Understanding how corporate tax applies to different business structures in the UAE can sometimes be confusing. Our UAE Corporate Tax Calculator simplifies this process by automatically applying the correct tax rules based on your company type and income sources.
The calculator follows the official UAE corporate tax framework and uses structured logic to determine the correct tax liability for both Mainland and Free Zone companies.
Corporate Tax Calculator for Mainland Companies
All amounts are in AED
| Taxable Income Threshold - Mainland | Rate of Tax | Tax Liability |
|---|---|---|
| Less than or equal to 375,000 | 0% | 0 |
| More than 375,000 | 9% | 0 |
| Total CT Liability | 0 | |
For Mainland companies, corporate tax is calculated according to the standard UAE corporate tax threshold rule.
Businesses benefit from a 0% tax rate on taxable income up to AED 375,000. Once the taxable income exceeds this threshold, a 9% corporate tax rate applies to the amount above AED 375,000.
For example, if a company reports AED 1,500,000 in total taxable income, the tax calculation would work as follows:
The first AED 375,000 is taxed at 0%.
The remaining AED 1,125,000 (1,500,000 – 375,000) becomes taxable at 9%.
This results in a total corporate tax of AED 101,250.
The calculator is built with dynamic logic, allowing the tax threshold and rates to be updated easily in the future if UAE corporate tax regulations change.
Corporate Tax Calculator for Freezone Companies
| Qualifying Income | 0 |
| Taxable Income | 0 |
| Tax Rate | 0% |
| Total CT Liability | 0 |
For Freezone companies, the tax calculation depends on the type of income-generating activity selected in the calculator.
The tax treatment differs depending on whether the company conducts a Qualifying Activity or an Excluded/non-qualifying Activity.
Scenario A: Qualifying Activity (Activity selected is NOT “Others”)
If the selected income-generating activity falls under a qualifying activity, the tax structure works differently from the Mainland regime.
In this scenario, the AED 375,000 threshold does not apply.
Qualifying income may benefit from a 0% tax rate, while non-qualifying income and/or Specific Income is taxed at 9%.
Specific Income : *Income (Profit) from these Not to be included here)
- ^ Branch in Mainland – AED
- ^ Branch outside UAE – AED
- ^ Commercial Property in Freezone (Rent or Sale income from NFZP) – AED
- ^ Residential Property in Freezone (Rent or Sale income from anyone) – AED
- ^ Intellectual Property – AED
These Specific Income are always Taxable @9% whether one is a Qualifying Freezone Person or not.
The calculator ensures these items are automatically included in the taxable income base where applicable.
Scenario B: Non-Qualifying Activity (Activity is “Others”)
If the selected activity is “Others”, the Freezone company is treated under the standard Mainland corporate tax regime.
In this case, the AED 375,000 threshold becomes applicable. The company will receive 0% tax on income up to AED 375,000, and 9% tax will apply only to the portion of income exceeding this threshold.
This ensures that companies conducting non-qualifying activities are taxed consistently with Mainland businesses.
| Assumptions: | |||
| 1. De-Minimis Test has been met | |||
| 2. ‘Others’ include both Excluded Activities and Non-Qualifying Activities not meeting De-Minimis Test | |||
| 3. Income from Intellectual Property is all Qualifying Intellectual Property Income | |||
| 4. Audited Financial Statements have been prepared | |||
How the Corporate Tax Calculator Works
The calculator is designed with conditional logic to ensure accurate tax calculations based on your selections.
- If the entity type is Mainland, the calculator automatically applies the threshold-based tax rule.
- If the entity type is Freezone, the calculator checks the selected income-generating activity:
- If the activity is not “Others”, the Freezone qualifying regime is applied.
- If the activity is “Others”, the Mainland threshold regime is applied.
This structured logic ensures the calculator delivers accurate, compliant, and transparent corporate tax calculations for both Mainland and Freezone businesses.
It also allows flexibility so that the tax framework can be updated easily if there are future changes in UAE corporate tax regulations.
For in-depth and complete calculation of CT Liability, you may contact us
