VAT
VAT was introduced across the UAE on 1 January 2018 at a standard rate of 5%. Registration is mandatory when taxable supplies and imports exceed AED 375,000, and voluntary registration is possible above AED 187,500.
Corporate tax
Federal Decree-Law No. 47 of 2022 applies to financial years beginning on or after 1 June 2023: 0% on taxable income up to AED 375,000 and 9% above. Qualifying Free Zone Persons can benefit from 0% on qualifying income.
Set-up checklist
- Choose mainland or free zone based on customers, activities and tax position
- Register for corporate tax and, when thresholds are met, VAT
- Set up a chart of accounts and bookkeeping that support IFRS reporting
- Keep invoices and records in a form that meets UAE requirements
- Plan your first corporate tax year and filing deadline
How we help
Headquartered in Sharjah, we provide bookkeeping, IFRS reporting and ERP setup for companies entering the UAE. For tax registrations and filings, always work with the Federal Tax Authority's rules or a registered tax agent.
This article is general information, not accounting, tax or legal advice. Rates, thresholds and effective dates should be confirmed with the official sources (IFRS Foundation, tax authorities, regulators) or your adviser before acting.