Accounting, corporate tax and VAT

Corporate tax

• Every company, including free zone companies, must register for corporate tax.
• Taxable income up to AED 375,000 is taxed at 0%, the rest at 9%.
• Companies with revenue up to AED 3 million can elect small business relief, now extended to tax periods ending by 31 December 2029.
• The return and payment are due within 9 months of the end of the tax period.
• A Qualifying Free Zone Person can pay 0% on qualifying income if it meets the conditions.^1,2,3,4

VAT

Source⁶

Bookkeeping that keeps you ready

• Monthly bookkeeping so VAT returns and the corporate tax return match the ledgers.
• Separate accounts for mainland revenue if a Dubai free zone company uses the mainland operating permit.
• Audited financial statements where the free zone or the 0% regime requires them.^7,3

Timeline and timeframe

Each step in order, with the processing time the authority publishes. Green steps are handled by a government authority.

1. Corporate tax registration20 business days

   Every company registers, including free zone companies and those paying 0%.⁸

2. VAT registration, if required20 business days

   Mandatory above AED 375,000 of taxable supplies; voluntary from AED 187,500.¹⁰

3. Bookkeeping from day oneOngoing

   Records support the corporate tax return and, where required, audited accounts.¹

4. Tax residency certificate10 business days

   Issued by the Federal Tax Authority to use a double taxation agreement.¹¹

Questions