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UAE Corporate Tax Calculator
Hey there! If you’re doing business in the UAE, you’ve probably heard about the big change that happened on June 1, 2023 – the introduction of corporate tax. I know, I know – the UAE was famous for being tax-free, but times are changing. The good news? It’s actually pretty straightforward once you get the hang of it. Let’s walk through everything you need to know about calculating your tax, and I’ll show you how to use our handy Corporate Tax Calculator to make your life easier.
Corporate Tax Calculator Tool
Want to figure out your tax bill in seconds? Here’s all you need to do:
- Taxable Income: Input your total taxable income (in AED) for the financial year.
- Corporate Tax Rate: The standard tax rate is 9% for taxable income exceeding AED 375,000.
Turnover is less than or equal to AED 3 Million then Taxable Person is exempt from filling return under small business relief.
Applicable on profits over AED 375,000
Tax Calculation Tool Overview
Think of this calculator as your tax buddy – it’s designed to take the headache out of tax calculations for UAE businesses. No complicated forms or confusing math – just enter your numbers and get your tax estimate instantly. Whether you’re running a small business or managing a larger company, this tool has got your back.
Purpose and How It Works
The calculator keeps it simple: you pay zero tax on your first AED 375,000, then 9% on anything above that. Just plug in your numbers and you’ll know your tax bill in seconds – perfect for busy business owners!
- Taxable Income Entry: Enter your total taxable income (in AED).
- Automatic Calculation: The calculator automatically applies the UAE corporate tax rates (0% up to AED 375,000 and 9% for income above that amount).
- Tax Liability Display: The calculated tax liability is displayed, providing an instant breakdown.
Here’s the breakdown:
| Taxable Income Range | Corporate Tax Rate | Calculation Example |
| Up to AED 375,000 | 0% | No tax on income up to AED 375,000 |
| Exceeding AED 375,000 | 9% | Tax applies at 9% on amount above AED 375,000 |
| Expense Type | Allowable | Disallowed |
| Salaries | Yes | N/A |
| Travel | Yes | N/A |
| Business Entertainment | 50% deductible | Excessive payments to related parties |
| Donations | No | Donations to unrecognized institutions |
Frequently Asked Questions
What is the corporate tax rate in the UAE?
The UAE corporate tax rate is 0% on profits up to AED 375,000 and 9% on profits exceeding this amount.
How do I calculate my corporate tax liability?
Use the Corporate Tax Calculator by entering your taxable income. The tool calculates based on the rate: 0% for income up to AED 375,000 and 9% for income above that.
What is considered taxable income?
Taxable income is derived from accounting profits, adjusted for allowable and disallowed expenses.
What expenses are deductible?
Deductible expenses typically include operational costs like salaries, travel, and accounting fees, though some expenses like excessive interest or entertainment may be partially or fully disallowed.
Are there exemptions to corporate tax?
Yes, foreign branch profits and specific multinational income may be exempt, and credits are available for foreign taxes.
Look, I get it – tax isn’t exactly exciting. But our Corporate Tax Calculator makes it as painless as possible. It’s particularly great for small and medium businesses who want to stay on top of their tax game without getting lost in complicated calculations. Whether you’re a small startup or a growing enterprise, this tool helps you focus on what really matters – running your business. Just punch in your numbers, get your tax estimate, and get back to doing what you do best!
