What is the taxable income and how is it calculated?

Businesses earning up to AED 375,000 are charged 0% whereas entities earning beyond the standard amount are charged 9%. The taxable income is calculated as:

Taxable income = Total income - adjustable deductions * 9/100

For a business earning AED 800,000 the tax will be calculated as: 800,000 - 375,000 = 425,000 425,000 X 9/100= 38,250

Now, the taxable income will be AED 38,250.