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corporate_tax_estimate

Estimate UAE corporate tax liability under Federal Decree-Law 47 of 2022. Input income and free zone parameters to apply tax-free band and qualifying activity rates.

Instructions

Estimate UAE corporate tax liability under Federal Decree-Law 47 of 2022.

Tax-free band on the first AED 375,000, then 9% above. QFZP free zone entities can apply 0% to Qualifying Activity income (per Ministerial Decision 229 of 2025).

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
industryNoIndustry category. SaaS triggers a critical warning since it is NOT a Qualifying Activity under MD 229/2025.general
is_free_zoneNoTrue if the entity is in a free zone.
qfzp_qualifying_pctNoPercentage of income that is Qualifying Activity income (0 to 100). Only relevant if is_free_zone.
annual_taxable_income_aedYesAnnual taxable income in AED.

Output Schema

TableJSON Schema
NameRequiredDescriptionDefault

No arguments

Behavior3/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

No annotations are provided, so the description carries the full burden. It explains the tax bands and free zone rules but does not disclose limitations (e.g., simplified calculation, no loss handling) or that the estimate is non-official. The description is adequate but lacks caveats.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness5/5

Is the description appropriately sized, front-loaded, and free of redundancy?

The description is two sentences, concise and front-loaded with the primary purpose. Every sentence adds value without redundancy.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness4/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

Given the presence of an output schema, the description adequately covers the core calculation rules. It could be improved by mentioning that the estimate is not professional advice or does not account for losses, but overall it is sufficient for a simple estimation tool.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema description coverage is 100%, so baseline is 3. The description adds no new parameter-level information beyond what the schema already provides (e.g., industry warning for SaaS, free zone relevance). It does not compensate for any gaps.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description uses a specific verb ('Estimate') and resource ('UAE corporate tax liability under Federal Decree-Law 47 of 2022'). It clearly distinguishes the tool's focus on corporate tax estimation, differentiating it from siblings like qfzp_check (which checks qualifying status) and pro_services_estimate (which estimates service costs).

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines3/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

The description implies usage when estimating tax liability but provides no explicit guidance on when to use this tool versus alternatives like qfzp_check or esr_status. No exclusions or prerequisites are stated.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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