Tools · UAE Corporate Tax
Federal Decree-Law 47 of 2022. Standard 9% above AED 375,000. Free Zone 0% / 9% split. Domestic Minimum Top-up Tax (15%) for MNEs in scope of Pillar Two from 1 January 2025.
UAE Corporate Tax under Federal Decree-Law 47 of 2022 applies to juridical persons (mainland and free zone), foreign branches, and natural persons with annual business turnover above AED 1m. The standard rate is 9% on Taxable Income above the AED 375,000 threshold; income below is taxed at 0%.
A Qualifying Free Zone Person pays 0% on Qualifying Income (defined under Cabinet Decision 100 of 2023 and Ministerial Decision 265 of 2023) provided the de minimis condition is met — non-Qualifying Income cannot exceed the lower of 5% of total revenue or AED 5m. Breach is a 5-year disqualification.
From 1 January 2025, the UAE applies a Domestic Minimum Top-up Tax (DMTT) at 15% to UAE constituent entities of MNE Groups with consolidated revenue ≥ EUR 750m in two of the four preceding years. The DMTT credits against the 9% CT — meaning the in-scope entity pays the higher of 9% or 15%. Substance-Based Income Exclusion (SBIE) reduces the GloBE Income base.
This estimator is a directional first-pass. Real CT computation involves: tax-base adjustments (depreciation, interest deductibility under the General Interest Deduction Limitation, related-party transfer pricing, group relief), specific exemptions (participation exemption, foreign permanent establishment exemption), and Pillar Two GloBE adjustments. Speak to our tax team for a real position.
CT registration, returns, QFZP, transfer pricing, voluntary disclosure, reconsideration.
Brief our tax team →The UAE Corporate Tax Estimator is a directional first-pass tool that calculates the estimated corporate tax based on the taxable income, taxpayer status, and qualifying income. It takes into account the standard rate of 9% on taxable income above AED 375,000 and the 0% rate for Qualifying Free Zone Persons. The estimator also considers the Domestic Minimum Top-up Tax (DMTT) of 15% for MNE Groups with consolidated revenue ≥ EUR 750m.
A Qualifying Free Zone Person pays 0% on Qualifying Income, provided the de minimis condition is met, with non-Qualifying Income not exceeding the lower of 5% of total revenue or AED 5m. Breach of this condition results in a 5-year disqualification. The 0% rate applies to income that meets the conditions set out in Cabinet Decision 100 of 2023 and Ministerial Decision 265 of 2023.
To use the UAE Corporate Tax Estimator, simply input the taxable income, taxpayer status, and qualifying income, and the tool will calculate the estimated corporate tax. The tool is designed to provide a directional first-pass estimate and should not be relied upon as the final tax computation. It is recommended to consult with a tax professional for a real position.
The Domestic Minimum Top-up Tax (DMTT) is a tax rate of 15% that applies to UAE constituent entities of MNE Groups with consolidated revenue ≥ EUR 750m in two of the four preceding years. The DMTT credits against the 9% corporate tax, meaning the in-scope entity pays the higher of 9% or 15%. This tax rate is effective from 1 January 2025.
The UAE Corporate Tax Estimator calculates the estimated corporate tax based on the taxable income, taxpayer status, and qualifying income, taking into account the standard rate of 9%, the 0% rate for Qualifying Free Zone Persons, and the Domestic Minimum Top-up Tax (DMTT) of 15% for MNE Groups. The estimator provides a directional first-pass estimate and does not include tax-base adjustments, exemptions, or Pillar Two GloBE adjustments. For a real tax computation, it is recommended to consult with a tax professional.