The introduction of Corporate Tax in the UAE marks a significant evolution in the nation’s fiscal landscape. Since January 2024, businesses across Dubai and the UAE must navigate new tax obligations alongside existing VAT requirements. Whether you’re operating a mainland company, free zone entity, or just establishing your business presence, understanding and complying with Corporate Tax UAE and VAT Registration UAE regulations is no longer optional—it’s essential.
At EZ Bizz Corporate Services LLC, we provide comprehensive Corporate Tax and VAT services in Dubai and across the UAE, ensuring your business remains fully compliant with Federal Tax Authority (FTA) regulations while optimizing your tax position. Our expert team combines deep knowledge of UAE taxation with practical business advisory to deliver solutions tailored to your specific needs.
Understanding Corporate Tax in UAE
What is Corporate Tax in UAE?
Corporate Tax in UAE is a direct tax imposed on the net income or profit of businesses and commercial activities. Introduced through Federal Decree-Law No. 47 of 2022, it became effective for financial years starting on or after June 1, 2023, representing the UAE’s commitment to international tax standards while maintaining its competitive business environment.
What is the Corporate Tax rate in UAE?
The UAE Corporate Tax rate operates on a two-tier structure:
- 0% on taxable income up to AED 375,000
- 9% on taxable income exceeding AED 375,000
This competitive rate positions the UAE among the most attractive business destinations globally, significantly lower than most international jurisdictions while ensuring compliance with global tax transparency initiatives.
Who Must Register for Corporate Tax in UAE?
Corporate Tax Registration UAE is mandatory for:
- UAE mainland companies and branches of foreign entities
- Free zone businesses (subject to specific conditions)
- Individuals conducting business activities in the UAE
- Non-resident entities with UAE-sourced income
- Entities engaged in natural resource extraction activities
Certain entities remain exempt, including government bodies, government-controlled entities meeting specific criteria, qualifying public benefit organizations, and investment funds meeting regulatory requirements. However, exemption status requires careful evaluation based on your specific circumstances.
Corporate Tax Applicability: Mainland vs Free Zone
Mainland Corporate Tax UAE applies to all commercial entities operating in mainland Dubai and other emirates. These businesses must register, file returns, and maintain comprehensive financial records compliant with international accounting standards.
Free Zone Corporate Tax UAE follows a nuanced approach. Qualifying Free Zone Persons can benefit from 0% Corporate Tax on qualifying income, provided they:
- Do not conduct business with mainland UAE
- Meet all regulatory and substance requirements
- Maintain adequate documentation
- Comply with transfer pricing regulations for related-party transactions
Our Corporate Tax Consultant Dubai team at EZ Bizz specializes in helping free zone businesses understand their obligations and optimize their tax structure within regulatory frameworks.
Corporate Tax Registration Process in UAE
FTA Corporate Tax Registration involves several critical steps:
- Eligibility Assessment: Determining whether your entity must register based on business structure, activities, and revenue thresholds
- Documentation Preparation: Gathering trade licenses, Emirates ID, ownership structures, financial statements, and relevant business documentation
- Online Registration: Completing registration through the FTA portal with accurate business and financial information
- Tax Registration Number (TRN): Receiving your unique Corporate Tax TRN for all future compliance activities
- Ongoing Compliance Setup: Establishing systems for record-keeping, accounting, and regular filing
The registration timeline varies, but businesses must register well before their first tax period ends. Our Corporate Tax Registration UAE services ensure accurate, timely registration with complete documentation support.
Corporate Tax Filing and Compliance Requirements
Corporate Tax Filing UAE demands meticulous attention to deadlines and documentation:
Key Compliance Obligations
Tax Return Filing: Businesses must submit annual Corporate Tax returns within nine months of their financial year-end, declaring taxable income, applicable deductions, and calculating tax liability.
Financial Statement Requirements: Maintaining audited or reviewed financial statements prepared according to internationally accepted accounting standards is mandatory for most businesses.
Transfer Pricing Documentation: Companies engaged in related-party transactions must maintain comprehensive transfer pricing documentation demonstrating arm’s length pricing.
Record Retention: All supporting documents, invoices, contracts, and financial records must be retained for seven years from the end of the relevant tax period.
Tax Payment: Tax liability must be settled within nine months of the financial year-end, coinciding with return filing deadlines.
Corporate Tax Compliance UAE Support
At EZ Bizz Corporate Services LLC, our Corporate Tax Consultant Dubai experts provide end-to-end compliance support, including financial statement preparation, tax computation and optimization, return preparation and filing, liaison with FTA authorities, and advisory on complex tax positions.
Understanding VAT in UAE
What is VAT in UAE?
Value Added Tax (VAT) in the UAE is an indirect consumption tax levied at each stage of the supply chain, ultimately borne by the end consumer. Implemented on January 1, 2018, at a standard rate of 5%, UAE VAT applies to most goods and services with specific exemptions and zero-rated categories.
What is the difference between Corporate Tax and VAT in UAE?
While both are federal taxes administered by the FTA, they serve different purposes:
Corporate Tax is a direct tax on business profits, calculated annually based on net taxable income, and paid by the business entity itself.
VAT is an indirect consumption tax on goods and services, collected at each transaction stage, filed quarterly or monthly depending on turnover, and ultimately paid by end consumers.
Businesses must manage both obligations simultaneously, requiring integrated compliance systems and expert guidance.
VAT Registration Requirements in UAE
What is the VAT threshold UAE?
VAT Registration UAE follows clear threshold requirements:
Mandatory Registration: Businesses with taxable supplies and imports exceeding AED 375,000 in the past 12 months or expected to exceed this threshold in the next 30 days must register.
Voluntary Registration: Businesses with taxable supplies and imports between AED 187,500 and AED 375,000 may opt for voluntary registration, providing benefits like input tax recovery and enhanced business credibility.
VAT Registration Process
Our VAT Consultant UAE team guides you through:
- Threshold Analysis: Evaluating your turnover against registration thresholds
- Business Activity Review: Assessing which supplies are taxable, zero-rated, or exempt
- Documentation Compilation: Preparing trade licenses, financial records, and business details
- FTA Portal Registration: Completing online registration with precision
- TRN Issuance: Securing your VAT Tax Registration Number
- VAT Invoice Implementation: Setting up compliant tax invoice systems
Registration typically takes 20-30 working days once complete documentation is submitted. Early preparation ensures seamless compliance without disrupting business operations.
VAT Filing and Compliance in UAE
VAT Return Filing Dubai Requirements
VAT Filing UAE involves regular return submission:
Filing Frequency:
- Quarterly filing for businesses with annual turnover below AED 150 million
- Monthly filing for businesses exceeding AED 150 million annually
Filing Deadlines: Returns must be submitted within 28 days of the end of each tax period, with simultaneous payment of net VAT liability.
Return Components: Each VAT return details standard-rated supplies, zero-rated supplies, exempt supplies, imports, input tax claimed, and net VAT payable or reclaimable.
VAT Compliance Best Practices
Successful VAT Return Filing Dubai businesses implement:
Proper Invoice Management: Maintaining compliant tax invoices with all mandatory information including supplier and customer details, tax registration numbers, date and invoice number, description of goods/services, and VAT amount clearly stated.
Input Tax Documentation: Retaining valid tax invoices for all expenses where input tax recovery is claimed.
Digital Record Systems: Implementing accounting software that tracks VAT on sales and purchases, generates compliant invoices, and facilitates return preparation.
Regular Reconciliation: Monthly reconciliation between accounting records and VAT returns to identify discrepancies early.
Timely Filing: Submitting returns before deadlines to avoid penalties and maintain good standing with the FTA.
Penalties for Non-Compliance with Corporate Tax and VAT
The FTA imposes substantial penalties for non-compliance:
Corporate Tax Penalties
- Late registration: AED 10,000
- Late filing of tax returns: AED 500 for initial month, AED 1,000 for second month, AED 2,000 for subsequent months
- Late payment: 4% monthly penalty on outstanding amounts
- Tax evasion: Up to AED 50,000 plus full tax amount
VAT Penalties
- Late registration: AED 20,000
- Failure to maintain records: AED 10,000 for first offense, AED 50,000 for repeated violations
- Late VAT return filing: AED 1,000 for first offense, AED 2,000 for subsequent offenses
- Late payment: 2% on first month, 4% on second month, 1% daily thereafter (capped at 300%)
- Tax evasion: Between 50% and 300% of tax evaded
These penalties underscore the importance of engaging professional UAE VAT services and Corporate Tax compliance UAE experts.
Why Choose EZ Bizz Corporate Services LLC for Corporate Tax & VAT Services
Comprehensive Tax Expertise
Our team of Corporate Tax Consultant Dubai and VAT Consultant UAE professionals brings years of specialized experience in UAE taxation, ensuring your business benefits from:
Deep Regulatory Knowledge: We stay current with all FTA updates, clarifications, and regulatory changes affecting your business.
Industry-Specific Solutions: Our experience across various sectors enables tailored advice matching your industry’s specific tax implications.
Proactive Compliance Management: We don’t just react to deadlines—we plan ahead, ensuring your business maintains continuous compliance without last-minute rushes.
End-to-End Service Portfolio
EZ Bizz Corporate Services LLC provides complete Corporate Tax and VAT services in Dubai:
- Initial tax assessment and planning
- Corporate Tax and VAT registration with FTA
- Monthly, quarterly, and annual return preparation and filing
- Tax advisory and optimization strategies
- Audit support and FTA representation
- Tax dispute resolution assistance
- Training for your finance teams
- Ongoing compliance monitoring
Client-Centric Approach
We understand that tax compliance should support—not hinder—your business growth:
Personalized Service: Every client receives dedicated attention with strategies customized to their specific business model.
Transparent Communication: We explain complex tax concepts in clear terms, ensuring you understand your obligations and options.
Technology Integration: Our systems integrate with your accounting platforms for seamless data flow and efficient processing.
Timely Responsiveness: Tax questions don’t wait for convenient times—neither do we. Our team is accessible when you need guidance.
Cost-Effective Solutions: Professional tax services are an investment that pays dividends through compliance confidence, penalty avoidance, and optimized tax positions.
Frequently Asked Questions
Do I need separate registration for Corporate Tax and VAT Registration in the UAE?
Yes, Corporate Tax and VAT are distinct tax systems requiring separate registration with the FTA. Each has its own Tax Registration Number (TRN), filing requirements, and compliance obligations. However, both registrations occur through the FTA portal.
Can a free zone company benefit from 0% Corporate Tax?
Free zone companies can qualify for 0% Corporate Tax on qualifying income if they maintain Qualifying Free Zone Person status, don’t conduct business with mainland UAE (with limited exceptions), meet economic substance requirements, and comply with all regulatory and documentation requirements. Non-qualifying income remains subject to 9% Corporate Tax.
What happens if I miss a VAT filing deadline?
Missing a VAT filing deadline triggers automatic penalties starting at AED 1,000 for the first offense and AED 2,000 for subsequent offenses. Additionally, late payment penalties accrue at 2% for the first month, 4% for the second month, then 1% daily up to a maximum of 300% of the tax due. Repeated violations can result in increased scrutiny and potential audits.
Is VAT charged on services provided to clients outside UAE?
Services provided to non-UAE customers are generally zero-rated for VAT purposes, meaning you charge 0% VAT but can still recover input tax on related expenses. However, specific rules apply depending on the nature of services, place of supply rules, and customer location. Expert VAT Consultant UAE guidance ensures correct treatment.
How long should I retain tax records?
Both Corporate Tax and VAT regulations require businesses to maintain all relevant records, documents, invoices, and accounts for a minimum of seven years from the end of the relevant tax period. Records must be stored in a format accessible for FTA review upon request.
Can I claim VAT refund if my input tax exceeds output tax?
Yes, if your input VAT (on purchases) exceeds output VAT (on sales), you can claim a refund from the FTA. This commonly occurs for businesses making zero-rated supplies, exporters, or businesses in their initial setup phase with significant capital expenditure. Refunds are processed through regular VAT return filing.
When should I start preparing for Corporate Tax registration?
Businesses should begin Corporate Tax preparation well before their first financial year-end under the new regime. Ideally, engage Corporate Tax Registration UAE experts at least 6-9 months before your financial year-end to ensure proper systems, documentation, and registration are in place, avoiding last-minute complications.
Get Expert Corporate Tax & VAT Compliance Support Today
Navigating Corporate Tax UAE and VAT Registration UAE requirements doesn’t have to be overwhelming. With EZ Bizz Corporate Services LLC as your trusted compliance partner, you gain peace of mind knowing that experienced professionals are managing your tax obligations while you focus on growing your business.
Our Corporate Tax Consultant Dubai and VAT Consultant UAE specialists are ready to assess your specific situation, explain your obligations in clear terms, and implement efficient compliance systems tailored to your business needs.
Take Action Now
Don’t risk penalties or compliance gaps. Whether you need Corporate Tax Filing UAE support, VAT Return Filing Dubai assistance, or comprehensive tax advisory services, we’re here to help.
Book a Free Consultation Today
Contact EZ Bizz Corporate Services LLC to discuss your Corporate Tax and VAT requirements with our expert team. Let us handle the complexity while you concentrate on what you do best—running your business.
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