The UAE went from a no-tax reputation to a real compliance regime in a couple of years — 5% VAT since 2018, and 9% corporate tax from June 2023. Miss a registration deadline and it's a flat AED 10,000 penalty. Kinzaad registers you, files your returns on time and makes sure you pay only what you actually owe.
The UAE introduced federal corporate tax under Federal Decree-Law No. 47 of 2022. It applies to financial years starting on or after 1 June 2023, so most companies hit their first full tax period in 2024. The headline rates are simple:
So a company with AED 500,000 of taxable profit pays 9% on the AED 125,000 above the threshold — about AED 11,250 — not on the whole amount. There's also a separate 15% Domestic Minimum Top-up Tax for very large multinational groups (global revenue above EUR 750 million) from 2025, but that doesn't touch ordinary UAE SMEs.
Small Business Relief. If your revenue is AED 3 million or less in the tax period, you can elect for Small Business Relief and be treated as having no taxable income — effectively 0% — for periods ending on or before 31 December 2026. You still have to register and file. We'll tell you whether electing is genuinely better for your situation.
This is where a lot of business owners get caught out. A free zone licence does not make you exempt. Every free zone company must register and file. You only keep the 0% rate if you meet the test for a Qualifying Free Zone Person (QFZP), and then 0% applies to your qualifying income only — everything else is taxed at 9%.
To be a QFZP and hold on to it, you need to:
Breach the de minimis or substance conditions and you lose QFZP status for that tax period and the following four — the whole company drops to 9%. It's a real trap for trading companies whose customers are mostly onshore. If you're weighing zones, our mainland vs free zone vs offshore guide and the free zone setup page cover the structural side; we handle the tax side here.
Almost everyone. Mainland companies, free zone companies, and many individuals running a business or business activity must register for corporate tax and obtain a Tax Registration Number from the Federal Tax Authority (FTA), even if they expect to pay 0%. The FTA set staggered registration deadlines based on the month your licence was issued. Miss yours and it's a flat AED 10,000 late-registration penalty — the single most common avoidable cost we see.
Once registered, you file one corporate tax return per year, within nine months of the end of your financial year. A company with a 31 December year-end, for example, files by the following 30 September. There are no advance or provisional filings — but you do need your books in order, which is where proper accounting and audit comes in.
The UAE has charged 5% VAT since 1 January 2018. Whether you have to register comes down to your turnover.
Mandatory registration. Once your taxable supplies over the past 12 months pass this — or you expect to in the next 30 days — you must register.
Voluntary registration. Cross this and you can choose to register — useful to reclaim input VAT on your start-up spend.
Filing. Most businesses file VAT returns quarterly via EmaraTax, due within 28 days of each period's end. Larger firms may file monthly.
Not everything is standard-rated. Exports outside the GCC, international transport and some sectors are zero-rated; residential leases and certain financial services are exempt. Getting the treatment right on each line matters — charge VAT you shouldn't and you annoy clients; miss VAT you should have charged and it comes out of your own margin. We map your activities to the correct rate before your first return, then file it for you.
Penalties are real and specific. Late VAT registration is AED 10,000. A late return is AED 1,000 the first time and AED 2,000 for a repeat within 24 months, with further penalties on any tax paid late. Staying on the calendar is far cheaper than catching up.
You focus on the business. We keep you registered, filed and out of penalty territory.
Book a free tax health check. We'll confirm what you need to register for, when it's due, and give you a fixed quote for handling it — VAT and corporate tax under one roof.