UAE Corporate Tax & VATAdvisory for Growing Businesses
Navigate Federal Tax Authority requirements with clear threshold planning, EmaraTax registrations, and timely statutory filings.
Statutory Registration Rule: Every business holding an active UAE trade licence must register for Corporate Tax on EmaraTax, regardless of whether it operates in Mainland or a Free Zone, and regardless of revenue or profit.
UAE Tax Thresholds at a Glance
Clear statutory rates, revenue thresholds, and filing schedules for businesses in the UAE.
| Tax Regime | Statutory Rate | Applicable Threshold | Filing Schedule |
|---|---|---|---|
| Corporate Tax | 9% standard rate | Net profit exceeding AED 375,000 (0% on profit up to AED 375,000) | Annual return within 9 months of financial year-end |
| Value Added Tax (VAT) | 5% standard rate | Mandatory above AED 375,000 turnover (Voluntary from AED 187,500) | Quarterly filing (or monthly if assigned by FTA) |
| Small Business Relief | 0% effective rate | Gross revenue under AED 3,000,000 (available through Dec 31, 2026) | Annual election declared within standard tax return |
| Qualifying Free Zone (QFZP) | 0% qualifying rate | Qualifying Income meeting substance and audited accounts criteria | Annual corporate tax return with audited financial statements |
Free Zone Corporate Tax: Qualifying vs Non-Qualifying
The 0% rate is not automatic. Free Zone companies must satisfy strict qualifying conditions to benefit.
Qualifying Free Zone Income
Applies when all statutory Qualifying Free Zone Person (QFZP) conditions are met.
- Transactions with other Free Zone persons (unless an excluded activity).
- Qualifying activities such as manufacturing, logistics, and fund management.
- Maintaining adequate economic substance, staff, and operating expenditure in the UAE.
- Preparing and maintaining audited financial statements for every tax period.
Non-Qualifying & Excluded Revenue
Revenue subject to standard 9% Corporate Tax above the AED 375,000 threshold.
- Direct commercial transactions with mainland UAE businesses or retail consumers.
- Excluded activities including banking, insurance, and commercial property leasing to individuals.
- Exceeding the de minimis threshold (5% of total revenue or AED 5,000,000, whichever is lower).
- Failure to maintain required economic substance or audited financial records.
What Truss Delivers for Tax Compliance
Complete assistance from initial FTA registration through ongoing quarterly returns and annual filings.
Tax Diagnostic
We review your trade licence, commercial contracts, and revenue streams to establish your tax classification and QFZP eligibility.
EmaraTax Registration
Submission and approval of your Corporate Tax and VAT registrations on the Federal Tax Authority EmaraTax portal.
Routine VAT Returns
Quarterly computation of output VAT and deductible input VAT, followed by timely filing before FTA deadlines.
Corporate Tax Filing
Reconciliation of accounting profit with tax deductions, preparation of the return, and submission within 9 months of year-end.
Frequently Asked Questions
Key clarifications on registration mandates, thresholds, and relief provisions.
Yes. Registration is mandatory for all UAE legal entities, including Free Zone companies. Even if all income qualifies for the 0% rate, the company must obtain a Tax Registration Number (TRN) and file an annual tax return.
Registration is mandatory when taxable turnover exceeds AED 375,000 in the past 12 months or is expected to exceed it within the next 30 days. Companies with turnover above AED 187,500 may register voluntarily.
Eligible resident companies with gross revenue under AED 3,000,000 in a relevant tax period can elect for Small Business Relief. This treats the company as having zero taxable income for periods ending on or before December 31, 2026.
Tax returns and any tax liability must be submitted within 9 months from the end of the financial year. For businesses ending their financial year on December 31, the deadline is September 30 of the following year.
Ensure Your Business Remains Tax Compliant in the UAE
Schedule a consultation with our tax advisory team to evaluate your QFZP qualification, register on EmaraTax, and prepare statutory filings.