Corporate Tax Calculator 2024
Corporate Tax Calculator2024
Corporate Tax Calculator
Here’s Your Corporate Tax Calculator For
Calculating Your Corporate Tax
Ready to calculate your possible liability for the upcoming financial year?
Gratuity Calculator UAE 2023
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0 AED
Corporate Tax Liability
Absolute Amount:
Tax Rate (%): 9
Applicable on profits over AED 375000
FAQ’s
Corporate tax will be applicable at a headline rate of 9% on taxable income exceeding AED 375,000. Those corporations earning below this threshold will be subject to a 0% corporate tax rate.
The corporate tax is not implemented in UAE yet, but it is going to be implemented in UAE after June 2023. According to the Federal Tax Authority, a 9% corporate tax rate will be on the net profit exceeding 375,000 AED.
UAE introduced Corporate Tax Law, which states that a 9% corporate tax will be applicable from June 1, 2023. The UAE Ministry of Finance has published Federal Degree-Law No. 47 of 2022 provides the proper framework for corporate tax on business profits in the UAE.
All annual taxable profits that are below AED 375,000 will be subject to zero corporate tax rate. All annual taxable profits above this amount will be subject to a 9% rate including Dubai as well.
Free zones are exempt from the corporate tax rate as there will be a 0% corporate tax rate in UAE free zones. However, companies may still be subject to other taxes such as value-added tax (VAT) and customs duties.
There is currently no personal income tax in the UAE, as there is no individual tax registration or reporting obligation. It is a good advantage for those who are working in UAE as they do not have to pay any personal income tax.
It is no secret that the UAE earns most of its revenue from the oil industry. It uses a no-tax policy to attract skilled workers and global companies to enrich its economy. Hence, Dubai also does not have any personal income tax for the residents to pay.
How To Calculate Corporate Tax In UAE
Corporate tax will be applicable at a headline rate of 9% on taxable income exceeding AED 375,000. Those corporations earning below this threshold will be subject to a 0% corporate tax rate. Let’s have a look at the example:
Corporate tax will be applicable at a headline rate of 9% on taxable income exceeding AED 375,000. Those corporations earning below this threshold will be subject to a 0% corporate tax rate.
The corporate tax will be calculated as follows:
Taxable income of AED 0- AED 375,000 at 0%= AED 0
A portion of taxable income exceeding AED 375,000 (i.e. AED 400,000-AED 375,000= AED 25,000) at 9% = AED 2,250.
The UAE corporate tax liability for the year will be AED 0 + AED 2,250 = AED 2,250.
The final amount of UAE corporate tax payable will be reduced by any foreign taxes incurred on the relevant income.
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Corporate Tax Calculator
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Corporate Tax Calculator
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Disclaimer
The aim of this corporate tax calculator is to guide UAE employees to know the estimated amount of corporate tax. This corporate tax calculator is provided for informational purposes only and should not be considered legal, accounting, or tax advice. You should always consult a qualified accountant or tax advisor before making any financial decisions based on the results of this calculator. By using this calculator, you agree that we will not be liable for any damages or losses that may result from the use of the calculator, or the information provided here.