Corporate Tax & VAT without surprises.

It depends on whether your company qualifies as a Qualifying Free Zone Person (QFZP) under Cabinet Decision No. 55 of 2023. A QFZP can apply a 0% corporate tax rate on Qualifying Income — broadly, income derived from transactions with other free zone entities or from certain international activities. However, non-qualifying income (such as revenue from UAE mainland customers) is taxed at the standard 9% rate. To maintain QFZP status your company must have adequate substance in the free zone, derive qualifying income, and meet the de minimis threshold for non-qualifying revenue. We assess your structure and advise on how to structure activities to maximise the 0% benefit.

VAT registration with the Federal Tax Authority (FTA) is mandatory once your UAE taxable supplies and imports exceed AED 375,000 in any consecutive 12-month period, or where you anticipate exceeding this threshold in the next 30 days. Voluntary registration is available once supplies exceed AED 187,500, and it often makes sense early to reclaim input VAT on setup costs. Businesses below the voluntary threshold cannot register. Once registered, you must submit quarterly VAT returns (or monthly, in some cases) via the EmaraTax portal. We handle registration, configure your accounting software to record VAT correctly, and file every return on time.

The standard UAE corporate tax rate is 9% on taxable income exceeding AED 375,000 per financial year, introduced by Federal Decree-Law No. 47 of 2022 and effective for financial years beginning on or after 1 June 2023. Taxable income up to AED 375,000 is taxed at 0%, providing relief for small businesses. Qualifying Free Zone Persons pay 0% on qualifying income and 9% on non-qualifying income. A different 15% rate applies to large multinationals that fall under the OECD Pillar Two global minimum tax rules (broadly, groups with consolidated revenue above €750 million). We determine the applicable rate for your specific structure.

QFZP is a special tax designation available to free zone companies that meet specific conditions set out in UAE Cabinet and Ministerial Decisions. To qualify, a company must: be incorporated and registered in a recognised UAE free zone; have adequate economic substance (real operations, employees, or assets) in the free zone; derive income that falls within the definition of Qualifying Income; and not elect to be subject to standard corporate tax. Qualifying Income includes income from transactions with other free zone persons and certain internationally-sourced income. Maintaining QFZP status requires annual review, because a misstep — such as earning too much non-qualifying revenue — can result in losing the status for the entire tax period. We monitor your income mix and flag risks proactively.

A Tax Residency Certificate (TRC) — also called a Tax Domicile Certificate — is issued by the Federal Tax Authority and proves that your company (or individual) is a UAE tax resident. Companies need a TRC to benefit from the UAE's network of double tax treaties, which cover over 130 countries and can reduce or eliminate withholding tax on dividends, royalties, and interest paid from those countries. To apply, the company must have been incorporated for at least one year, have a valid trade licence, and be able to demonstrate genuine UAE operations. We compile the supporting documents, submit the application via EmaraTax, and typically obtain the TRC within 10–15 business days.