UAE corporate tax, VAT and free-zone compliance under the 2023 regime.
Mainland and free-zone companies, in Dubai, Abu Dhabi and every emirate. Corporate tax registration and returns, VAT on EmaraTax, WPS payroll, audited accounts for licence renewal and the substance a Qualifying Free Zone Person has to prove every year.
| Tax | Rate | How it works |
|---|---|---|
| Corporate tax | 0% / 9% | 0 percent on taxable income up to AED 375,000, 9 percent above. Qualifying Free Zone Persons pay 0 percent on qualifying income. Small Business Relief for revenue up to AED 3 million through tax periods ending by 31 December 2026. |
| VAT | 5% | Mandatory registration at AED 375,000 of taxable supplies, voluntary at AED 187,500. Returns on EmaraTax by the 28th of the month after the period. E-invoicing phasing in from 2026. |
| Personal income tax | None | No tax on salaries, rental income, dividends or capital gains for individuals. Business income of a natural person above AED 1 million turnover is within corporate tax. |
| Excise tax | 50% / 100% | On carbonated and sweetened drinks, energy drinks, tobacco and vaping products. |
| Domestic minimum top-up tax | 15% | From 2025, for multinational groups with consolidated revenue of EUR 750 million or more. Not relevant to most businesses but relevant to their large customers. |
What you can form, and what each one owes.
Free-zone company (FZCO / FZE)
Formed in one of over 40 free zones. 100 percent foreign ownership, a licence tied to the zone, and potential 0 percent corporate tax as a Qualifying Free Zone Person if substance and income tests are met.
Mainland LLC
Licensed by the emirate's economic department. Full foreign ownership permitted for most activities since 2021. Can trade anywhere in the UAE without a distributor. 9 percent corporate tax above the threshold.
ADGM or DIFC company
Common-law financial free zones in Abu Dhabi and Dubai with their own courts and registrars. Favoured for holding companies, funds and businesses raising international capital.
Branch of a foreign company
Registered under the parent's name. No separate legal personality; the parent carries the liability and the UAE profits are taxed here.
The calendar we run for you.
Every filing, its due date and who it goes to. We track all of them twelve months ahead and remind at 90, 30 and 7 days.
| Filing | Due | To |
|---|---|---|
| Corporate tax registration | Deadline set by licence issue month; AED 10,000 penalty if missed | FTA via EmaraTax |
| Corporate tax return and payment | 9 months after financial year end | FTA |
| VAT return | 28th of the month after the period | FTA |
| WPS salary transfer | Within MOHRE's deadline each month | Central Bank via bank |
| Licence renewal | Annually, most zones require audited accounts | Free zone or DED |
| UBO declaration | At registration and within 15 days of change | Licensing authority |
| Audited financial statements | Per licence terms, typically within 3 to 6 months of year end | Free zone or DED |
Corporate tax, three years in.
Federal corporate tax applied to financial years beginning on or after 1 June 2023, so most companies have now filed at least one return. The FTA's attention has moved to free-zone qualification, transfer pricing between related parties and late registration. Small Business Relief remains available for tax periods ending on or before 31 December 2026, after which businesses under AED 3 million move into the standard regime.
Free zone or mainland.
A free-zone company can qualify for 0 percent on qualifying income, but must maintain adequate substance in the zone, keep audited accounts, and stay under a de minimis of the lower of AED 5 million or 5 percent of revenue for non-qualifying income. Revenue from mainland customers is generally non-qualifying unless it falls within listed activities. A mainland licence pays 9 percent but trades freely. The right answer depends on who the customers are.
Payroll without income tax.
There is no personal income tax and no withholding on salaries, but payroll is still regulated. Mainland employers pay through the Wage Protection System, GPSSA pension applies to UAE and GCC nationals, unemployment insurance is mandatory, and end-of-service gratuity accrues from day one and must be provisioned in the accounts.
What we do here.
Delivered end to end by our own team.
UAE Corporate Tax
Registration, free-zone qualification, transfer pricing files and the annual return under the 2023 regime.
VAT Returns & Compliance
UK and UAE VAT registration, returns and scheme selection, filed digitally and on time.
Bookkeeping
Reconciled monthly on Xero or QuickBooks, so the numbers are real before you look at them.
Audit Support & Audit-Ready Accounts
Statutory and licence audits managed end to end: accounts prepared, files built, auditor questions answered.
Company Formation
UK Ltd, UAE mainland or free zone, US LLC or C-corp: formed correctly, with tax registrations and bank account support.
Payroll
UK PAYE, UAE WPS and US federal and state payroll, run to the day with every filing that goes with it.
Year-End Accounts & Statutory Filings
Annual accounts prepared and filed with the registrar and the tax authority, on time, every year.
International Tax & Transfer Pricing
Structuring across the UK, UAE and US, transfer pricing documentation, permanent establishment and double tax relief.
Company Secretarial & Registered Office
Confirmation statements, licence renewals, registered agents and the statutory registers nobody thinks about until they are wrong.
Does every UAE company need to register for corporate tax?
Yes, including free-zone companies expecting to pay 0 percent and companies with no profit. The registration deadline depends on the month the licence was issued, and missing it costs AED 10,000.
Which accounting standard applies?
IFRS, or IFRS for SMEs where revenue is AED 50 million or less. The Corporate Tax Law requires financial statements prepared under an accepted standard, and audited ones for Qualifying Free Zone Persons and businesses above AED 50 million of revenue.
Can a free-zone company sell to mainland customers?
Commercially, often yes, depending on the zone and the activity. For corporate tax the mainland revenue is usually non-qualifying, so it either fits under the de minimis or the company loses the 0 percent rate for that year. We test it before you sign the contract.
How long does it take to open a UAE bank account?
Two to eight weeks is typical. Banks want a clear business plan, proof of substance, source-of-funds evidence and, for many activities, a physical office lease. We prepare the file so the first application is the last.
Talk to a UAE accountant. Free.
Thirty minutes, no pitch deck. Tell us the entities and the countries, and we will tell you honestly what applies and what it costs.