What is the VAT registration threshold in the UAE?
Registration is mandatory once your taxable supplies and imports pass AED 375,000 in the last 12 months, or are expected to in the next 30 days. You must apply within 30 days of crossing it. You may register voluntarily from AED 187,500 of taxable supplies or taxable expenses.
Does every UAE company have to register for Corporate Tax?
Yes. Every UAE company and branch must register for Corporate Tax, even if it makes no profit. The penalty for late registration is AED 10,000.
What is the UAE Corporate Tax rate?
0% on the first AED 375,000 of taxable income and 9% above it. A Qualifying Free Zone Person pays 0% on qualifying income.
When is the UAE Corporate Tax return due?
Within 9 months of the end of the financial year, together with payment. For a 31 December year-end, the return for 2025 is due by 30 September 2026.
Do individuals and freelancers pay UAE Corporate Tax?
Only once their business turnover passes AED 1 million in a calendar year. Salary, personal investment income and property income held in your own name usually do not count towards that.
What is Small Business Relief?
A UAE resident business with revenue under AED 3 million may be able to elect Small Business Relief and be treated as having no taxable income for that period. Check the eligible tax periods and conditions before you elect.
How does a free zone company keep the 0% Corporate Tax rate?
It must earn qualifying income, have adequate substance in the free zone (office, staff and decision-making there), prepare audited financial statements, and keep non-qualifying revenue under the de minimis limit, which is the lower of 5% of revenue or AED 5 million. Breaching it loses the 0% rate for that period and the next four.
Who needs audited financial statements for UAE Corporate Tax?
Free zone companies claiming the 0% rate, and businesses with revenue over AED 50 million. They are filed with the Corporate Tax return.
When are UAE VAT returns due?
By the 28th day after the end of each tax period, whether the period is quarterly or monthly. Payment is due by the same date.
When are UAE Excise Tax returns due?
Monthly, by the 15th day of the following month, with payment.
How is end-of-service gratuity calculated under UAE Labour Law?
Under Federal Decree-Law No. 33 of 2021, nothing is due before one year of continuous service. After that, 21 days of basic salary for each of the first five years and 30 days for each year after, with part years pro rata. A day's wage is basic salary divided by 30, unpaid leave is excluded, and the total cannot exceed two years' wage. The employer must pay within 14 days of the contract ending. It does not apply to DIFC or ADGM employees or UAE nationals under GPSSA.
When must a suspicious transaction be reported in the UAE?
Immediately, on goAML, without delay. A confirmed or partial sanctions match must be frozen within 24 hours of a UN or UAE listing and reported on goAML within 5 business days.
Who is Mazahir Arsiwala?
Mazahir Kaizar Arsiwala is a Chartered Accountant (ICAI membership no. 148416), ACA (ICAEW) and Certified Anti-Money Laundering Specialist, and an FTA-registered Tax Agent for VAT and Excise (TAAN 20052965). He is Managing Partner of Brooks ME and works with Spicer Pegler and Brooks Biz Solutions, from offices in Business Bay, Dubai and Al Nahda, Sharjah, serving 800+ UAE businesses.
How can I get advice on my own situation?
Book a free 15-minute compliance check with Mazahir through Microsoft Bookings, message him on WhatsApp at @mazahirk, or email i@mazahir.pro.
General information as of October 2026, not advice for your business. Try the VAT and Corporate Tax registration check, the gratuity calculator or the deadline list.