A UAE company pays Corporate Tax: 0% on taxable profit up to AED 375,000 and 9% on the amount above that threshold. VAT is 5%: registration is mandatory when taxable turnover exceeds AED 375,000 over 12 months, and voluntary from AED 187,500. Every company registers for Corporate Tax, even when the tax due is zero.
What taxes does a UAE company pay
A company has two main taxes: Corporate Tax (CT) on profit and value added tax (VAT). There is no personal income tax in the UAE. Both taxes are administered by the Federal Tax Authority (FTA); registrations, returns and payments go through the EmaraTax portal. The parameters below are as of October 2026, checked against tax.gov.ae and u.ae on 17.10.2026.
| Parameter | Corporate Tax | VAT |
|---|---|---|
| Rate | 0% up to AED 375,000 of taxable profit, 9% above | 5% |
| Who registers | every resident company, including free zone companies; an individual with a business, when revenue exceeds AED 1,000,000 a year | mandatory when taxable supplies and imports exceed AED 375,000 over 12 months; voluntary above AED 187,500 |
| Registration deadline | 3 months from the date of incorporation (for companies incorporated on or after 1 March 2024) | 30 days from the date the obligation arises |
| Return | once a year, no later than 9 months after the end of the tax period | usually once a quarter, within 28 days after the end of the period |
| Registration fee | free (according to the FTA as of 17.10.2026) | free (according to the FTA as of 17.10.2026) |
| FTA review | up to 20 working days | up to 20 working days |
UAE Corporate Tax
Rates
According to the UAE Ministry of Finance (u.ae, updated 30.03.2026): 0% on taxable income up to AED 375,000 and 9% on income above AED 375,000. A separate regime applies to large multinational groups that fall under the OECD Pillar Two rules. The tax is charged on profit, not revenue: the base is accounting net profit with the adjustments listed in the law. The regime applies from the first financial year starting on or after 1 June 2023.
Example: with taxable profit of AED 500,000, the tax is 9% of AED 125,000, i.e. AED 11,250.
Small Business Relief
A UAE resident (a company or an individual) with revenue of no more than AED 3,000,000 in the current and all previous tax periods can elect for Small Business Relief. The person is then treated as having no taxable income for the period, but other reliefs and deductions do not apply in that period. The election is made separately for each period. The relief is not available to Qualifying Free Zone Persons or to members of multinational groups with consolidated revenue above AED 3.15 billion (FTA).
According to WAM on 07.08.2026, the UAE Ministry of Finance extended the relief to tax periods ending no later than 31.12.2029 (Ministerial Decision No. 131 of 2026); the FTA's Small Business Relief page does not yet reflect the extension, so we check the text of the decision before filing a return. CT registration, the return and record-keeping remain mandatory for those who apply the relief.
Registration deadlines
- A company, including a free zone company, incorporated on or after 1 March 2024: within 3 months of the date of incorporation.
- A foreign company effectively managed from the UAE: within 3 months after the end of its financial year.
- An individual with a business in the UAE whose business revenue exceeded AED 1,000,000 in a calendar year: by 31 March of the following year. Salary, personal investments and income from real estate investment are not included in this amount.
- Companies incorporated before 1 March 2024 registered in 2024 on a schedule tied to the month their licence was issued.
The basis is FTA Decision No. 3 of 2024. CT registration is required even if the company is already registered for VAT.
Return and payment
The return is filed and the tax paid no later than 9 months after the end of the tax period. For the financial year ended 31.12.2025, the deadline was 30.09.2026 (FTA, 26.09.2026). This also applies to those who use Small Business Relief. The company must keep the records that support the figures in the return: the FTA uses them to verify revenue, taxable income and eligibility for Small Business Relief, and failure to keep records carries administrative penalties.
Late penalties
For late Corporate Tax registration, the FTA charges a penalty of AED 10,000. It is waived if the first return is filed within 7 months after the end of the first tax period; in that case, a penalty already paid is refunded to the tax account (FTA, service card updated 19.08.2026). The amounts of penalties for late returns and payments are set by Cabinet decisions; we check the current amount on tax.gov.ae on the date of the work.
Free zone companies
Free zone companies also pay Corporate Tax and register in the usual way. According to u.ae, the regime keeps tax incentives for free zone companies that meet all regulatory requirements and do not do business on the mainland. Which income is taxed at 0% and which at 9% depends on the conditions of Qualifying Free Zone Person status; we work this out before the first return.
UAE VAT: rate, thresholds, returns
The VAT rate in the UAE is 5% (u.ae, 30.03.2026). Registration conditions according to the FTA service card (updated 19.08.2026):
- VAT registration is mandatory if taxable supplies and imports over the last 12 months exceeded AED 375,000 or will exceed this threshold in the next 30 days;
- voluntary registration is possible if taxable supplies, imports or taxable expenses over 12 months (or expected in the next 30 days) exceed AED 187,500;
- a non-resident making taxable supplies in the UAE registers regardless of the amount, unless another person in the UAE pays the VAT on its behalf;
- the application is filed within 30 days from the date the obligation arises; for late registration the FTA charges a penalty under the tax legislation;
- all branches of one company register under one TRN and file one return.
A VAT return is usually filed within 28 days after the end of the tax period. The standard period is a quarter for annual turnover below AED 150 million and a month for turnover from AED 150 million; the FTA may assign a different period (u.ae, 30.03.2026). Once the application is approved, the TRN and the taxpayer certificate appear in the EmaraTax account.
What you need to register in EmaraTax
First, an EmaraTax account and a taxpayer profile are created, then the CT or VAT application is filed. Files must be PDFs of up to 15 MB each. The list follows the FTA service cards (updated 19.08.2026):
| Document | Corporate Tax | VAT (TRN) |
|---|---|---|
| Valid licence, including branch licences | yes | yes |
| Certificate of incorporation, MOA or partnership agreement | if available | if available |
| Passport and Emirates ID | of owners with a stake above 25% and signatories | of owners and signatories |
| Proof of the signatory's authority | yes | power of attorney, if the manager is not named in the MOA |
| Declaration letter on taxable supplies and sales by month | — | yes, signed and stamped |
| Invoices, contracts, orders, tenancy contracts | — | yes, depending on the application type |
| Bank letter with account details | — | optional |
For VAT, the main work is proving turnover: a monthly breakdown of sales and the documents that support it. The FTA returns an incomplete file with a request, and the review period shifts.
Accounting in Dubai: what the accountant does
A company must keep records that allow the FTA to verify revenue, taxable profit and eligibility for reliefs. On an ongoing basis, the accountant:
- posts bank transactions and source documents and reconciles the books with the bank statement;
- keeps the asset register and records liabilities and ownership stakes;
- prepares the data for VAT returns for each period and for the annual CT return;
- keeps track of deadlines: registrations, returns and approaching the VAT threshold.
The plan is designed for a company with up to 20 transactions a month, which is what a small service or consulting business usually looks like at the start. For larger volumes, we price the terms separately.
FTA deregistration
When a company closes or stops trading, the FTA registration is cancelled separately for CT and for VAT. Both services are free in EmaraTax (according to the FTA as of 17.10.2026).
| Parameter | Corporate Tax | VAT (TRN) |
|---|---|---|
| Filing deadline | 3 months from the date of cessation of business, liquidation or dissolution (FTA Decision No. 6 of 2023) | 30 working days from the date the obligation to deregister arises |
| Grounds | liquidation, closure of the business, sale, merger, duplicate number, transfer of management abroad | cancellation of the licence, no more taxable supplies, turnover below the registration threshold |
| Documents | licence cancellation document, financial statements up to the date of cancellation | licence cancellation document or liquidation letter, turnover table from the date of registration |
| FTA review | up to 40 working days | up to 30 working days |
| Final step | — | final return and payment no later than 28 days from the date of deregistration; the certificate is issued once taxes and penalties have been paid |
As long as the registration is active, the FTA expects returns under it, even if the licence has already been cancelled. So we plan deregistration together with the liquidation of the company.
How we work
Parallax handles registrations, accounting and deregistration through a licensed partner in Dubai.
- We review the licence, the articles of association, the ownership structure and the expected turnover to determine whether CT and VAT are needed and by when.
- We collect the documents and create the EmaraTax profile.
- We file the applications and answer FTA requests until the number is issued.
- We set up accounting and a return calendar.
The prices below are in euros, excluding 5% VAT. We fix the exact scope and fees in the estimate before payment. If you do not have a company yet, start by choosing a zone and registering a company; its account is covered on the Emirates NBD corporate account page.
Prices
| Service | What is included | Price | |
|---|---|---|---|
| Corporate Tax registration | Registering the company as a Corporate Tax payer in EmaraTax and obtaining the tax number. | €300 | Order |
| VAT registration (TRN) | Registration for 5% VAT with the UAE Federal Tax Authority (FTA) and obtaining a TRN. | €750 | Order |
| Bookkeeping support | Keeping the company's books for up to 20 transactions a month and preparing figures for the returns. | €450/month | Order |
| FTA deregistration | Cancelling Corporate Tax or VAT registration with the UAE Federal Tax Authority when a company closes or its turnover falls. | on request | Order |
Prices in euros, excluding 5% VAT. We fix the exact scope and government fees in a quote before payment. Services are provided together with a licensed partner in Dubai.
Frequently asked questions
Official sources
- FTA: Corporate Tax Registration (service card, updated 19.08.2026) — checked 17.10.2026
- FTA: VAT Registration (service card, updated 19.08.2026) — checked 17.10.2026
- FTA Decision No. 3 of 2024: Corporate Tax registration deadlines — checked 17.10.2026
- FTA: Small Business Relief — checked 17.10.2026
- FTA: 30 September 2026, deadline for 2025 CT returns (26.09.2026) — checked 17.10.2026
- FTA: Corporate Tax FAQs — checked 17.10.2026
- FTA: Corporate Tax Deregistration (updated 31.08.2026) — checked 17.10.2026
- FTA Decision No. 6 of 2023: CT deregistration deadlines — checked 17.10.2026
- FTA: VAT Deregistration (updated 24.09.2026) — checked 17.10.2026
- u.ae: Corporate tax (updated 30.03.2026) — checked 17.10.2026
- u.ae: Value Added Tax (updated 30.03.2026) — checked 17.10.2026
- u.ae: Filing a tax return for VAT (updated 30.03.2026) — checked 17.10.2026
- WAM (Aletihad): UAE Ministry of Finance extends Small Business Relief to 2029, 07.08.2026 — checked 17.10.2026