How to Calculate Corporate Tax in the UAE

Upon the announcement of federal corporate tax (CT) by the Ministry of Finance in January 2022, the CT becomes applicable on 1st June, 2023 or 1st January, 2024, depending on the company’s financial year (fiscal year). Thus, 2024 is considered the financial year for most companies or businesses in the United Arab Emirates (UAE).
The CT is fixed at 9% for taxable income greater than AED 375,000 and 0% for taxable income less than AED 375,000, while it becomes 15% for large multinationals that meet a specific criteria set with reference to pillar two.