Corporate Tax
For financial years starting on or after 1 June 2023, the UAE applies a federal Corporate Tax: 0% on taxable income up to AED 375,000 and 9% above that. Companies must register with the Federal Tax Authority and file an annual return — free zone companies included.
Free zone companies can apply a 0% rate on qualifying income if they meet the requirements, which include having adequate substance and keeping proper records.
VAT
The UAE applies VAT at a standard rate of 5%. Registration is mandatory when taxable supplies exceed AED 375,000 over the last 12 months or are expected to exceed it in the next 30 days, and voluntary from AED 187,500.
Once registered, returns are usually filed quarterly, and each return has its own filing and payment deadline.
Accounting records
Proper accounting records are not optional: they support your Corporate Tax and VAT returns and must be kept for at least seven years. Without reliable books, it is very hard to apply exemptions or defend your position if the tax authority asks.
Well-kept books are also what lets you see how your business is really doing.
