Corporate Tax
Key inquiries regarding the UAE's new Federal Corporate Tax regime.
UAE Corporate Tax applies to all businesses and individuals conducting business activities under a
Commercial License in the UAE. This includes Free Zone businesses (subject to specific criteria) and
foreign entities with a Permanent Establishment in the UAE.
Qualifying Free Zone Persons (QFZP) can benefit from a 0% Corporate Tax rate on "Qualifying Income."
Non-qualifying income will be taxed at the standard 9% rate. Maintaining adequate substance and
complying with transfer pricing rules is mandatory to effectively claim this benefit.
Technically, all taxable persons must register. However, a 0% tax rate applies to taxable income up to
AED 375,000. Income exceeding this threshold is taxed at 9%. Small Business Relief may also be
available for revenue below AED 3 Million.
Tax returns must be filed within 9 months following the end of the relevant Tax Period. For example,
if your financial year ends on 31 December 2024, your return is due by 30 September 2025.
VAT services
Understanding Value Added Tax obligations and filing procedures.
Businesses must register for VAT if their taxable supplies and imports exceed AED 375,000 over the
previous 12 months, or are expected to exceed this threshold in the next 30 days. Voluntary
registration is possible above AED 187,500.
The standard tax period is quarterly. However, the FTA may assign a monthly tax period for certain
businesses. Returns must be filed, and tax paid, by the 28th day following the end of the tax period.
Yes, strict penalties apply. A fixed penalty of AED 1,000 applies for the first late filing
(increasing to AED 2,000 for repetition). Additionally, late payment penalties accrue as a percentage
of the unpaid tax amount, starting from 2% and increasing over time.
Audit & Assurance
Details on statutory audits and internal controls.
Most companies registered in Free Zones (e.g., DMCC, JAFZA) are required to submit audited financial
statements for license renewal. Mainland companies are also increasingly required to maintain audited
accounts under the new Corporate Tax Law and Commercial Companies Law.
Standard requirements include Trial Balance, General Ledger, Bank Statements, Invoices
(Sales/Purchase), Asset Register, and Board Resolutions. Our team provides a comprehensive checklist
at the start of the engagement.
The duration depends on the complexity of your business and the readiness of your records. A standard
SME audit typically takes 1-2 weeks from the receipt of all required documents.