UAE Corporate Tax Calculator 2026: Estimate Your CT Liability

UAE corporate tax calculator guide 2026: how to estimate UAE CT liability, the 9% rate on income above AED 375,000, CT adjustments for disallowed.

Paci Research Team

UAE Tax & Compliance · Paci Finance

3 min read

Verified to 2026 sources

UAE Corporate Tax Calculator 2026: Estimate Your CT Liability — UAE corporate tax calculator 2026: 9% on taxable income above AED 375,000 — with adjustments for disallowed expenses and exemptions

In this guide

Quick answer
UAE CT liability calculation
Common CT adjustments
UAE CT calculation examples
FAQ

0%CT on the first AED 375,000 of taxable income

9%CT on taxable income above AED 375,000

AED 3MSmall Business Relief revenue threshold — 0% CT if elected (until end 2026)

50%Entertainment expenses — only 50% is CT-deductible

TL;DR UAE CT: 0% on first AED 375,000 of taxable income; 9% on income above AED 375,000. Taxable income ≠ accounting profit — add back disallowed expenses (entertainment 50% cap, fines, non-business costs) and subtract exempt income (qualifying dividends, participation exemption gains). Small Business Relief: if revenue ≤ AED 3 million, elect for 0% CT (until tax periods ending 31 Dec 2026).

UAE CT liability calculation

Step	What to do	Example (AED)
1. Start with accounting profit	Net profit per financial statements	1,200,000
2. Add back disallowed expenses	Fines, 50% entertainment, non-business costs	+ 80,000
3. Deduct exempt income	Qualifying dividends, participation gains	-200,000
4. Taxable income	Step 1 + Step 2 − Step 3	1,080,000
5. Less: AED 375,000 exemption	First AED 375,000 at 0%	-375,000
6. CT-taxable income	Taxable income above threshold	705,000
7. CT at 9%	Step 6 × 9%	63,450

Common CT adjustments

Add back (increase taxable income): Client entertainment above 50% of cost; fines and penalties paid to government; owner’s personal expenses run through the business; depreciation on non-business assets; donations to non-approved charities.
Deduct (reduce taxable income): Dividends from a subsidiary where participation exemption applies (5%+ stake held 12+ months); capital gains on qualifying shareholdings (participation exemption); interest expense that does not exceed 30% of EBITDA (subject to general interest deduction limit); tax losses carried forward from prior periods.
Small Business Relief adjustment: If you elect Small Business Relief (revenue ≤ AED 3 million), taxable income is treated as zero — no CT payable. This election is available until tax periods ending 31 December 2026. After 2026, normal 9% applies even for small businesses.

UAE CT calculation examples

Small consulting firm (revenue AED 1.8M, profit AED 400K): Elects Small Business Relief → CT = AED 0. Note: SBR sunset after 31 Dec 2026.
Mid-size trading company (profit AED 800K, no exempt income): CT = (800,000 − 375,000) × 9% = 425,000 × 9% = AED 38,250.
Holding company (profit AED 2M, AED 1.5M from qualifying dividends): Exempt income deducted → Taxable income = 500,000. CT = (500,000 − 375,000) × 9% = AED 11,250.
Company with losses carried forward (profit AED 600K, prior loss AED 250K): Taxable income = 600,000 − 250,000 = 350,000 → below AED 375,000 threshold → CT = AED 0.

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Frequently asked questions

What is the UAE corporate tax rate in 2026?

The UAE corporate tax rate is 0% on the first AED 375,000 of taxable income and 9% on taxable income above AED 375,000 per tax period. This rate has been in effect since the CT law came into force (for most businesses, the first CT period started 1 June 2023). The 9% rate is one of the lowest corporate tax rates globally.

How is UAE corporate tax taxable income calculated?

Start with your net profit per the audited (or reviewed) financial statements. Add back any expenses that are disallowed for CT: fines and penalties, 50% of entertainment costs, non-business expenses. Subtract any exempt income: dividends qualifying for participation exemption, gains on qualifying shareholdings. The result is your taxable income. The first AED 375,000 is at 0%; everything above is at 9%.

Can a UAE company carry forward losses to reduce future CT?

Yes — UAE CT allows losses from one tax period to be carried forward and offset against taxable income in future periods. Loss carry-forward is limited to 75% of taxable income in any single future period (so you cannot eliminate all CT in a profit year using losses). Unused losses can be carried forward indefinitely. Losses cannot be carried back to prior periods.

When is UAE corporate tax due?

The UAE CT return must be filed within 9 months of the end of the tax period. For a company with a 31 December year-end: the CT return for 2024 is due by 30 September 2025. CT must be paid by the return filing deadline. Late filing attracts AED 500/month for the first 12 months, then AED 1,000/month thereafter. Late payment attracts 14% per annum (same rate as VAT late payment under Cabinet Decision 129/2025).

Official UAE Government Sources