Revenue and taxable income answer different questions
Revenue is the income your business generates from its activities. Accounting profit reflects income less recognised expenses. Taxable income is determined under the Corporate Tax rules and may require adjustments to the accounting result. Entering sales into a taxable-income calculator can produce a misleading estimate.
Apply the standard rates to the right base
Under the standard regime, the first AED 375,000 of taxable income is taxed at 0% and the portion above this amount at 9%. A business with AED 1,000,000 of taxable income would therefore have AED 625,000 in the 9% band, producing AED 56,250 before matters outside this simplified calculation.
Know when the basic calculator does not apply
Free zone treatment, Small Business Relief, exempt status, tax losses, credits, group relief and minimum top-up tax can change the analysis. A low or zero basic estimate also does not decide whether registration or filing is required.
Prepare a stronger starting point
Have your period-end accounts, trial balance, supporting schedules and details of material or unusual transactions ready. Work through the adjustments applicable to your business before treating a calculator result as a tax liability.
Try the Corporate Tax calculator