UAE corporate tax calculator for taxable income

Under Article 3 of Federal Decree-Law No. 47 of 2022, a resident taxable person pays 0% on the portion of taxable income up to a threshold and 9% on the portion above it. Cabinet Decision No. 116 of 2022 set that threshold at AED 375,000.

So the formula is simple: subtract AED 375,000 from taxable income, and if the result is positive, multiply it by 9%. If taxable income is AED 375,000 or less, the tax is nil, although the business must still register and file a return.

• Tax = (taxable income − AED 375,000) × 9%, where the result is above zero
• Effective rate = tax ÷ taxable income
• Return and payment: within 9 months of the end of the tax period

A mainland IT services company in Abu Dhabi has a calendar-year tax period. Its accountant adjusts accounting profit to taxable income and then applies the bands.

• Accounting net profit for the year: AED 1,146,000
• Add back 50% of client entertainment, a non-deductible amount: AED 21,000
• Add back a fine paid to a government authority: AED 3,000
• Taxable income: AED 1,170,000
• First AED 375,000 at 0%: nil
• Remaining AED 795,000 at 9%: AED 71,550 corporate tax due, an effective rate of about 6.1%

Taxable income starts from accounting profit and then moves through adjustments: non-deductible expenses, exempt income such as qualifying dividends, the interest limitation rule, transfer pricing between related parties and the use of tax losses carried forward. The example above shows two common add-backs; your list will differ. Confirm each adjustment against FTA guidance or with a registered tax agent.

Some businesses pay a different rate or none at all. A qualifying free zone person can pay 0% on qualifying income. A small resident business with revenue up to AED 3 million can elect small business relief. Members of large multinational groups may face a different rate. Our separate checkers cover the free zone and small business cases.

HelloBooks keeps the ledger that feeds the computation. Ask the AI agent "what will my corporate tax be this year?" and it pulls year-to-date profit, lists the accounts that usually need an add-back (entertainment, fines, donations) and drafts a 9% computation you can open line by line.

Your accountant reviews the adjustments and files the return on EmaraTax. The agent never submits anything to the FTA. If you want extra tax-adjustment accounts or a custom computation report, the team can configure it after a call booked at /book-a-demo.