Calculators

The Calculators page gives quick answers to four everyday UAE questions: the VAT on an amount, the corporate tax on a profit, an employee's end-of-service gratuity and the value of an amount in another currency. The calculators only show a result. Nothing you enter is saved, and nothing is booked in your accounts.

Open the calculators#

Click Calculators in the main menu. Everyone in the company can use them. The page has four cards: VAT (5%), Corporate tax (UAE), End-of-service gratuity and Currency conversion. When you leave the page, the figures are gone.

Work out VAT on an amount#

1. In VAT (5%), type the Amount in AED.
2. Leave the VAT rate at 5, or type another rate.
3. Choose Amount excludes VAT or Amount includes VAT.

The card shows the Net amount, the VAT and the Total including VAT as you type. On an amount without VAT, the VAT is the amount times the rate. On an amount with VAT, the VAT is taken out of the total (5/105 of it at 5%) and the net amount is the rest. The VAT is rounded to the nearest fils. When the rate is not 5%, Use 5% under the buttons puts the standard rate back.

In the example, 1 AED 10,500.00 2 includes VAT, so the VAT is AED 500.00 and the net amount AED 10,000.00.

Estimate corporate tax#

1. In Corporate tax (UAE), type the 3 Taxable income for the tax period. A negative figure is a tax loss.
2. Type the 4 Revenue for the tax period. It is only used to check Small Business Relief.
3. Leave Tax period ends on or before 31 Dec 2029 ticked if that is true. It is ticked when the page opens.
4. Tick Elect Small Business Relief if the business elects it.

The card splits the taxable income into the part At 0% (up to AED 375,000) and the part At 9% (above AED 375,000). 5 Corporate tax due is 9% of the second part, rounded to the nearest fils. In the example, AED 825,000.00 is above the threshold, so AED 74,250.00 is due.

Small Business Relief applies when you elect it, the revenue is AED 3,000,000 or less and the tax period ends on or before 31 December 2029: the taxable income is then treated as nil. If a condition is not met, the card says which one and works out the tax in full. The card also reminds you that the revenue must have been within AED 3,000,000 in every earlier tax period too, which it cannot check for you. With a tax loss, no tax is due, and the card notes that the loss can be carried forward.

Calculate an end-of-service gratuity#

The card works for anyone, also a person who is not in your payroll.

1. In End-of-service gratuity, enter the Joining date and the Last working day.
2. Enter the Monthly basic salary, and if you like the Housing allowance and Other allowances. The allowances are only used for the two-year cap.
3. Enter any Unpaid leave days. They do not count as service.
4. Tick UAE or GCC national in a pension scheme if that applies.
5. Click Calculate.

1 The monthly basic salary is the basis. 2 Calculate works it out, and 3 the result shows the Gratuity, the Service length, the Daily basic wage and the legal basis. After changing an entry, click Calculate again.

Verasol applies Federal Decree-Law 33 of 2021, with the same calculation as its payroll:

• The daily basic wage is the monthly basic salary divided by 30.
• Service runs from the joining date to the last working day, both included, less the unpaid leave days.
• Nothing is due before one full year of service.
• Each of the first five years earns 21 days' basic wage, and each later year 30 days. A part year counts in proportion to the days served in it.
• The gratuity is never more than two years' wage: 24 times the monthly basic salary plus the allowances you entered.
• A UAE or GCC national in a pension scheme gets no gratuity: the pension contributions take its place.

There is no field for the reason for leaving, because it does not change the amount. Unused annual leave is not included: the end-of-service settlement in payroll adds it from the employee's leave history.

In the example, 7 years and 6 months of service on a basic salary of AED 12,000.00 give:

The cap, 24 × AED 19,000.00 (basic salary and allowances) = AED 456,000.00, is not reached.

Convert an amount to another currency#

1. In Currency conversion, type the Amount and choose the Date. The date starts at today.
2. Choose the currencies in From and To. The button with the two arrows between them (Swap currencies) turns the conversion round.

The card shows the Converted amount, rounded to the nearest fils, and the Rate used. Below it is the AED rate of each foreign currency, the rate Verasol books a document of that date at, with its source: the UAE Central Bank's published rate and its date, the fixed 3.6725 AED for the US dollar, or a labelled market rate for a currency the Central Bank does not publish.

1 From is set to the euro and 2 Swap currencies would turn the conversion round. 3 The result: EUR 2,500.00 is AED 10,466.54 at 1 EUR = 4.186617 AED, the UAE Central Bank's rate of 25 September 2026.

Without a rate on the date itself, the latest rate of the two weeks before is used. Without one in those two weeks, the card takes the nearest earlier rate and says so in a note; a document of that date would not take such an old rate by itself. If no rate is held at all, the card says so instead of giving a result.

Related#

• How VAT works in Verasol
• Corporate tax overview
• Small Business Relief
• End of service
• Currency revaluation