Computing UAE Corporate Tax starts with your accounting profit as per audited financial statements prepared under IFRS or other accepted standards. From this profit, you make adjustments to align with the tax law. Certain expenses are not deductible, such as administrative fines and penalties, donations made to non-approved charities, general provisions like doubtful debts (unless specific conditions are met), and 50% of entertainment costs. These amounts are added back to profit. On the other hand, some types of income are exempt and must be deducted, including dividends from qualifying shareholdings, foreign permanent establishment income, and gains on qualifying intra-group transfers. After considering these adjustments and any available reliefs (such as Small Business Relief for businesses with revenues not exceeding AED 3 million), you arrive at the Taxable Income. The corporate tax is then applied at 0% on the first AED 375,000 and 9% on the remaining amount. For example, if a business has taxable income of AED 500,000, tax is charged at 0% on the first AED 375,000 and 9% on the balance AED 125,000, resulting in a tax liability of AED 11,250.