The rates
Under Federal Decree-Law No. 47 of 2022 and Cabinet Decision No. 116 of 2022, taxable income up to AED 375,000 is taxed at 0 percent and taxable income above AED 375,000 at 9 percent. Qualifying Free Zone Persons have their own regime: 0 percent on qualifying income and 9 percent on other income. The calculator therefore does not compute tax for a Qualifying Free Zone Person and tells you so. Large multinational groups may also be subject to a Domestic Minimum Top-up Tax, which this tool does not cover.
Small Business Relief
A resident person with revenue of AED 3 million or less in the relevant tax period and in all previous periods may elect Small Business Relief and be treated as having no taxable income for the period. Members of a multinational group and Qualifying Free Zone Persons are excluded. The relief was set for tax periods ending on or before 31 December 2026 and, according to the Ministry of Finance, was extended to tax periods ending on or before 31 December 2029 by Ministerial Decision No. 131 of 2026. Electing the relief has consequences: tax losses of the period cannot be carried forward, and splitting a business artificially to stay under the threshold is treated as an arrangement to obtain a tax advantage. The relief does not remove the duty to file a return.
Deadlines
The tax return and the payment of tax are due no later than nine months after the end of the tax period, unless the Federal Tax Authority sets another date. Registration deadlines depend on the type of person and the date of incorporation.
What the result is, and is not
The tool applies the rates to the taxable income you enter. Getting from accounting profit to taxable income involves adjustments for exempt income, non-deductible expenses, interest limits and related-party transactions. Ask your tax adviser to confirm the figure before filing.