UAE corporate tax is 9 percent on taxable profit above AED 375,000 and 0 percent below that threshold, while VAT is 5 percent with registration mandatory once turnover passes AED 375,000. Enter your annual profit and turnover, and the calculator shows your corporate tax and VAT position side by side.
VAT is 5 percent and registration is mandatory above AED 375,000 of taxable turnover (voluntary from AED 187,500). Corporate tax is 9 percent on profit above AED 375,000.
Get your tax handledThis corporate tax calculator shows your UAE VAT and corporate tax position together. VAT is charged at 5 percent, and corporate tax at 9 percent on taxable profit above AED 375,000, with 0 percent below that. Both are administered by the Federal Tax Authority.
How is it calculated?
Corporate tax is 9 percent of taxable profit above AED 375,000, and 0 percent on the first AED 375,000, so a profit of AED 500,000 is taxed only on the AED 125,000 above the threshold.
VAT is 5 percent of taxable supplies. Registration is mandatory once taxable turnover passes AED 375,000 in a rolling twelve months, and voluntary from AED 187,500. Both taxes are set and collected by the Federal Tax Authority (FTA).
Worked example. On profit of AED 500,000, corporate tax is 9 percent of AED 125,000, which is AED 11,250. The first AED 375,000 is taxed at 0 percent.
How to use this tool
The calculator does the arithmetic for you; you only need the figures for your own case. Follow these three steps and read the result as an indicative guide, then send it to us for a fixed, itemised confirmation.
- Enter your annual profit The calculator applies 0 percent to the first AED 375,000 and 9 percent above it.
- Enter your turnover It flags whether you have crossed the AED 375,000 VAT registration threshold.
- Read your position See your estimated corporate tax and whether VAT registration is required.
Frequently asked questions
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How much is corporate tax in the UAE?
It is 9 percent on taxable profit above AED 375,000, and 0 percent on profit up to that threshold.
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When must I register for VAT?
Registration is mandatory once your taxable turnover exceeds AED 375,000 in a rolling twelve months, and voluntary above AED 187,500.
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What is the UAE VAT rate?
The standard VAT rate is 5 percent on most goods and services.
Sources
- Federal Tax Authority, Corporate Tax tax.gov.ae
- Federal Tax Authority, Value Added Tax tax.gov.ae
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