How the UAE freelancer corporate tax calculator is verified

Inputs

Input	Field	Type
Business turnover this calendar year (AED)	`turnoverAnnual`	number
Business profit (taxable income)	`profitAnnual`	number
Elect Small Business Relief	`electSmallBusinessRelief`	boolean

The formula

Each derived value below is computed by the Valem engine from the expression shown, in this order. Nothing else runs — there is no hidden code path.

Derived value	Field	Formula (JSONata)
Subject to Corporate Tax (turnover over AED 1m)	`subjectToCorporateTax`	`turnoverAnnual > $const.naturalPersonTurnoverThreshold`
Small Business Relief available (revenue within AED 3m)	`sbrAvailable`	`turnoverAnnual <= $const.sbrRevenueThreshold`
Taxable income	`taxableIncome`	`(subjectToCorporateTax and $not(electSmallBusinessRelief and sbrAvailable)) ? (profitAnnual > 0 ? profitAnnual : 0) : 0`
Corporate Tax	`corporateTax`	`($t := taxableIncome - $const.zeroRateBand; $t > 0 ? $round($t * $const.ctRate, 2) : 0)`
Net income after Corporate Tax	`netIncome`	`$round(profitAnnual - corporateTax, 2)`

Rates and thresholds

The expressions above read these as $const. They are the figures the annual refresh replaces, so they live as data rather than being written into the formulas — which is what makes a year-on-year change a one-line diff instead of an edit to arithmetic.

Constant	Value
`naturalPersonTurnoverThreshold`	1000000
`zeroRateBand`	375000
`ctRate`	0.09
`sbrRevenueThreshold`	3000000

Test vectors (5)

Every case is executed against this model on each build, by the Java engine and independently by a JavaScript one. A mismatch of a single cent fails the build, so the page cannot ship advertising a figure the model no longer produces.

Case 1 — U1 AED 2.5m turnover with Small Business Relief elected: no Corporate Tax

given `turnoverAnnual`	2500000
given `profitAnnual`	900000
given `electSmallBusinessRelief`	yes
expect `subjectToCorporateTax`	true
expect `sbrAvailable`	true
expect `taxableIncome`	0
expect `corporateTax`	0
expect `netIncome`	900000

Case 2 — U2 the same business without the relief: 9% on AED 525,000

given `turnoverAnnual`	2500000
given `profitAnnual`	900000
given `electSmallBusinessRelief`	no
expect `taxableIncome`	900000
expect `corporateTax`	47250
expect `netIncome`	852750

Case 3 — U3 AED 5m turnover: above the relief threshold, so tax applies

given `turnoverAnnual`	5000000
given `profitAnnual`	1200000
given `electSmallBusinessRelief`	yes
expect `sbrAvailable`	false
expect `corporateTax`	74250
expect `netIncome`	1125750

Case 4 — U4 turnover of exactly AED 1m: not yet subject to Corporate Tax

given `turnoverAnnual`	1000000
given `profitAnnual`	700000
given `electSmallBusinessRelief`	no
expect `subjectToCorporateTax`	false
expect `corporateTax`	0
expect `netIncome`	700000

Case 5 — U5 profit within the AED 375,000 zero-rate band

given `turnoverAnnual`	4000000
given `profitAnnual`	300000
given `electSmallBusinessRelief`	no
expect `corporateTax`	0
expect `netIncome`	300000

Sources

Check it yourself — and reuse it

The whole model as JSON — inputs, outputs, formulas, vectors and sources in one re-runnable document.

This model is published under CC BY 4.0: use it, adapt it, build on it, with attribution. The licence covers the model — the expression of each rule and the arrangement of the catalog. The rates and thresholds are law, and nobody licenses those; the sources above are where they come from.

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