United Arab EmiratesA company does not share the natural-person AED 1 million turnover exemption. The Small Business Relief election checks current and prior-period revenue, residence and excluded cases. Accounting profit requires explicit tax adjustments; future periods are projections under currently enacted legislation.
Formula
Standard Corporate Tax = 9% × max(0, taxable income − AED 375,000). Eligible Small Business Relief treats taxable income as zero. Natural-person businesses enter scope when applicable calendar-year turnover exceeds AED 1 million.
When to use this calculator
A UAE salary comparison and a Corporate Tax estimate answer different questions. This calculator distinguishes the supported salary situation from business activity and the standard Corporate Tax model, preventing business turnover or profit from being treated as though it were simply an employee's salary.
Information to prepare
Identify the taxpayer and income type before selecting a mode. For natural-person business activity, review the turnover test separately from taxable income. If using Small Business Relief, check all eligibility conditions and the relevant period rather than selecting it solely because the resulting tax would be lower.
How to interpret the result
Turnover, profit, taxable income and the tax cost of an activity are different concepts. An eligibility test may depend on revenue even when liability uses another base. Reliefs and credits also require a distinction between reducing taxable income and adjusting the resulting tax. Before comparing businesses or periods, identify the taxpayer, regime, year and prior payments included in the estimate. A favourable arithmetic result cannot itself establish eligibility for an exemption or an optional business regime.
A practical comparison
When comparing business scenarios, separate revenue, deductible expenses and taxable profit. Do not transfer a turnover threshold directly to the tax base. VAT on sales or imports uses a transaction base and should be calculated separately from the business's income-tax position.
Check your calculation step by step
- Match the figures to the selected period and use AED for monetary inputs. If you start with a document in another currency or covering several periods, resolve that difference before entering a combined amount.
- Calculate the documented case first. Then change one input at a time to compare scenarios. Keep the original values available so a change in the result can be traced to a particular assumption rather than several simultaneous edits.
- Read the component breakdown alongside the formula and examples below. If an official document differs, check the date, base, rounding and omitted concepts before changing a rate or treating the difference as an error.
Continue with a related calculation
These tools cover other questions in United Arab Emirates. Choose the one that matches the amount you want to check:
- VAT calculator in United Arab Emirates
UAE VAT at 5%, customs import base, reverse charge and eligible input-tax recovery.
If you are comparing countries
Open the relevant jurisdiction when comparing a move, an offer or a transaction abroad. Each tool uses its own currency, period and scope; its result should not be substituted into the current calculation.
Official sources
- UAE Ministry of Finance: MD 131/2026, relief extended through 2029Consulted: 2026-09-14
- FTA: MD 73/2023, conditions as subsequently amendedConsulted: 2026-09-14
- FTA: Corporate Tax general guideConsulted: 2026-09-14
- FTA: natural-person business scopeConsulted: 2026-09-14
- FTA: Small Business Relief conditions (original end date superseded by MD 131/2026)Consulted: 2026-09-14