How to Calculate Corporate Tax Payable in UAE?
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We, BMS Auditing who has 11 years of experience in Taxation in UAE, could give a clear view of this topic for you. UAE Corporate Tax is calculated at 9% of the taxable income exceeding AED 375,000 with all the adjustments like applicable expenditures and deductions. To do that, you have to extract the most precise financial statement of your company. Hence, you may require to hire a tax professional to do it so.
How to Calculate my payable Corporate Tax in UAE?
Check whether your business income falls under the taxable income range, so you will be subjected to the 9% corporate tax rate.
You may note that 9% is charged ONLY if the taxable profit crosses?AED 375000. This means that the Corporate Tax up to AED 375000 is?0%.
for example,
Here is how the Corporate Tax is calculated if you are under the 9% CT:
For instance, if the income is AED 475000, the Corporate Tax is calculated as:
475000-375000*9/100 = AED9000
However, You may also need to?make adjustments to finalize the Taxable Income?for the applicable Tax Period. To know about that in detail, you can refer to this article.