UAE Corporate & Self-Employed Tax Calculator 2026
Estimate your tax liability under the UAE Federal Tax Authority (FTA) regime. Calculate mainland company tax, Self-Employed / Freelancer exemptions (AED 1M threshold), Small Business Relief (SBR up to 3M), and Qualifying Free Zone 0% rates.
UAE Corporate Tax Framework
- Small Business Relief: UAE resident entities with revenue ≤ AED 3,000,000 can elect for SBR to pay 0% tax for tax periods starting on or after June 1, 2023 through 2026.
- Standard 9% Rate: If taxable profit exceeds AED 375,000, 9% is applied exclusively to the portion above AED 375,000.
- Free Zone Qualifying Persons: Taxed at 0% on Qualifying Income, and 9% on Non-Qualifying Income (subject to de minimis requirements).
Understanding UAE Corporate Tax (Federal Decree-Law No. 47)
Essential compliance rules, tax brackets, Small Business Relief thresholds, and filing obligations in the United Arab Emirates.
The UAE Corporate Tax Formula
Under Article 3 of Federal Decree-Law No. 47 of 2022, corporate tax is levied at 0% on net profits up to 375,000 AED, and 9% on net profit exceeding that benchmark. If your gross annual revenue does not exceed 3,000,000 AED, you can elect for Small Business Relief (SBR), reducing your tax liability to zero AED regardless of net profit margin.
What is the UAE Corporate Tax rate for 2026?
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In-Depth Corporate Tax Guides & Statutory Analysis
Explore our comprehensive library of 7 authoritative guides covering Federal Decree-Law No. 47 of 2022 & Ministerial Decisions No. 73, 139 & 265 of 2023.
UAE Small Business Relief (SBR) Guide: AED 3 Million Threshold & Election Rules (Ministerial Decision No. 73 of 2023)
Under Article 21 of Federal Decree-Law No. 47 of 2022 and Ministerial Decision No. 73 of 2023, resident UAE businesses and self-employed persons whose gross revenue does not exceed AED 3,000,000 in the current and all previous tax periods can elect for Small Business Relief (SBR) — paying 0% UAE Corporate Tax with simplified EmaraTax filing.
Qualifying Free Zone Person (QFZP) UAE: How to Keep 0% Corporate Tax Under Ministerial Decision No. 265 of 2023
Forming a company in a Dubai or UAE Free Zone (such as DMCC, DIFC, ADGM, JAFZA, IFZA, or Meydan) does not automatically grant 0% Corporate Tax. Under Article 18 of Federal Decree-Law No. 47 of 2022 and Ministerial Decision No. 265 of 2023, a Free Zone entity must meet strict Qualifying Free Zone Person (QFZP) conditions, maintain economic substance, prepare audited financial statements, and pass the De Minimis test.
UAE Corporate Tax for Freelancers & Influencers: The AED 1 Million Turnover Rule (Cabinet Decision No. 49 of 2023)
Under UAE Cabinet Decision No. 49 of 2023, natural persons (individuals operating as freelancers, social media influencers, independent consultants, or sole establishments) are completely outside the scope of UAE Corporate Tax unless their annual gross turnover from business activities exceeds AED 1,000,000 in a Gregorian calendar year.
UAE Corporate Tax Registration, Filing Deadlines & FTA Late Penalties (EmaraTax Complete Checklist)
Under Article 48 of the UAE Corporate Tax Law and Cabinet Decision No. 75 of 2023, every UAE business must register on the Federal Tax Authority (FTA) EmaraTax portal within its prescribed timeline and file its Corporate Tax Return (plus settle any tax due) within 9 months from the end of its financial year. Late registration triggers an immediate AED 10,000 administrative penalty.
Deductible vs Non-Deductible Business Expenses Under UAE Corporate Tax (Entertainment, Interest & Salaries)
Under Article 28 of Federal Decree-Law No. 47 of 2022, UAE Corporate Tax is levied on Net Taxable Income — not gross revenue. Every legitimate operating expense incurred wholly and exclusively for your business reduces your taxable profit at 9%. However, Articles 29 through 33 restrict deductions for client entertainment (50% cap), net interest expense (30% EBITDA cap), bribes, fines, and dividends.
UAE Transfer Pricing & Connected Persons Rules: How Owner & Director Salaries Are Taxed (Article 34 & 36)
Because UAE personal employment salaries are taxed at 0% while company profits above AED 375,000 are taxed at 9%, many SME owners ask: "Can I just pay all of my company profit to myself as a director bonus or management salary?" Under Article 36 of Federal Decree-Law No. 47 of 2022, any payment to a "Connected Person" (owner, director, officer, or relative) is ONLY deductible if it corresponds to the Arm's Length market value of services actually performed.
UAE VAT (5%) vs Corporate Tax (9%): Complete Dual-Compliance Guide for Dubai SMEs
Every business and freelancer operating in the United Arab Emirates must navigate two separate federal taxes administered by the Federal Tax Authority (FTA) on the EmaraTax portal: the 5% Value Added Tax (VAT, effective since 2018) and the 9% Corporate Tax (effective since June 2023). While VAT is an indirect consumption tax charged on gross invoices above AED 375,000 turnover, Corporate Tax is a direct tax levied on annual net profit.