UAE Corporate Tax Calculator + QFZP Eligibility

Estimate your 9% UAE corporate tax. Check whether your free zone company qualifies as a QFZP for the 0% rate. Updated for 2026.

By Alex Thorp, who has set up 40+ UAE businesses · Updated May 2026

Your Company

Company Type

Annual Revenue (AED) Total turnover for the financial year. Taxable Income (AED) Profit after deductible expenses (revenue minus costs). Apply Small Business Relief (revenue ≤ AED 3M, available through Dec 2026)

Your Estimated Tax

AED 0

~$0 USD

Breakdown

Enter your details to see the calculation.

Effective rate: 0%

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UAE Corporate Tax is more nuanced than this calculator

QFZP qualification, transfer pricing, audited financials, FTA registration deadlines — getting this wrong costs you the 0% rate. The LaunchDub.ai guide walks through the full setup decision tree, including exactly which free zones make QFZP easier to maintain.

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UAE Corporate Tax: The 5-Minute Version

Standard rates

0% on taxable income up to AED 375,000
9% on taxable income above AED 375,000
15% for multinationals with global revenue > €750M (Pillar Two)

Free zone QFZP requirements

Adequate substance in UAE
Earns "qualifying income" only
Audited financial statements
Transfer pricing compliance
De minimis: non-qualifying ≤ 5% of revenue or AED 5M

Corporate Tax FAQ

What is the UAE corporate tax rate?

UAE corporate tax is 0% on the first AED 375,000 of taxable income and 9% on income above that threshold. Multinational entities with global revenue exceeding EUR 750 million are subject to the 15% Domestic Minimum Top-up Tax (DMTT) under Pillar Two.

What is a Qualifying Free Zone Person (QFZP)?

A QFZP is a free zone entity that meets specific criteria to qualify for 0% corporate tax on its "qualifying income." Requirements include: maintaining adequate substance in the UAE, deriving qualifying income, complying with transfer pricing, preparing audited financials, and keeping non-qualifying revenue below the de minimis threshold (5% of total revenue or AED 5 million, whichever is lower).

What is the Small Business Relief?

Small Business Relief allows UAE businesses with revenue of AED 3 million or less to elect to be treated as having no taxable income. The relief is available for tax periods ending on or before 31 December 2026, after which the policy will be reviewed.

When did UAE corporate tax start?

UAE corporate tax came into effect for financial years starting on or after 1 June 2023. Companies with calendar-year financial years began their first taxable period on 1 January 2024.

Do I need to register for corporate tax even if I owe nothing?

Yes. All UAE businesses, including free zone entities and those eligible for 0% rate or Small Business Relief, must register for corporate tax with the Federal Tax Authority. Registration is mandatory regardless of profitability.

What counts as 'qualifying income' for QFZP?

Qualifying income includes: trading with non-UAE businesses, distribution of goods from a designated free zone, manufacturing and processing, holding of shares and other securities, ownership and operation of ships, certain reinsurance and fund management services, and headquarter services to related parties. Income from UAE mainland customers (other than designated zone activities) is generally non-qualifying. The full list is in Cabinet Decision No. 100 of 2023.

Can a free zone company use Small Business Relief?

Technically yes, but it's rarely optimal. SBR treats your taxable income as nil if revenue is ≤ AED 3M. However, electing SBR means you forfeit QFZP status for that period — you cannot claim 0% on qualifying income. For most genuinely qualifying free zone businesses, QFZP delivers the same 0% outcome without losing the status, and remains available beyond the 2026 SBR sunset.

When is my first corporate tax return due?

Tax returns are due within 9 months of the end of the relevant tax period. For a calendar-year company (financial year end 31 December), the first return covering 1 Jan – 31 Dec 2024 is due by 30 September 2025. Companies with non-calendar financial years follow their own 9-month deadline. Late filings incur fixed penalties (AED 500–10,000) plus daily penalties.

Worked example: SaaS startup that loses QFZP

TechCorp is a Dubai Internet City company with AED 800,000 in annual revenue:

AED 750,000 from EU and US clients (qualifying income)
AED 50,000 from a UAE mainland client (non-qualifying)
De minimis limit: 5% of total revenue = AED 40,000 (the lower of AED 5M or 5%)
Their non-qualifying income (AED 50,000) exceeds the de minimis

Result: TechCorp loses QFZP status entirely. All income is taxed under standard rules.

0% on first AED 375,000 = AED 0
9% on AED 425,000 (above the threshold) = AED 38,250 in tax

If TechCorp had kept non-qualifying revenue at or below AED 40,000 (e.g. by routing the UAE client through a separate mainland entity), their tax would have been AED 0. The lesson: track non-qualifying income obsessively if you're close to the de minimis threshold — losing QFZP for one bad invoice can cost tens of thousands.

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QFZP qualification is the #1 thing founders get wrong

Choose the wrong free zone or set up substance incorrectly, and you'll lose your 0% rate. The LaunchDub.ai guide breaks down which zones are QFZP-friendly and how to structure your operations from day one.

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⚡ Includes free zone comparison · Lifetime updates · 67% off

Disclaimer: This calculator provides estimates for informational purposes only based on UAE Federal Decree-Law No. 47 of 2022 and FTA Cabinet Decisions current as of publication. It does not constitute tax or legal advice. For binding guidance, consult a UAE tax advisor or the Federal Tax Authority.