UAE Corporate Tax Liability Estimator Guide 2026 — How Much CT Will You Pay?
Use this guide to estimate your UAE Corporate Tax liability for 2026. Covers the calculation methodology, thresholds, and deductions.
In this guide:
UAE CT Calculation Formula
- Taxable Income = Revenue – Deductible Expenses
- Small Business Relief (if eligible): 0% on ALL taxable income up to AED 3 million revenue
- Standard: 0% on first AED 375,000 of taxable income; 9% on taxable income above AED 375,000
Example UAE CT Calculations
Example 1: Small Consulting Firm
- Annual Revenue: AED 500,000
- Allowable Expenses: AED 200,000 (staff, rent, travel)
- Net Taxable Income: AED 300,000
- UAE CT: AED 0 (below AED 375,000 threshold)
Example 2: Mid-Size Trading Company
- Annual Revenue: AED 2,000,000
- Allowable Expenses: AED 1,400,000
- Net Taxable Income: AED 600,000
- UAE CT: 9% x (AED 600,000 – AED 375,000) = 9% x AED 225,000 = AED 20,250
Example 3: Large Software Company
- Annual Revenue: AED 5,000,000
- Allowable Expenses: AED 2,000,000
- Net Taxable Income: AED 3,000,000
- UAE CT: 9% x (AED 3,000,000 – AED 375,000) = 9% x AED 2,625,000 = AED 236,250
Common Deductible Expenses in UAE CT
- Employee salaries and benefits (fully deductible)
- Office rent (flexi-desk or office)
- Software subscriptions and tools
- Business travel expenses
- Marketing and advertising
- Professional fees (accountant, lawyer)
- Depreciation on business assets
Non-Deductible Expenses (Cannot Reduce UAE CT)
- Fines and penalties
- Personal expenses
- Entertainment expenses above 50% of cost
- Interest on related-party loans above arm-length rates