How Corporate tax is calculated?

Corporate Tax is currently imposed annually, with the Corporate Tax liability calculated by the Taxable Person on a self-assessment basis. This means that the calculation and payment of Corporate Tax is done through the filing of a Corporate Tax Return with the Federal Tax Authority by the Taxable Person.

Corporate Tax in UAE will apply at a standard rate of 9% with the following slab rates.

- 0% for taxable income up to AED 375,000

- 9% for taxable income above AED 375,000

The UAE Corporate tax is calculated at 9% of the net profit shown in the company's financial statements after deducting all applicable deductions and excluding the exempted income.

The net profit derived after all deductions will be considered as taxable income. The 9 % corporate tax will be levied only if the taxable value exceeds AED 375,000.

Written By CA Adarsh Janardhanan ACA

Expandx Tax Consultants