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Corporate Tax is 0% on taxable income up to AED 375,000 and 9% on taxable income above AED 375,000.

Law: Article 3(1), Corporate Tax Law (Federal Decree-Law 47/2022); Articles 2-3, Cabinet Decision 116/2022

You must register for VAT when your taxable sales (plus imports) in the last 12 months go over AED 375,000, or will go over it in the next 30 days. Apply to the FTA within 30 days. You may register voluntarily from AED 187,500.

Law: Article 13(1), VAT Law (Federal Decree-Law 8/2017); Articles 7(1)-(2) and 8(1), VAT Executive Regulation

The standard VAT rate in the UAE is 5%. Some supplies are zero-rated (0%, for example exports and international transport) and some are exempt (for example residential rent, bare land and local passenger transport).

Law: Article 3, VAT Law (Federal Decree-Law 8/2017); Articles 45 and 46, VAT Law (Federal Decree-Law 8/2017)

Small Business Relief lets a UAE-resident business with revenue of AED 3 million or less (in that year and every earlier year) be treated as having no taxable income. You choose it in your Corporate Tax return. It is not available to a Qualifying Free Zone Person or a member of a large multinational group, and it applies to tax periods ending on or before 31 December 2029.

Law: Article 21, Corporate Tax Law (Federal Decree-Law 47/2022); Articles 2 and 3, Ministerial Decision 73/2023; Article 1, Ministerial Decision 131/2026

Yes, unless it is a Qualifying Free Zone Person (a free zone company taking the 0% rate on qualifying income). A free zone company taxed at the normal rates can use Small Business Relief if its revenue is AED 3 million or less in that year and every earlier year, and it is not part of a large multinational group. The relief applies to tax periods ending on or before 31 December 2029.

Law: Article 21, Corporate Tax Law (Federal Decree-Law 47/2022); Articles 2 and 3, Ministerial Decision 73/2023; Article 1, Ministerial Decision 131/2026

Free zone companies are subject to Corporate Tax. A Qualifying Free Zone Person pays 0% on its qualifying income and 9% on its other taxable income. A free zone company that does not qualify pays the normal rates: 0% on taxable income up to AED 375,000 and 9% above.

Law: Article 3(1)-(2), Corporate Tax Law (Federal Decree-Law 47/2022); Articles 2-3, Cabinet Decision 116/2022

The Corporate Tax return must be filed, and the tax paid, within 9 months from the end of your tax period. For a 31 December year end, that is 30 September of the next year.

Law: Articles 48 and 53(1), Corporate Tax Law (Federal Decree-Law 47/2022)

Filing the Corporate Tax return late costs AED 500 for each month (or part of a month) for the first 12 months, and AED 1,000 a month after that. Paying late adds 14% a year, charged monthly on the unpaid tax.

Law: Table, Rows 7 and 8, Cabinet Decision 75/2023

A VAT return and the VAT payment are due by the 28th day after the end of your tax period (usually every 3 months), unless the FTA sets another date.

Law: Articles 62 and 64, VAT Executive Regulation

Filing a VAT return late costs AED 1,000 the first time and AED 2,000 if it happens again within 24 months. Paying VAT late adds 14% a year, charged monthly on the unpaid tax.

Law: Table 1, Rows 8 and 9, Cabinet Decision 40/2017 as amended by Cabinet Decision 129/2025

An individual's business is subject to Corporate Tax only if business turnover is more than AED 1,000,000 in a calendar year. Salary, personal investment income and real estate investment income (not needing a licence) do not count. If you pass AED 1 million, register by 31 March of the following year.

Law: Article 2, Cabinet Decision 49/2023; Article 5, FTA Decision 3/2024

Entertainment for customers, shareholders, suppliers or other business partners is only 50% deductible for Corporate Tax (meals, accommodation, transport, admission fees and similar). Staff costs are not in this 50% rule; they are deductible if incurred wholly and exclusively for the business.

Law: Article 32, Corporate Tax Law (Federal Decree-Law 47/2022); Article 28, Corporate Tax Law (Federal Decree-Law 47/2022)

No. VAT on entertainment for people who are not your employees (customers, potential customers, officials, shareholders or investors) cannot be recovered. Entertainment means hospitality such as meals and drinks beyond a normal meeting, accommodation, shows or pleasure trips.

Law: Article 53(1)(a) and 53(2)(a), VAT Executive Regulation

Generally no. VAT on goods or services given free to employees for their personal benefit, including entertainment, cannot be recovered. The exceptions are: it is required by UAE labour law, it is a contractual obligation or documented policy within the FTA's conditions, it is employee health insurance, or it is treated as a deemed supply.

Law: Article 53(1)(c), VAT Executive Regulation; Articles 1-2, FTA Decision 17/2026

Not if the car is available for anyone's personal use. VAT on cars bought, rented or leased for the business cannot be recovered when they can also be used privately. A car here means a road vehicle for up to 10 people (not trucks or forklifts). Licensed taxis, emergency vehicles and cars rented out by a car-rental business are not treated as available for private use.

Law: Article 53(1)(b), 53(2)(b) and 53(4), VAT Executive Regulation

Renting or selling a residential home is generally exempt from VAT, so no VAT is charged. The exception is the first supply of a new residential building (within 3 years of completion), which is zero-rated.

Law: Article 46(2), VAT Law (Federal Decree-Law 8/2017); Article 45, VAT Law (Federal Decree-Law 8/2017)

Dividends a company receives from a UAE-resident company are exempt from Corporate Tax, with no minimum shareholding or holding period. Dividends from foreign companies are exempt only if the participation conditions are met (for example at least 5% held for 12 months).

Law: Articles 22(1)-(2) and 23, Corporate Tax Law (Federal Decree-Law 47/2022)

For Corporate Tax, keep all records and documents for 7 years after the end of the tax period they relate to. The general tax rule is 5 years after the tax period, unless a tax law says longer. For VAT, real-estate records must be kept 15 years and capital-asset records at least 10 years. Keep them longer if there is an FTA dispute or audit.

Law: Article 56, Corporate Tax Law (Federal Decree-Law 47/2022); Article 3, Tax Procedures Executive Regulation (Cabinet Decision 74/2023); Article 71(2), VAT Executive Regulation