UAE Corporate Tax Calculator

Revenue versus taxable income — a distinction that changes your bill

The calculator asks for two separate numbers because they are fundamentally different. Revenue is your top-line turnover — every dirham your business received. Taxable income is what remains after deducting allowable business expenses: salaries, rent, cost of goods sold, depreciation on fixed assets, and other genuine operating costs. UAE Corporate Tax is levied on taxable income, not on revenue. A business with AED 2 million in revenue but AED 1.6 million in allowable costs has taxable income of AED 400,000 — well above the 0% band, but the actual tax bill is much smaller than a revenue-based figure would suggest.

Not every expense is deductible. The CT law specifically disallows fines and penalties, 50% of entertainment expenses, distributions to shareholders, personal expenses passed through the business, and interest payments that exceed a defined cap. Getting the deduction calculation right is where professional accounting earns its fee — and where errors are most likely to trigger an FTA audit query.

Small Business Relief is available to businesses with revenue of AED 3 million or less, but it must be actively elected on the CT return — the FTA does not apply it automatically. Businesses that qualify still need to register with the FTA and file a return; they simply tick the SBR election on that return. The relief is not available to members of multinational enterprise groups or to free zone persons. If revenue was AED 2.9 million in one period and AED 3.1 million in the next, SBR is available only for the first period — the election must be reviewed each year.

Corporate Tax registration must be completed before your first return is due. The return and payment are generally due 9 months after your financial year-end. Calculate your exact filing deadline → or let our team handle the full registration and return process.