UAE corporate tax, VAT and compliance for your company

Most problems we see are not about the tax rate. They come from a registration nobody made, a deadline nobody tracked, or a free zone company that assumed 0% applied to all its income. Penalties for late registration and late filing apply whether or not tax was due (deadlines and penalties).

There is no personal income tax in the UAE on salary or dividends. The obligations sit with the company.

Who it's for

• New UAE companies that need corporate tax registration from the start
• Free zone companies checking whether their income qualifies for 0%
• Growing businesses near the VAT registration threshold
• Owners who want filings and books handled properly through the year
• Founders who need a UAE tax residency certificate for a treaty claim

What's included

• Corporate tax registration and the annual return
• VAT registration, returns and the timing of a voluntary registration
• A review of Qualifying Free Zone Person status and which income qualifies
• Small Business Relief: whether it fits, and the election in the return
• Ultimate beneficial owner (UBO) records
• Bookkeeping and coordination with your auditor where the zone requires an audit
• Tax residency certificate applications

Corporate tax

Corporate tax applies from the first financial year starting on or after 1 June 2023. As at October 2026 the rate is 0% on taxable income up to AED 375,000 and 9% above it (u.ae). The Ministry of Finance states that all taxable persons, free zone companies included, must register and obtain a corporate tax registration number (Ministry of Finance). The return and any tax are due nine months after the end of the financial year: the Federal Tax Authority set 30 September 2026 as the deadline for financial years ended 31 December 2025 (Federal Tax Authority; registration and filing).

Smaller companies can elect Small Business Relief, which treats taxable income as nil for a year in which revenue stays within the limit. It is an election in the return, not automatic, and free zone companies claiming the 0% regime cannot use it (who qualifies).

The free zone 0% rate

A free zone company that meets the conditions of a Qualifying Free Zone Person can pay 0% on its qualifying income (Ministry of Finance). It is a set of conditions, not a feature of the licence. Broadly, income from customers outside the UAE and from other free zone businesses can qualify; income from UAE mainland customers and some activities does not, and the company needs real substance in the zone (qualifying income explained). We check your contracts and customers against the rules before the first return, not after.

VAT

As at October 2026 the Federal Tax Authority sets the mandatory VAT registration threshold at AED 375,000 of taxable supplies and imports, and the voluntary threshold at AED 187,500 (Federal Tax Authority). The standard rate is 5%. Registering late brings penalties; registering early adds returns and can affect cash flow, so the timing deserves a decision (thresholds and process).

Records, UBO and substance

Every UAE company must keep proper accounting records, and some free zones require an annual audit (bookkeeping obligations). Companies must also hold and file details of their ultimate beneficial owners (UBO rules). The economic substance regime has changed since corporate tax arrived, so we check what applies to your activity today rather than relying on older guidance (economic substance).

Tax in your home country

Your home country decides when its tax on you stops, and a UAE company or visa does not settle that by itself. If you are leaving the UK, start with the UK tax residency checker; from Ireland, the Irish residency day calculator; from Australia, our Australia guide.

A UAE tax residency certificate can support a treaty claim, but it does not replace your home country's own residence test. We coordinate with your home-country adviser where you have one.

How it works

1. Review

   We assess your obligations across corporate tax, VAT, UBO and records, and whether any free zone income qualifies for 0%.

   Typical timing: Week 1

2. Register

   Corporate tax registration, and VAT registration where it applies or where voluntary registration makes sense.

   Typical timing: Soon after the licence is issued

3. Maintain

   Bookkeeping and records through the year, with deadlines tracked.

   Typical timing: Monthly or quarterly

4. File

   VAT returns on the FTA's schedule, and the annual corporate tax return with any elections.

   Typical timing: Corporate tax return within nine months of the year end

Official sources, as at October 2026: u.ae: corporate tax; Ministry of Finance: corporate tax; Federal Tax Authority: VAT registration; Federal Tax Authority: corporate tax returns. Rules and thresholds change; we confirm the current position for your case before you act. This page is general guidance, not personal tax or legal advice.