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When considering tax rate thresholds, how is UAE corporate tax calculated?
April 20, 2023

The current threshold of 375,000 AED means that the taxable profits from £1 to of 374,999 AED are taxed at 0%. Any profits above 375,000 AED will be taxed at 9%. 

For example, if a company has a taxable profit of 400,000 AED, the calculation will be (375,000 AED x 0%) + (25,000 AED x 9%) giving a tax bill for the period of 2,250 AED.

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Information provided on the site is merely guidance that may change in line with UAE law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. Theta7 is a trading name for THETA 7 Accounting & Bookkeeping L.L.C, an authorised & licensed accounting firm under the Ministry of Economy and the Federal Tax Authority of the United Arab Emirates.
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