UAE corporate tax and VAT: a simple guide for new companies

· 1 min read · By the Biznexa team

An accountant reviewing a client's tax position

The UAE is still one of the most tax-friendly places to run a business, but every company now has tax obligations. Here's the simple version.

Corporate tax

  • Applies to financial years starting on or after 1 June 2023
  • 0% on taxable profit up to AED 375,000
  • 9% on taxable profit above AED 375,000
  • Registration is required for every company, including free zone companies — even if you expect to pay no tax
  • Free zone companies that meet the conditions of a "qualifying free zone person" may pay 0% on qualifying income

VAT

  • The standard VAT rate is 5%
  • Registration is mandatory once your taxable supplies or imports exceed AED 375,000 in the last 12 months, or are expected to in the next 30 days
  • You can register voluntarily from AED 187,500
  • VAT returns are usually filed quarterly

What to keep on record

  • Invoices, receipts and contracts
  • Bank statements and a clear separation between personal and company money
  • Proper bookkeeping from day one — it makes tax returns, audits and bank reviews much easier

Personal income tax

There is no personal income tax on salaries in the UAE, which is one reason so many founders and professionals move here.

How we help

We handle corporate tax and VAT registration, bookkeeping and filing so you stay compliant. Rules and thresholds are set by the Federal Tax Authority and can change — we keep your filings up to date. See our VAT, tax & accounting service.

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