UAE Tax Calculator 2026
Calculate UAE Corporate Tax (0% on first AED 375,000, 9% above) and VAT (5%) on goods and services. The UAE imposes no personal income tax — your salary is yours to keep.
Based on UAE Federal Decree-Law No. 47 of 2022 (Corporate Tax) and No. 8 of 2017 (VAT). For informational purposes only — consult a UAE-licensed tax advisor for official advice.
UAE Corporate Tax Calculator
0% on the first AED 375,000 of taxable profit. 9% on profits above that threshold. Standard regime — Free Zone exceptions not modelled.
Tax Breakdown
UAE VAT Calculator (5%)
Calculate VAT on goods and services at the UAE standard rate of 5%.
UAE VAT Calculator Breakdown
Key Facts About UAE Taxation
The UAE's tax regime is one of the most business-friendly in the world — but the rules changed substantially in 2023 with the introduction of federal Corporate Tax.
0% Personal Income Tax
Salaries, wages, dividends, and most personal income are not taxed at the federal level. The UAE remains one of the most tax-efficient jurisdictions globally for individuals.
AED 375,000 Corporate Threshold
Businesses pay 0% Corporate Tax on the first AED 375,000 of taxable profit. The 9% rate only kicks in on profits above that — protecting small businesses and startups.
Free Zone Incentives
Qualifying Free Zone Persons (QFZPs) can pay 0% on qualifying income, subject to substance requirements. Non-qualifying income is taxed at 9%.
5% VAT Standard Rate
Introduced in January 2018, VAT applies at 5% on most goods and services. Exports, international transport, healthcare, education, and residential real estate are zero-rated or exempt.
Pillar Two Top-up
Multinationals with consolidated revenue ≥ EUR 750m face a 15% Domestic Minimum Top-up Tax under OECD Pillar Two rules, effective for tax periods on or after 1 January 2025.
FTA — Federal Tax Authority
The Federal Tax Authority (FTA) administers all federal taxes. All returns, payments, and registrations happen through the EmaraTax portal.
Track Your UAE Taxes Automatically with Billing+
Create VAT-compliant invoices, track tax-deductible expenses, and generate reports ready for FTA filing — all from one app.
Get Started FreeHow to Pay Tax in the UAE
Whether you're a Free Zone startup, a mainland business, or a freelancer with a trade licence — here's how UAE tax compliance works.
Register With the Federal Tax Authority
Every taxable business must register on the EmaraTax portal for both Corporate Tax and VAT (where thresholds apply). Registration is mandatory if your annual taxable supplies exceed AED 375,000.
Register on EmaraTax →Determine Your Tax Obligations
Mainland businesses: Standard 9% Corporate Tax on profit above AED 375,000. Free Zone businesses: 0% on qualifying income if QFZP requirements met. VAT: 5% standard on most goods/services; quarterly returns. Individuals: No personal income tax.
Maintain Audited Financial Records
All taxable persons must keep accounting records for at least 7 years. Free Zone Persons must maintain audited financial statements to retain their 0% rate. Billing+ can help with invoicing and expense tracking.
Start Tracking for Free →File and Pay on Time
Corporate Tax returns are due within 9 months of the end of the relevant financial year. VAT returns are typically quarterly (sometimes monthly for larger businesses), filed within 28 days of the end of the tax period. Late filing penalties start at AED 1,000.
Stay Compliant With Substance Rules
Free Zone companies, holding companies, and certain regulated activities must meet Economic Substance Requirements — including UAE-based directors, qualifying employees, and adequate physical presence. Non-compliance can lead to loss of 0% Free Zone benefits.
Frequently Asked
Questions
Everything you need to know about UAE Corporate Tax and VAT.
Does the UAE have personal income tax?
No. The UAE imposes 0% personal income tax on individuals at the federal level. Salaries, wages, dividends, capital gains, and most personal earnings are not taxed. Some emirates apply municipal fees on rentals and tourism, but there is no broad-based income tax.
What is the UAE Corporate Tax rate?
0% on the first AED 375,000 of taxable profit, then 9% on profits above that threshold. Multinationals earning over EUR 750m globally are subject to a 15% Domestic Minimum Top-up Tax under OECD Pillar Two, effective for tax periods on or after 1 January 2025.
Who is exempt from Corporate Tax?
Government entities, qualifying public benefit entities, qualifying investment funds, pension/social security funds, and Qualifying Free Zone Persons (on qualifying income only). Individuals running unincorporated businesses with revenue under AED 1 million per year may also qualify for the Small Business Relief regime.
What is a Qualifying Free Zone Person?
A Free Zone company that meets specific conditions including: maintaining adequate substance in the UAE, deriving qualifying income, complying with transfer pricing rules, and not electing for the regular regime. QFZPs pay 0% on qualifying income and 9% on non-qualifying income.
What is the UAE VAT rate?
5% standard rate, in effect since 1 January 2018. Zero-rated supplies include certain exports, international transport, qualifying healthcare, qualifying education, and residential real estate (first supply). Exempt supplies include some financial services and bare land.
When are tax returns due?
Corporate Tax: Returns and payment due within 9 months of the end of the relevant financial year. VAT: Quarterly returns are typical, filed within 28 days of period end. Both are filed via the EmaraTax portal.
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