The UAE is known for a business-friendly tax system, but new companies still have registration and filing duties. This is a general overview, not tax advice for your case.
Corporate tax
- A rate of 0% applies to taxable income up to AED 375,000.
- A rate of 9% applies to taxable income above AED 375,000.
- Companies need to register with the Federal Tax Authority and file a return, even where the amount due is zero.
- Qualifying free zone persons may have special treatment if they meet the conditions.
VAT
- The standard rate is 5%.
- Registration is mandatory when taxable supplies exceed AED 375,000 over twelve months.
- Voluntary registration is possible from AED 187,500.
Bookkeeping
Keep invoices, contracts and bank records organised from the first month. Clean books make returns faster and cheaper.
What to do now
- Confirm whether your activity and zone qualify for any special regime.
- Register on time and note filing deadlines.
- Work with an accountant who knows UAE rules.
Free Zones Hub can connect you with accounting, VAT and corporate tax support as part of your setup.
Information is general guidance and not legal or tax advice. Rules and fees are set by the authorities and may change.