UAE Corporate Tax Calculator — 9% Above AED 375,000, Free Zone Qualifying Income and the Compliance Triggers

The rules applied

Under the Corporate Tax Law (Federal Decree-Law No. 47 of 2022) a taxable person pays 0% on taxable income up to AED 375,000 and 9% above it. A free zone company is a Qualifying Free Zone Person — 0% on qualifying income and 9% on the rest, with no AED 375,000 band — only if it maintains adequate substance in the free zone, earns qualifying income, keeps non-qualifying revenue within the de minimis limit (the lower of 5% of total revenue or AED 5 million), prepares audited financial statements, complies with transfer pricing and has not elected out; failing any condition removes the status for that period and the following four. Audited financial statements are mandatory for every taxable person with revenue above AED 50 million and for every Qualifying Free Zone Person. A transfer pricing disclosure form is filed with the return where related-party transactions exceed AED 40 million in aggregate (with categories above AED 4 million) or payments to connected persons exceed AED 500,000; a master file and local file are required where revenue is AED 200 million or more or the group’s consolidated revenue is AED 3.15 billion or more. Groups with consolidated revenue of EUR 750 million or more are within the 15% domestic minimum top-up tax from 2025. Every company must register with the Federal Tax Authority (late registration penalty AED 10,000) and file its return and pay within nine months of the end of the tax period. Read our note on qualifying income.

Disclaimer. These calculators are provided for general information only. They apply the Indian and UAE tax rules as we understand them for the year stated and are not legal, tax or professional advice, and they do not create a client relationship. Your actual liability depends on your complete facts, on documents we have not seen and on law that changes; please confirm any figure with us before relying on it or acting on it. I. H. Khan and Associates accepts no liability for decisions taken on the basis of these tools. Nothing you enter leaves your browser unless you choose to send the result to us. Section numbers are those of the Income-tax Act, 2025, in force from 1 April 2026, with the familiar 1961 Act number in brackets; the rules are unchanged — see our section map.