Our FAQ
Answers To Your Questions
UAE Corporate Tax
Corporate Tax applies when a company’s taxable income exceeds AED 375,000. Below that, the rate is 0%, but registration is still required.
• 0% on taxable income up to AED 375,000
• 9% on taxable income above AED 375,000
• 0% for qualifying Free Zone income (under FTA conditions)
Penalties can reach AED 10,000 or more. Delays also increase the risk of tax audits. Our team ensures timely compliance and submissions.
Yes, but only if structured properly. We help you stay compliant while doing business.
Yes. Up to 75% of future taxable income can be offset with eligible carried-forward losses.
Yes, but only if a natural person earns more than AED 1 million per year from a business, freelance, or commercial activity.
A Tax Group allows a parent company and its subsidiaries (95% ownership or more) to file one tax return instead of multiple.
Yes. To maintain 0% Corporate Tax status, audited financial statements are mandatory.
- Late registration or filing
- No audited financial statements
- Poor record keeping
- Mixing personal and business expenses
- Wrong Free Zone structure
We prevent these issues from the beginning.
Businesses with revenue ≤ AED 3 million can choose to pay 0% Corporate Tax and skip detailed calculations until 2026.
Yes. All UAE businesses with related-party or connected-person transactions must comply with TP rules and declare them in their Corporate Tax return.
✔ Transfer Pricing Disclosure Form (with tax return)
✔ Master File Group-level information
✔ Local File UAE entity’s related-party transactions
We help by:
✔ Preparing TP policies and documentation (Master File & Local File)
✔ Ensuring arm’s length pricing for related-party transactions
✔ Filing CT returns and TP forms accurately
✔ Protecting your company from penalties and FTA scrutiny
UAE VAT
- 5% Standard VAT
- 0% VAT for exports, healthcare, education, international transport (conditions apply)
- Some sectors like residential rent and local passenger transport are exempt
Yes. Only businesses in specific Designated Zones have special VAT treatment. Free Zone companies are not VAT-free.
Usually every 3 months (quarterly). Some businesses file monthly depending on size and FTA approval.
- AED 10,000 for late VAT registration
- AED 1,000 for first late return, AED 2,000 if repeated in 24 months
- Interest and penalties on unpaid VAT (up to 4% monthly)
Yes, if the expense is business-related and supported by a valid tax invoice.
No VAT recovery for:
✖ Personal expenses
✖ Entertainment
✖ Passenger cars (non-commercial use)
A valid VAT invoice must include:
✔ TRN (Tax Registration Number)
✔ Company name and address
✔ Invoice date & supply date
✔ VAT rate & amount
✔ Total payable amount
Yes, if:
✔ Total amount ≤ AED 10,000
✔ Customer is not VAT-registered
- Output VAT — VAT you charge customers
- Input VAT — VAT you pay to suppliers
VAT Payable = Output VAT – Input VAT
Real Estate Type | VAT Treatment |
First sale of new residential property | 0% |
Residential rent / resale | Exempt |
Commercial property sale or rent | 5% |
Yes, if annual taxable income exceeds AED 375,000.
FTA can request invoices, contracts, financial records, and tax reports. Missing or incorrect records may lead to penalties.
Because incorrect VAT handling can result in fines, rejected refunds, and audits. We help with:
✔ VAT registration & filing
✔ Tax invoice setup
✔ FTA audit support
✔ VAT refund claims
Usually every 3 months (quarterly). Some businesses file monthly depending on size and FTA approval.
UAE Excise Tax
Product Type | Tax Rate |
Tobacco, vapes, shisha | 100% |
Energy drinks | 100% |
Sweetened & soft drinks | 50% |
Every month via the FTA portal.
✔ Customs declarations
✔ Stock / warehouse reports
✔ Designated zone approvals
✔ Product price lists & barcodes
A warehouse or area approved by the FTA where goods can be stored tax-free until released for consumption.
No. Excise Tax applies everywhere in the UAE, including Free Zones — unless goods stay inside an approved Designated Zone.
- AED 20,000 for failure to register
- 2%–4% monthly penalty on unpaid tax
- Goods may be seized or destroyed during inspection
We assist with:
✔ Excise Tax registration
✔ Filing monthly excise returns
✔ Preparing records for FTA audits
✔ Avoiding fines and compliance risks