For companies, free zones & accountants

Everything your business needs on UAE tax

By Hamza Maghrabi ยท Last updated 21 August 2026

Corporate tax, VAT, free zones, e-invoicing and penalties โ€” calculators, checklists and the full rulebook, updated as the law changes.

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Corporate Tax

0% up to AED 375,000, 9% above โ€” Small Business Relief and free zone treatment built in.

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VAT

Registration thresholds, calculating VAT, and getting your return ready to file.

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E-Invoicing & Penalties

The 2026โ€“27 e-invoicing mandate, and what late registration, filing or payment actually costs.

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Disputes & Gov Services

Challenging an FTA penalty, filing complaints, and every official authority link you'll need.

The compliance map

What a UAE business actually has to do

Most compliance anxiety comes from not knowing the shape of the obligations rather than from the obligations themselves. There are fewer than you think, and they run on predictable dates.

Corporate tax, in sequence

Register with the Federal Tax Authority through EmaraTax. Keep accounting records that support a tax return. File within nine months of your financial year end, and pay by the same date. That is the whole cycle, repeated annually.

The rate is 0% on the first AED 375,000 of taxable income and 9% above it. If your revenue is AED 3,000,000 or less you can elect Small Business Relief and be treated as having no taxable income at all, which now runs to tax periods ending on or before 31 December 2029 under Ministerial Decision No. 131 of 2026. Electing it does not excuse you from filing.

Taxable income starts from accounting profit and then adjusts. The adjustments that matter most to smaller businesses are non-deductible items such as fines and penalties, the 50% limit on entertainment expenditure, interest limitation rules, and any related-party transactions that have to be priced at arm's length. A calculator cannot see any of that, which is why its output is an estimate.

VAT, if you cross the threshold

Mandatory registration at AED 375,000 of taxable supplies over twelve months, voluntary from AED 187,500. Returns are usually quarterly and due within 28 days of period end. The VAT page covers zero-rated versus exempt, the reverse charge and what a valid tax invoice needs.

Free zone businesses

A free zone company is not automatically tax free. It has to qualify as a Qualifying Free Zone Person, and qualifying income is taxed at 0% while everything else is taxed at 9% with no AED 375,000 band. The conditions include adequate substance in the zone, audited financial statements, transfer pricing compliance and staying within the de minimis limit for non-qualifying revenue. Run the eligibility check.

The dates worth putting in a calendar

Nine months after your financial year end Corporate tax return and payment. A 31 December 2025 year end means 30 September 2026.
28 days after each VAT period VAT return and payment.
30 October 2026Accredited service provider appointed, if revenue is AED 50,000,000 or more.
31 March 2027Accredited service provider appointed, for everyone else.

Beyond tax

Ultimate beneficial ownership filings, economic substance where it applies, anti-money-laundering registration for designated businesses, and employment obligations under Federal Decree-Law No. 33 of 2021 all sit alongside the tax calendar. The UBO guide and the compliance guide cover those, and the timeline puts everything on one page.

If something has already gone wrong, the penalty calculator shows the cost and the disputes guide explains reconsideration.

Common questions

Does every UAE company have to register for corporate tax?

Yes. Registration is required for taxable persons including free zone companies and businesses that expect to pay nothing because of the 0% band or Small Business Relief. Registration is separate from whether tax is due.

What is the corporate tax filing deadline?

Nine months after the end of the financial year. A financial year ending 31 December 2025 has a return and payment due by 30 September 2026.

Is a free zone company automatically exempt from corporate tax?

No. It must meet the Qualifying Free Zone Person conditions. Qualifying income is then taxed at 0% and non-qualifying income at 9%, with no AED 375,000 zero band available.

Can I claim Small Business Relief and skip filing?

No. The relief is elected on a return, so you must still register and file. The FTA confirmed in August 2026 that businesses electing the relief submit a simplified return by the normal deadline.

Are entertainment expenses deductible?

Only partly. Entertainment expenditure is subject to a 50% deduction limit, and fines and penalties are not deductible at all.

General information about UAE rules, not tax or legal advice. Verify anything that affects a decision with the relevant authority or a licensed adviser. About ยท Contact ยท Terms ยท Privacy