Corporate Tax and VAT

Corporate Tax & VAT Services in the UAE

The UAE’s tax framework has evolved significantly in recent years with the introduction of Federal Corporate Tax, alongside the existing Value Added Tax (VAT) regime.

For businesses operating in Dubai and across the UAE, understanding these obligations is essential for maintaining compliance, avoiding unnecessary penalties, and making informed financial decisions.

Samimi Documents Clearing Services provides administrative support for Corporate Tax and VAT procedures, including registration, deregistration, filing coordination, FTA applications, and related compliance requirements.

UAE Corporate Tax

Corporate Tax applies to financial years beginning on or after 1 June 2023 and applies to taxable businesses and persons in accordance with UAE Corporate Tax legislation.

For most taxable businesses, the general Corporate Tax rates are:

• 0% on taxable income up to AED 375,000

• 9% on taxable income exceeding AED 375,000

Corporate Tax can apply to mainland companies, Free Zone entities, foreign entities with a taxable presence in the UAE, and certain natural persons conducting business activities.

For natural persons, Corporate Tax registration is generally required where revenue from business or business activities exceeds AED 1 million in a calendar year; salary, private investment income and real-estate investment income are excluded from that revenue calculation under the applicable rules.

Corporate Tax Registration

Taxable persons subject to Corporate Tax are required to register with the Federal Tax Authority (FTA) and obtain a Corporate Tax Registration Number.

Registration requirements and deadlines depend on the type of taxable person, date of incorporation or establishment, and other circumstances.

Samimi DCS can assist with:

• Corporate Tax registration

• Corporate Tax deregistration

• Updating tax registration information

• EmaraTax applications

• Corporate Tax return filing coordination

• FTA correspondence and administrative follow-up

• Tax record and document preparation support

The FTA confirms that taxable persons must register for Corporate Tax, while certain exempt persons may also be requested to register.

Free Zone Companies & Corporate Tax

Being incorporated in a UAE Free Zone does not automatically mean that all income is taxed at 0%.

A Qualifying Free Zone Person (QFZP) may benefit from a 0% Corporate Tax rate on qualifying income, subject to meeting the applicable requirements and maintaining eligibility.

Businesses operating from Free Zones should therefore assess their activities, income, transactions, economic substance, and other applicable conditions rather than assuming that Free Zone status alone provides a Corporate Tax exemption.

Small Business Relief

Eligible UAE Resident Persons may elect for Small Business Relief where their revenue does not exceed AED 3 million in the relevant tax period and all previous tax periods, subject to the applicable conditions.

Under the current rules, the relief applies to eligible tax periods ending on or before 31 December 2026. Qualifying Free Zone Persons and certain multinational enterprise groups cannot elect for this relief.

Corporate Tax Returns & Compliance

Corporate Tax is generally calculated based on accounting income, subject to adjustments required under UAE Corporate Tax legislation.

Businesses should maintain accurate accounting records and supporting documentation and ensure that applicable returns and payments are completed within the required deadlines.

Proper compliance may involve:

• Maintaining accounting and financial records

• Calculating taxable income

• Identifying deductible and non-deductible expenditure

• Reviewing exempt income

• Maintaining supporting documents

• Considering related-party and transfer-pricing requirements

• Filing Corporate Tax returns

• Paying Corporate Tax due within applicable deadlines

VAT in the UAE

VAT has applied in the UAE since 1 January 2018, with a standard rate of 5% applying to most taxable goods and services.

VAT operates independently from Corporate Tax. Therefore, a business may have obligations under both Corporate Tax and VAT.

Mandatory VAT Registration

For UAE-resident businesses, VAT registration is generally mandatory when taxable supplies and imports:

• Exceed AED 375,000 during the previous 12 months; or

• Are expected to exceed AED 375,000 within the next 30 days.

The FTA requires a person who becomes liable for VAT registration to submit the registration application within the applicable deadline.

Voluntary VAT Registration

Eligible UAE-resident businesses may voluntarily register where taxable supplies, imports or qualifying taxable expenses exceed AED 187,500 during the previous 12 months or are expected to exceed this threshold within the next 30 days.

VAT Returns & Payments

VAT-registered businesses are required to submit VAT returns according to the tax periods assigned by the FTA.

VAT returns generally calculate the difference between:

Output VAT – VAT charged by the business on taxable sales and supplies.

Input VAT – Recoverable VAT incurred on eligible business purchases and expenses.

VAT returns are generally required to be filed within 28 days after the end of the relevant tax period.

Samimi DCS can provide administrative support for:

• VAT registration

• VAT deregistration

• VAT return filing coordination

• VAT registration amendments

• Updating FTA records

• EmaraTax procedures

• Tax registration certificates

• FTA correspondence and follow-up

• Supporting documentation

• VAT-related administrative applications

Why Tax Compliance Matters

Corporate Tax and VAT should form part of the financial and administrative planning of every UAE business.

Failure to register, maintain appropriate records, submit required returns, or meet applicable deadlines can result in administrative penalties.

Businesses should therefore monitor their revenue, taxable supplies, financial year, registration status, and filing deadlines carefully.

Practical Considerations for Businesses

Business owners should:

• Maintain accurate and up-to-date accounting records

• Monitor Corporate Tax and VAT registration thresholds

• Keep invoices and supporting documentation properly organized

• Review Free Zone Corporate Tax eligibility carefully

• Monitor tax return and payment deadlines

• Keep information registered with the FTA up to date

• Assess VAT and Corporate Tax obligations separately

• Seek qualified tax advice where the treatment of a transaction or business structure is complex

Documents Typically Required

The documents required depend on the service and the company's circumstances. Typical documents may include:

• Valid Trade License

• Certificate of Incorporation, where applicable

• Memorandum of Association (MOA)

• Passport copies of owners/shareholders

• Emirates ID copies

• UAE residence visa copies, where applicable

• Corporate Tax Registration Number / Certificate, if already registered

• VAT Registration Certificate / TRN, if already registered

• Business bank account details

• Financial statements or accounting records

• Sales and purchase records

• Tax invoices

• Expense records

• Customs registration details, where applicable

• Previous VAT or Corporate Tax returns, where applicable

• Company contact information

• Authorization documents, where required

• Additional documents requested by the FTA depending on the application

Document requirements and tax treatment vary according to the legal structure, activities, revenue, transactions, and tax status of each business.

Important Notice

Samimi Documents Clearing Services provides administrative, documentation, registration and filing support. Where specialized tax advice, accounting opinions, auditing, or complex tax structuring is required, the matter should be reviewed by an appropriately qualified tax or accounting professional.