect the relief on their return, for tax periods ending on or before 31 December 2026. Once elected, you're treated as having no taxable income for that period.
Only on non-qualifying income. Meeting the Qualifying Free Zone Person conditions โ adequate substance, qualifying activities, transfer pricing compliance โ keeps qualifying income at 0%.
Only if annual turnover from licensed business activity exceeds AED 1M. Salaries, personal investments and personal real estate income are outside corporate tax entirely.
Every taxable person must register with the FTA. Returns are due within 9 months of your financial year end โ and registering late costs AED 10,000, so register early even if you'll owe nothing.
Laws, rules & what's next
From VAT in 2018 to e-invoicing in 2027 โ every law and deadline that shaped, or will shape, what you pay.
1 June 2023
Federal Decree-Law No. 47 of 2022 applies to financial years starting on or after this date.
1 January 2025
Groups with global revenue over โฌ750M now pay an effective 15% (OECD Pillar Two). SMEs unaffected.
31 December 2026
Last tax period eligible for the zero-tax election โ see the SBR guide.
2026 โ 2027
Phased mandatory e-invoicing, by revenue โ check your exact dates.
See the full timeline with sources โ ยท Latest updates โ
Worked examples
| Business | Revenue | Profit | Corporate tax | Why |
|---|---|---|---|---|
| Neighbourhood cafรฉ | AED 900K | AED 180K | AED 0 | Profit under AED 375K โ 0% band |
| Marketing agency | AED 2.4M | AED 650K | AED 0 | Elects Small Business Relief (revenue โค 3M) |
| Trading company | AED 8M | AED 1.2M | AED 74,250 | (1.2M โ 375K) ร 9% |
| Free zone consultancy, 70% mainland clients | AED 5M | AED 1M | AED 63,000 | QFZP: 9% on the AED 700K non-qualifying share |
Run your own numbers in the calculator above โ these examples assume no other adjustments.