UAE Corporate Tax Calculator 2021
Calculate Tax Liability for Mainland & Free Zone Entities
Introduction
🎯 What
Calculates corporate income tax payable for companies and business entities operating in the UAE.
👥 Who
Corporate entities, SMEs, Multinational companies, and Finance professionals.
💡 Why
To estimate corporate tax liability, comply with UAE Federal Tax Law, and assist in financial planning.
🏢 Financial Details
💵 Tax Summary
Corporate Tax Rates & Slabs 2021
| Category | Taxable Income Plan | Rate |
|---|---|---|
| Standard Slab 1 | 0 - 375,000 AED | 0% |
| Standard Slab 2 | Above 375,000 AED | 9% (on excess) |
| Free Zone | Qualifying Income | 0% |
Allowances & Deductions
- Business operating expenses
- Salaries and wages
- Depreciation on assets
- Approved charitable contributions
- Losses carried forward from previous years
Exemptions
- Small Business Relief: 0% tax if income is below threshold.
- Free Zone Entities: 0% if maintaining adequate substance and qualifying income.
- Government Entities: Certain public sector bodies.
Calculation Examples
Example 1: Small Business
Revenue: AED 300,000 | Expenses: AED 50,000
Taxable Income: AED 250,000
Tariff: 0% (Below 375k)
Tax Payable: AED 0
Example 2: Medium Enterprise
Revenue: AED 1,000,000 | Expenses: AED 200,000
Taxable Income: AED 800,000
Tax = (800,000 - 375,000) × 9%
Tax Payable: AED 38,025
Example 3: Free Zone Entity
Revenue: AED 500,000 | Expenses: AED 100,000
Free Zone Status: YES
Tax Payable: AED 0
Frequently Asked Questions
Q: What is the corporate tax rate in UAE 2021?
A: Generally 0% for taxable income ≤ AED 375,000; 9% on excess above 375,000.
Q: Are Free Zone companies taxable?
A: No, if they meet qualifying conditions under UAE law, they may benefit from 0% rate.
Q: Can business expenses reduce taxable income?
A: Yes, legitimate deductible expenses lower your net taxable income.
Q: Can losses be carried forward?
A: Yes, losses can generally be carried forward to offset future taxable income.
Disclaimer: This UAE Corporate Tax Calculator 2021 is for informational and Google AdSense content use only. Rates, slabs, and rules are based on UAE Federal Tax Authority guidelines. ANTIGRAVITY is not responsible for legal, accounting, or financial decisions.