{"id":32,"date":"2026-09-17T08:12:04","date_gmt":"2026-09-17T08:12:04","guid":{"rendered":"https:\/\/vivosgroup.com\/ae\/services\/accounting-tax\/"},"modified":"2026-10-08T02:30:43","modified_gmt":"2026-10-08T02:30:43","slug":"accounting-tax","status":"publish","type":"page","link":"https:\/\/vivosgroup.com\/ae\/services\/accounting-tax\/","title":{"rendered":"Corporate Tax, VAT and Accounting Services in the UAE"},"content":{"rendered":"\n<div class=\"wp-block-group alignfull vv-section vv-section--grey vv-hero has-global-padding is-layout-constrained wp-container-core-group-is-layout-b7edd97f wp-block-group-is-layout-constrained\">\n<p class=\"vv-eyebrow wp-block-paragraph\">UAE services<\/p>\n\n\n\n<h1 class=\"wp-block-heading\">Corporate Tax, VAT and Accounting Services in the UAE<\/h1>\n\n\n\n<p class=\"vv-answer wp-block-paragraph\">UAE corporate tax is 0% on the first AED 375,000 of taxable income and 9% above, with free zone companies able to keep 0% on qualifying income if they meet the Qualifying Free Zone Person conditions; VAT is 5%, with registration mandatory once taxable supplies and imports exceed AED 375,000 in 12 months, or are expected to in the next 30 days (voluntary from AED 187,500). VIVOS Corporate Services L.L.C. registers and files for both taxes, assesses QFZP status before setup and keeps the books.<\/p>\n\n\n\n<p class=\"vv-lede wp-block-paragraph\">The UAE&#8217;s corporate tax regime changed the calculus for free-zone businesses: a 0% rate is available to a qualifying free-zone person on qualifying income, but it depends on meeting conditions including adequate substance in the zone. Whether your business qualifies is a question we answer before setup, not after the first return is due.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull vv-section vv-facts has-global-padding is-layout-constrained wp-container-core-group-is-layout-2eebee45 wp-block-group-is-layout-constrained\">\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Corporate tax rate<\/td><td>0% on the first AED 375,000 of taxable income, 9% above; free zone 0% on qualifying income if Qualifying Free Zone Person conditions are met<\/td><\/tr><tr><td>VAT<\/td><td>Standard rate 5%; registration mandatory when taxable supplies and imports exceed AED 375,000 over the past 12 months or are expected to within the next 30 days; voluntary from AED 187,500<\/td><\/tr><tr><td>Audit requirement<\/td><td>Required for mainland LLCs under company law, and for corporate tax where revenue exceeds AED 50m or the company is a Qualifying Free Zone Person<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull vv-section vv-prose has-global-padding is-layout-constrained wp-container-core-group-is-layout-2eebee45 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">What&#8217;s included<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Corporate tax registration and return filing<\/li>\n\n\n\n<li>Assessment of qualifying free-zone person status and qualifying income<\/li>\n\n\n\n<li>VAT registration, returns and record-keeping<\/li>\n\n\n\n<li>Economic substance considerations and documentation<\/li>\n\n\n\n<li>Licence renewals and ongoing regulatory filings<\/li>\n\n\n\n<li>Bookkeeping and management accounts<\/li>\n\n\n\n<li>Audited financial statements where the zone or group requires them<\/li>\n\n\n\n<li>Payroll and WPS administration<\/li>\n\n\n<\/ul>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull vv-section vv-prose has-global-padding is-layout-constrained wp-container-core-group-is-layout-2eebee45 wp-block-group-is-layout-constrained\">\n\n<h2 class=\"wp-block-heading\">UAE corporate tax and VAT at a glance (2026)<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Corporate tax and VAT are federal taxes run by the Federal Tax Authority (FTA) on its EmaraTax platform. Beyond the headline rates, these rules decide what a company files and pays.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Item<\/th><th>Detail<\/th><\/tr><\/thead><tbody><tr><td>Who registers for corporate tax<\/td><td>Every resident company, mainland or free zone, whatever its profit<\/td><\/tr><tr><td>Small Business Relief<\/td><td>Revenue of AED 3m or less; tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131 of 2026)<\/td><\/tr><tr><td>Qualifying Free Zone Person tests<\/td><td>Adequate substance, qualifying income, transfer pricing compliance, audited accounts, and non-qualifying revenue no more than 5% of total revenue or AED 5m, whichever is lower<\/td><\/tr><tr><td>Audited accounts for corporate tax<\/td><td>Required for tax periods from 1 January 2025 if revenue exceeds AED 50m, and for every Qualifying Free Zone Person<\/td><\/tr><tr><td>Large multinationals<\/td><td>15% Domestic Minimum Top-up Tax for groups with global revenue of EUR 750m or more, for financial years from 1 January 2025<\/td><\/tr><tr><td>VAT return frequency<\/td><td>Quarterly if annual turnover is below AED 150m; monthly at AED 150m or more<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Which UAE corporate tax position applies to your business?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Most UAE companies pay 0% up to AED 375,000 of taxable income and 9% above, but five other positions change the result. Each has conditions, and some must be claimed.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Position<\/th><th>Rate<\/th><th>Who it applies to<\/th><th>Key conditions<\/th><\/tr><\/thead><tbody><tr><td>Standard rates<\/td><td>0% up to AED 375,000; 9% above<\/td><td>Resident companies and other taxable persons<\/td><td>Automatic; tax losses can offset up to 75% of later taxable income<\/td><\/tr><tr><td>Small Business Relief<\/td><td>Treated as having no taxable income<\/td><td>Resident persons with revenue of AED 3m or less in the period and earlier periods<\/td><td>Elected in each return; not for Qualifying Free Zone Persons<\/td><\/tr><tr><td>Qualifying Free Zone Person<\/td><td>0% on qualifying income; 9% on other taxable income<\/td><td>Free zone companies meeting every condition<\/td><td>No AED 375,000 band; non-qualifying revenue within the de minimis limit counts as qualifying income<\/td><\/tr><tr><td>Domestic Minimum Top-up Tax<\/td><td>Tops the UAE effective rate up to 15%<\/td><td>Multinational groups with revenue of EUR 750m or more<\/td><td>Revenue test met in at least 2 of the 4 preceding financial years<\/td><\/tr><tr><td>Exempt person<\/td><td>Outside corporate tax<\/td><td>Government entities, qualifying public benefit entities, investment and pension funds, and some others<\/td><td>Funds and wholly owned subsidiaries of exempt persons must apply to the FTA<\/td><\/tr><tr><td>Natural person in business<\/td><td>0% up to AED 375,000; 9% above<\/td><td>Individuals doing business in their own name<\/td><td>Only once business turnover exceeds AED 1m in a calendar year; wages and personal investment income do not count<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">How do you register for corporate tax and VAT in the UAE?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Both registrations are made online with the FTA on EmaraTax. Corporate tax registration is due within 3 months of incorporation; VAT registration is due within 30 days of crossing the mandatory threshold.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Create an EmaraTax account and a taxable person profile for the company.<\/li>\n\n<li>Gather the trade licence, memorandum of association, Emirates ID and passport of each owner holding more than 25% and of signatories, and proof of the signatory&#8217;s authority.<\/li>\n\n<li>Submit the corporate tax registration within 3 months of incorporation; the FTA processes complete applications within 20 business days.<\/li>\n\n<li>Track taxable supplies and imports every month. Apply for VAT within 30 days once they pass AED 375,000 over the last 12 months, or are expected to within the next 30 days.<\/li>\n\n<li>File each VAT return and pay within 28 days of the end of the tax period.<\/li>\n\n<li>Prepare the financial statements (audited where required), then file the corporate tax return and pay within 9 months of the year end, electing Small Business Relief there if eligible.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">What records does a UAE company need for corporate tax and VAT?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Keep every record that supports your returns for 7 years after the end of the tax period. Failing to keep required records carries a fine of AED 10,000 per violation.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Financial statements for each tax period, audited where required<\/li>\n\n<li>General ledger, bank statements and reconciliations<\/li>\n\n<li>Sales and purchase invoices, credit notes, contracts and import documents<\/li>\n\n<li>Records showing related-party transactions are priced at arm&#8217;s length<\/li>\n\n<li>For free zone companies: evidence of substance in the zone and a split of qualifying and non-qualifying income<\/li>\n\n<li>Payroll records and Wage Protection System salary files<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">UAE tax rates, thresholds and penalties in 2026<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The figures below are set by federal law and Cabinet decisions. The main change in 2026: since 14 April 2026, late VAT payments attract a single penalty of 14% a year, charged monthly.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Item<\/th><th>Amount \/ deadline<\/th><\/tr><\/thead><tbody><tr><td>Corporate tax<\/td><td>0% up to AED 375,000 of taxable income; 9% above<\/td><\/tr><tr><td>Small Business Relief<\/td><td>Revenue up to AED 3m; tax periods ending on or before 31 December 2029<\/td><\/tr><tr><td>Corporate tax return and payment<\/td><td>Within 9 months of the end of the tax period<\/td><\/tr><tr><td>Late corporate tax return<\/td><td>AED 500 a month for the first 12 months, then AED 1,000 a month<\/td><\/tr><tr><td>Late corporate tax registration<\/td><td>AED 10,000; waived if the first return is filed within 7 months of the end of the first tax period<\/td><\/tr><tr><td>VAT<\/td><td>5%; mandatory registration above AED 375,000, voluntary above AED 187,500<\/td><\/tr><tr><td>VAT return and payment<\/td><td>Within 28 days of the end of each tax period<\/td><\/tr><tr><td>Late VAT return<\/td><td>AED 1,000; AED 2,000 for a repeat within 24 months<\/td><\/tr><tr><td>Late payment (VAT and corporate tax)<\/td><td>14% a year, charged monthly on unpaid tax<\/td><\/tr><tr><td>Late VAT registration<\/td><td>AED 10,000<\/td><\/tr><tr><td>E-invoicing, revenue AED 50m or more<\/td><td>Appoint an Accredited Service Provider by 30 October 2026; go live by 1 January 2027<\/td><\/tr><tr><td>E-invoicing, revenue below AED 50m<\/td><td>Appoint by 31 March 2027; go live by 1 July 2027<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Penalties: Cabinet Decision No. 75 of 2023 (corporate tax) and Cabinet Decision No. 40 of 2017 as amended by Cabinet Decision No. 129 of 2025 (VAT). Losses made while using Small Business Relief cannot be carried forward.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">UAE corporate tax and VAT: worked examples at 2026 rates<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A free zone company can owe AED 0 or AED 236,250 on the same AED 3,000,000 of taxable income, depending on the de minimis test. The second example prices a VAT quarter paid late.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Free zone company, de minimis limit: the lower of 5% \u00d7 20,000,000 = AED 1,000,000 and AED 5,000,000, so AED 1,000,000.<\/li>\n\n<li>Non-qualifying revenue of AED 900,000 is 900,000 \u00f7 20,000,000 = 4.5% of revenue, within the limit. It counts as qualifying income, so corporate tax at 0% = AED 0.<\/li>\n\n<li>If non-qualifying revenue had been AED 1,200,000, or 6%, the company would lose Qualifying Free Zone Person status for 2026 and the next 4 tax periods, 2027 to 2030.<\/li>\n\n<li>It would then pay the standard rates: (3,000,000 \u2212 375,000) \u00d7 9% = 2,625,000 \u00d7 9% = AED 236,250.<\/li>\n\n<li>Mainland company, VAT for July to September 2026: output VAT 2,000,000 \u00d7 5% = AED 100,000; input VAT 800,000 \u00d7 5% = AED 40,000; net VAT 100,000 \u2212 40,000 = AED 60,000, due by 28 October 2026.<\/li>\n\n<li>Paid on 7 December 2026, the VAT is 2 months or part-months late: 60,000 \u00d7 14% \u00f7 12 = AED 700 a month; 700 \u00d7 2 = AED 1,400.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Assumptions. Free zone company: 2026 calendar financial year; revenue AED 20,000,000; taxable income AED 3,000,000; all other Qualifying Free Zone Person conditions met; no mainland branch or property income. Mainland company: calendar-quarter VAT periods; standard-rated sales of AED 2,000,000 and purchases of AED 800,000 before VAT, all input VAT recoverable. Late payment is charged for each month or part of a month from the day after the due date.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">UAE tax calendar for a company with a 31 December year end<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For a 31 December 2026 year end and quarterly VAT, the fixed tax dates run from October 2026 to September 2027. VAT dates assume calendar quarters.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>When<\/th><th>What<\/th><th>Deadline<\/th><th>Authority<\/th><\/tr><\/thead><tbody><tr><td>28 October 2026<\/td><td>VAT return and payment, July to September 2026<\/td><td>28 days after the quarter<\/td><td>FTA, on EmaraTax<\/td><\/tr><tr><td>31 December 2026<\/td><td>Financial year and tax period end<\/td><td>Starts the 9-month filing window<\/td><td>FTA<\/td><\/tr><tr><td>28 January 2027<\/td><td>VAT return and payment, October to December 2026<\/td><td>28 days after the quarter<\/td><td>FTA, on EmaraTax<\/td><\/tr><tr><td>28 April 2027<\/td><td>VAT return and payment, January to March 2027<\/td><td>28 days after the quarter<\/td><td>FTA, on EmaraTax<\/td><\/tr><tr><td>28 July 2027<\/td><td>VAT return and payment, April to June 2027<\/td><td>28 days after the quarter<\/td><td>FTA, on EmaraTax<\/td><\/tr><tr><td>30 September 2027<\/td><td>Corporate tax return and payment for 2026; Small Business Relief elected here if eligible<\/td><td>9 months after the year end<\/td><td>FTA, on EmaraTax<\/td><\/tr><tr><td>After 12 months from incorporation<\/td><td>Tax Residency Certificate available for treaty claims<\/td><td>Covers a chosen 12-month period, current or past<\/td><td>FTA, on EmaraTax<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Common UAE tax mistakes<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The costly errors are about timing and eligibility, not arithmetic.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Assuming Small Business Relief applies automatically: it must be elected in each return, and once revenue passes AED 3m in any period it is lost for later periods.<\/li>\n\n<li>Splitting a business to stay under AED 3m: artificial separation to obtain the relief is treated as a prohibited tax arrangement.<\/li>\n\n<li>Counting only sales for the VAT threshold: the test includes imports and looks 30 days ahead as well as 12 months back.<\/li>\n\n<li>Mixing mainland and free zone income in one ledger: breaching the de minimis limit removes Qualifying Free Zone Person status for that period and the next four.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">UAE tax terms explained<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">These terms appear in EmaraTax and in FTA guidance on corporate tax and VAT.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Term<\/th><th>Meaning<\/th><\/tr><\/thead><tbody><tr><td>EmaraTax<\/td><td>The FTA&#8217;s online platform for registering, filing and paying UAE corporate tax and VAT. Tax Residency Certificates are also requested through it.<\/td><\/tr><tr><td>Qualifying income<\/td><td>Income taxed at 0% for a Qualifying Free Zone Person: income from transactions with free zone persons that are the beneficial recipients, from qualifying activities and from qualifying intellectual property, plus other income if the de minimis test is met.<\/td><\/tr><tr><td>De minimis exclusions<\/td><td>Revenue attributable to a mainland branch and revenue from certain immovable property are left out of the test.<\/td><\/tr><tr><td>Tax loss<\/td><td>A tax period&#8217;s negative taxable income. It can be carried forward against up to 75% of later taxable income, subject to ownership or business continuity.<\/td><\/tr><tr><td>Tax Residency Certificate<\/td><td>An FTA certificate confirming UAE tax residence, used to claim benefits under the UAE&#8217;s double tax agreements. A company can apply once it has been established for 12 months.<\/td><\/tr><tr><td>Accredited Service Provider<\/td><td>A provider that a business must appoint to run its e-invoicing under the UAE e-invoicing system. The Ministry of Finance had approved 32 providers by May 2026, and its published list showed 64 accredited providers on 8 October 2026.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull vv-section vv-faq has-global-padding is-layout-constrained wp-container-core-group-is-layout-2eebee45 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">Frequently asked questions<\/h2>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>What&#8217;s the UAE&#8217;s corporate tax rate?<\/summary>\n<p class=\"wp-block-paragraph\">0% on the first AED 375,000 of taxable income and 9% above that. Free zone companies may keep a 0% rate on qualifying income if they meet the Qualifying Free Zone Person conditions.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Can my free zone company still pay 0% corporate tax?<\/summary>\n<p class=\"wp-block-paragraph\">Possibly, if it qualifies as a Qualifying Free Zone Person on its qualifying income \u2014 which depends on factors including adequate substance in the zone and the nature of the income. We assess this before setup rather than after the first return is due.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Is VAT registration mandatory in the UAE?<\/summary>\n<p class=\"wp-block-paragraph\">It&#8217;s mandatory once taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to within the next 30 days. Voluntary registration is available from AED 187,500 of supplies, imports or taxable expenses.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Has Small Business Relief been extended beyond 2026?<\/summary>\n<p class=\"wp-block-paragraph\">Yes. Ministerial Decision No. 131 of 2026, announced by the Ministry of Finance in August 2026, extends Small Business Relief to tax periods ending on or before 31 December 2029. The AED 3m revenue threshold is unchanged. The relief still has to be elected in each corporate tax return.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Are dividends taxed in the UAE?<\/summary>\n<p class=\"wp-block-paragraph\">Dividends from UAE resident companies are exempt from corporate tax. Foreign dividends and share gains can be exempt under the participation exemption: broadly, a 5% or greater holding (or an acquisition cost of at least AED 4m), held for 12 months, in a company taxed at 9% or more.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>When does e-invoicing become mandatory in the UAE?<\/summary>\n<p class=\"wp-block-paragraph\">From 1 January 2027 for businesses with revenue of AED 50m or more, and from 1 July 2027 for the rest. Voluntary adoption has been allowed since 1 July 2026.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Does my company need audited accounts for corporate tax?<\/summary>\n<p class=\"wp-block-paragraph\">Only in some cases. For tax periods starting on or after 1 January 2025, audited financial statements are required if revenue exceeds AED 50m, or if the company is a Qualifying Free Zone Person, whatever its size.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Do freelancers and sole traders pay UAE corporate tax?<\/summary>\n<p class=\"wp-block-paragraph\">Only if business turnover exceeds AED 1m in a calendar year (Cabinet Decision No. 49 of 2023). Wages, personal investment income and real estate investment income do not count. Above the threshold, business income is taxed at 0% up to AED 375,000 and 9% above.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Can a UAE company carry forward tax losses?<\/summary>\n<p class=\"wp-block-paragraph\">Yes. A tax loss can be set against up to 75% of taxable income in later periods. It stays usable while the same owners keep at least 50% of the company or, if ownership changes, while the company carries on the same or a similar business.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Does a Qualifying Free Zone Person get the AED 375,000 0% band?<\/summary>\n<p class=\"wp-block-paragraph\">No. A Qualifying Free Zone Person is not entitled to 0% on its first AED 375,000 of taxable income. It pays 0% on qualifying income and 9% on other taxable income, and cannot elect Small Business Relief.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>How do I get a UAE Tax Residency Certificate?<\/summary>\n<p class=\"wp-block-paragraph\">Apply to the FTA through EmaraTax. A company must have existed for at least 12 months, and the certificate covers a 12-month period you choose, current or past. The FTA reviews a complete application within 10 business days.<\/p>\n<\/details>\n\n\n<\/div>\n\n\n\n\n\n<div class=\"wp-block-group alignfull vv-section vv-prose vv-sources has-global-padding is-layout-constrained wp-container-core-group-is-layout-2eebee45 wp-block-group-is-layout-constrained\">\n\n<h2 class=\"wp-block-heading\">Sources<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Figures on this page were checked against these official sources on 6 October 2026. Rates, fees and deadlines change, so confirm the current position with the authority before acting.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Ministry of Finance, <a href=\"https:\/\/mof.gov.ae\/en\/news\/ministry-of-finance-confirms-applicable-taxable-income-threshold-for-corporate-tax-abu-dhabi-uae\/\" rel=\"noopener\" target=\"_blank\">Ministry of Finance confirms applicable taxable income threshold for Corporate Tax<\/a><\/li>\n\n<li>Ministry of Finance, <a href=\"https:\/\/mof.gov.ae\/en\/news\/ministry-of-finance-announces-extension-of-small-business-relief-for-corporate-tax-purposes-until-31-december-2029\/\" rel=\"noopener\" target=\"_blank\">Extension of Small Business Relief until 31 December 2029<\/a><\/li>\n\n<li>Ministry of Finance, <a href=\"https:\/\/mof.gov.ae\/wp-content\/uploads\/2025\/04\/Ministerial-Decision-No.-84-of-2025-on-Audited-Financial-Statements.pdf\" rel=\"noopener\" target=\"_blank\">Ministerial Decision No. 84 of 2025 on Audited Financial Statements<\/a><\/li>\n\n<li>Federal Tax Authority, <a href=\"https:\/\/tax.gov.ae\/Datafolder\/Files\/Legislation\/2025\/Cabinet%20Decision%20No.%2040%20of%202017%20and%20its%20amendments%20-%20publishing%2011%202025.pdf\" rel=\"noopener\" target=\"_blank\">Cabinet Decision No. 40 of 2017 and its amendments (incl. Cabinet Decision No. 129 of 2025)<\/a><\/li>\n\n<li>Ministry of Finance, <a href=\"https:\/\/mof.gov.ae\/wp-content\/uploads\/2024\/03\/Cabinet-Decision-No.-75-of-2023-and-its-amendments-on-the-Administrative-Penalties-for-Violations-Related-to-the-Application-of-Federal-Decree-Law-No.-47-of-2022.pdf\" rel=\"noopener\" target=\"_blank\">Cabinet Decision No. 75 of 2023 and its amendments (corporate tax penalties)<\/a><\/li>\n\n<li>UAE Government portal (u.ae), <a href=\"https:\/\/u.ae\/en\/information-and-services\/finance-and-investment\/taxation\/vat\/filing-a-tax-return-for-vat\" rel=\"noopener\" target=\"_blank\">File VAT returns<\/a><\/li>\n\n<li>Ministry of Finance, <a href=\"https:\/\/mof.gov.ae\/en\/news\/ministry-of-finance-announces-targeted-amendments-to-einvoicing-system-decisions\/\" rel=\"noopener\" target=\"_blank\">Targeted amendments to eInvoicing system decisions<\/a><\/li>\n\n<li>Federal Tax Authority, <a href=\"https:\/\/tax.gov.ae\/Datafolder\/Files\/Guides\/CT\/Free%20Zone%20Persons%20-%2020%2005%202024%20final%20for%20GCD.pdf\" rel=\"noopener\" target=\"_blank\">Free Zone Persons Corporate Tax Guide<\/a><\/li>\n\n<li>Ministry of Finance, <a href=\"https:\/\/mof.gov.ae\/wp-content\/uploads\/2022\/12\/Federal-Decree-Law-No.-47-of-2022-EN.pdf\" rel=\"noopener\" target=\"_blank\">Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses<\/a><\/li>\n\n<li>Ministry of Finance, <a href=\"https:\/\/mof.gov.ae\/wp-content\/uploads\/2023\/05\/Cabinet-Decision-No.-49-of-2023.pdf\" rel=\"noopener\" target=\"_blank\">Cabinet Decision No. 49 of 2023 on business activities of natural persons<\/a><\/li>\n\n<li>Ministry of Finance, <a href=\"https:\/\/mof.gov.ae\/ministry-of-finance-announces-issuance-of-a-cabinet-decision-on-the-introduction-of-top-up-tax-for-multinational-enterprises\" rel=\"noopener\" target=\"_blank\">Cabinet Decision on the introduction of Top-up Tax for multinational enterprises<\/a><\/li>\n\n<li>Federal Tax Authority, <a href=\"https:\/\/tax.gov.ae\/en\/services\/issuance.of.tax.certificates.aspx\" rel=\"noopener\" target=\"_blank\">Issuance of Tax Certificates for Tax Residency<\/a><\/li>\n<\/ol>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull vv-section vv-prose vv-related has-global-padding is-layout-constrained wp-container-core-group-is-layout-2eebee45 wp-block-group-is-layout-constrained\">\n\n<h2 class=\"wp-block-heading\">Related services and guides<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/vivosgroup.com\/ae\/insights\/uae-vat-registration-thresholds-deadlines\/\">VAT registration: thresholds and the 30-day test<\/a> \u2014 the AED 10,000 late-registration penalty<\/li>\n\n\n\n<li><a href=\"https:\/\/vivosgroup.com\/ae\/insights\/uae-free-zone-vs-mainland-2026\/\">Free zone vs mainland tax mechanics<\/a> \u2014 QFZP and the de minimis cliff<\/li>\n\n\n\n<li><a href=\"https:\/\/vivosgroup.com\/ae\/services\/corporate-secretarial\/\">Compliance and economic substance<\/a> \u2014 UBO, ESR history and the free zone substance test<\/li>\n\n\n\n<li><a href=\"https:\/\/vivosgroup.com\/blog\/insights\/singapore-malaysia-hong-kong-uae-corporate-tax-compared\/\">Corporate tax compared across four jurisdictions<\/a> \u2014 how 9% compares<\/li>\n\n\n\n<li><a href=\"https:\/\/vivosgroup.com\/ae\/insights\/uae-company-audit-requirements\/\">UAE audit requirements for companies<\/a> \u2014 corporate tax, free zone and company law rules<\/li>\n\n\n\n<li><a href=\"https:\/\/vivosgroup.com\/services\/accounting-tax\/\">Accounting and tax at group level<\/a> \u2014 reporting to a Singapore parent<\/li>\n<\/ul>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull vv-section vv-section--navy vv-section--tight has-global-padding is-layout-constrained wp-container-core-group-is-layout-2eebee45 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">Talk to us about UAE tax and accounting<\/h2>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button vv-btn-gold\"><a class=\"wp-block-button__link wp-element-button\" href=\"\/ae\/contact\/\">Get in touch<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What\u2019s the UAE\u2019s corporate tax rate?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"0% on the first AED 375,000 of taxable income and 9% above that. Free zone companies may keep a 0% rate on qualifying income if they meet the Qualifying Free Zone Person conditions.\"}},{\"@type\":\"Question\",\"name\":\"Can my free zone company still pay 0% corporate tax?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Possibly, if it qualifies as a Qualifying Free Zone Person on its qualifying income \u2014 which depends on factors including adequate substance in the zone and the nature of the income. We assess this before setup rather than after the first return is due.\"}},{\"@type\":\"Question\",\"name\":\"Is VAT registration mandatory in the UAE?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It\u2019s mandatory once taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to within the next 30 days. Voluntary registration is available from AED 187,500 of supplies, imports or taxable expenses.\"}},{\"@type\":\"Question\",\"name\":\"Has Small Business Relief been extended beyond 2026?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes. Ministerial Decision No. 131 of 2026, announced by the Ministry of Finance in August 2026, extends Small Business Relief to tax periods ending on or before 31 December 2029. The AED 3m revenue threshold is unchanged. The relief still has to be elected in each corporate tax return.\"}},{\"@type\":\"Question\",\"name\":\"Are dividends taxed in the UAE?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Dividends from UAE resident companies are exempt from corporate tax. Foreign dividends and share gains can be exempt under the participation exemption: broadly, a 5% or greater holding (or an acquisition cost of at least AED 4m), held for 12 months, in a company taxed at 9% or more.\"}},{\"@type\":\"Question\",\"name\":\"When does e-invoicing become mandatory in the UAE?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"From 1 January 2027 for businesses with revenue of AED 50m or more, and from 1 July 2027 for the rest. Voluntary adoption has been allowed since 1 July 2026.\"}},{\"@type\":\"Question\",\"name\":\"Does my company need audited accounts for corporate tax?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Only in some cases. For tax periods starting on or after 1 January 2025, audited financial statements are required if revenue exceeds AED 50m, or if the company is a Qualifying Free Zone Person, whatever its size.\"}},{\"@type\":\"Question\",\"name\":\"Do freelancers and sole traders pay UAE corporate tax?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Only if business turnover exceeds AED 1m in a calendar year (Cabinet Decision No. 49 of 2023). Wages, personal investment income and real estate investment income do not count. Above the threshold, business income is taxed at 0% up to AED 375,000 and 9% above.\"}},{\"@type\":\"Question\",\"name\":\"Can a UAE company carry forward tax losses?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes. A tax loss can be set against up to 75% of taxable income in later periods. It stays usable while the same owners keep at least 50% of the company or, if ownership changes, while the company carries on the same or a similar business.\"}},{\"@type\":\"Question\",\"name\":\"Does a Qualifying Free Zone Person get the AED 375,000 0% band?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. A Qualifying Free Zone Person is not entitled to 0% on its first AED 375,000 of taxable income. It pays 0% on qualifying income and 9% on other taxable income, and cannot elect Small Business Relief.\"}},{\"@type\":\"Question\",\"name\":\"How do I get a UAE Tax Residency Certificate?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Apply to the FTA through EmaraTax. A company must have existed for at least 12 months, and the certificate covers a 12-month period you choose, current or past. The FTA reviews a complete application within 10 business days.\"}}]}<\/script>\n\n\n\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"Service\",\"serviceType\":\"Accounting, Bookkeeping and Tax Compliance\",\"name\":\"Accounting, Bookkeeping and Tax Compliance\",\"url\":\"https:\/\/vivosgroup.com\/ae\/services\/accounting-tax\/\",\"provider\":{\"@type\":\"Organization\",\"name\":\"VIVOS Corporate Services L.L.C.\",\"url\":\"https:\/\/vivosgroup.com\/ae\/\",\"identifier\":\"Commercial Licence No. 1638200\",\"sameAs\":[\"https:\/\/vivosgroup.com\/\"]},\"areaServed\":{\"@type\":\"Country\",\"name\":\"United Arab Emirates\"}}<\/script>\n","protected":false},"excerpt":{"rendered":"<p>UAE services Corporate Tax, VAT and Accounting Services in the UAE UAE corporate tax is 0% on the first AED 375,000 of taxable income and 9% above, with free zone companies able to keep 0% on qualifying income if they meet the Qualifying Free Zone Person conditions; VAT is 5%, with registration mandatory once taxable [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":16,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-32","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/vivosgroup.com\/ae\/wp-json\/wp\/v2\/pages\/32","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vivosgroup.com\/ae\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/vivosgroup.com\/ae\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/vivosgroup.com\/ae\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vivosgroup.com\/ae\/wp-json\/wp\/v2\/comments?post=32"}],"version-history":[{"count":7,"href":"https:\/\/vivosgroup.com\/ae\/wp-json\/wp\/v2\/pages\/32\/revisions"}],"predecessor-version":[{"id":233,"href":"https:\/\/vivosgroup.com\/ae\/wp-json\/wp\/v2\/pages\/32\/revisions\/233"}],"up":[{"embeddable":true,"href":"https:\/\/vivosgroup.com\/ae\/wp-json\/wp\/v2\/pages\/16"}],"wp:attachment":[{"href":"https:\/\/vivosgroup.com\/ae\/wp-json\/wp\/v2\/media?parent=32"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}