đź“Ś What is Corporate Tax in the UAE?
Corporate Tax is a direct tax levied on the net profit of businesses operating in the UAE. The standard rate is 9% on taxable income exceeding AED 375,000, and 0% for income below that threshold. For Qualified Free Zone Persons, a 0% tax rate may apply—but return filing is mandatory regardless of income.
Relevant Law: Federal Decree Law No. 47 of 2022
đź“Ś What is VAT in the UAE?
Value Added Tax (VAT) is a 5% indirect tax applicable on most goods and services. All businesses exceeding the mandatory registration threshold of AED 375,000 must register and file VAT returns quarterly or monthly as per FTA guidelines.
Relevant Law: Federal Decree Law No. 8 of 2017 on VAT
📆 Important Corporate Tax & VAT Deadlines
- Corporate Tax Registration: Depends on license issue date – 90 Days from the date of Incorporation
- Corporate Tax Return Filing: First return due in 2025, depending on financial year
- VAT Return Filing: Monthly or quarterly, typically due 28 days after the tax period
- AML Registration (Anti-Money Laundering): Mandatory for DNFBPs (Designated Non-Financial Businesses and Professions)
Penalties for Late Filing
- AED 10,000–AED 50,000 for non-registration or non-filing
- Additional fines per day for continued non-compliance
📚 Books of Accounts & Audit – Why It Matters
UAE tax laws require companies to maintain accurate books of accounts for at least 7 years. Audited financials help in:
- Minimizing tax liability
- Avoiding disputes with FTA
- Applying for VAT refunds or corporate tax exemptions
- Ensuring transparency and investor confidence
Avyanco, as a Registered Tax Agent & Auditor, offers complete bookkeeping, accounting, and statutory audit services aligned with UAE tax laws.
🧾 Corporate Tax & VAT Return Filing Services by Avyanco
âś… Corporate Tax Return Filing
- Corporate tax registration on EmaraTax portal
- Income assessment and classification (qualified vs non-qualified income)
- Expense analysis for deductible items (e.g. salaries, rent, depreciation)
- Filing returns within FTA deadlines
âś… VAT Services
- VAT registration and TRN issuance
- Monthly/quarterly return filing
- VAT audit support & clarifications
- VAT refund application & support
âś… AML Compliance
- AML registration and internal policies setup
- Risk assessment and transaction monitoring tools
💡 Reduce Your Tax Liability – Legally
As per UAE Corporate Tax Law, you can reduce your tax burden through:
- Claiming deductible expenses (employee salaries, office rent, interest on business loans, etc.)
- Applying tax grouping
- Utilizing exemptions for free zone companies with qualified income
- Transfer pricing compliance to avoid excess tax on intercompany transactions
Our expert tax consultants analyze your business and advise on the best tax-saving structure in line with the law.
đź’° Tax & VAT Refund Assistance
Have you overpaid your VAT or qualify for tax relief?
- Avyanco helps in filing refund claims
- Document preparation and representation with FTA
- Follow-up until amount is credited
⚖️ UAE Laws Referenced
- Federal Decree Law No. 47 of 2022 – Corporate Tax
- Cabinet Decision No. 49 of 2023 – Penalties on Tax Violations
- Federal Law No. 20 of 2018 – Anti-Money Laundering
- Cabinet Resolution No. 58 of 2020 – Ultimate Beneficial Owner Requirements
