UAE business services

Corporate tax and VAT in the UAE

UAE corporate tax is 9% on taxable income above AED 375,000, and every company must register even when no tax is due. VAT is 5%, with mandatory registration once taxable supplies and imports pass AED 375,000 over twelve months. Ihya coordinates registration, returns and FTA correspondence through FTA registered tax agents.

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The numbers that matter

Rule	What it means
Corporate tax rate	0% on taxable income up to AED 375,000, 9% above it
Registration deadline (new companies)	Within three months of incorporation, for companies incorporated on or after 1 March 2024
Late registration penalty	AED 10,000, waived if the first return is filed within seven months of the first tax period end
Return and payment due	Within nine months of the end of each tax period
Small Business Relief	Elective relief for resident businesses with revenue up to AED 3 million, for tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131 of 2026). Not for Qualifying Free Zone Persons or members of large multinational groups
Audited financial statements	Needed if revenue exceeds AED 50 million, if you claim Qualifying Free Zone Person status, or if you are in a tax group
VAT rate	5%
VAT registration	Mandatory once taxable supplies and imports exceed AED 375,000 over the previous twelve months, or will within the next 30 days. Voluntary from AED 187,500
eInvoicing, revenue AED 50 million or more	Appoint an accredited provider by 30 October 2026, live from 1 January 2027
eInvoicing, other businesses in scope	Appoint a provider by 31 March 2027, live from 1 July 2027 (government entities from 1 October 2027)

Rules as published by the FTA and Ministry of Finance and summarised in the sources below, checked on 27 October 2026. Your partner tax agent confirms how each one applies to you.

What our partner tax agents handle, coordinated by us

Corporate tax registration on EmaraTax.
Corporate tax returns, including Small Business Relief and free zone elections where they apply.
VAT registration and returns (usually quarterly), plus voluntary disclosures when something needs fixing.
eInvoicing readiness: choosing an accredited provider and getting your accounting system ready.
FTA correspondence through your partner tax agent, with every letter logged and explained in plain English.

What changed in 2026

Amendments to the Tax Procedures Law (Federal Decree Law No. 17 of 2025) and the VAT Law (Federal Decree Law No. 16 of 2025) took effect on 1 January 2026. Among the changes: a five year window to claim refunds or use credit balances, with older balances near or past that limit to be claimed by 31 December 2026, and businesses no longer issue tax invoices to themselves under the reverse charge.

eInvoicing penalties are set by Cabinet Decision No. 106 of 2025, including AED 5,000 for each month a business misses its implementation deadline. If your revenue is AED 50 million or more, the provider appointment deadline was 30 October 2026 and go live is 1 January 2027, so any delay now costs money.

Who does the regulated work. Ihya Digital is a marketing and technology company. Company licensing is handled by licensed setup partners, tax registration and filing by tax agents registered with the Federal Tax Authority, and accounting by licensed accounting firms. We coordinate the work, keep your compliance calendar and stay your single point of contact.

Need a tax agent directly? Browse every firm on the FTA tax agent directory.

Sources

Quick answers

0% on taxable income up to AED 375,000 and 9% on taxable income above that. Large multinational groups can face additional rules.

A fixed AED 10,000. The FTA waives it if the first corporate tax return is filed within seven months of the end of the first tax period.

Within nine months of the end of each tax period, and any tax due must be paid by the same date.

From 1 January 2027 for businesses with revenue of AED 50 million or more, from 1 July 2027 for other businesses in scope, and from 1 October 2027 for government entities. Each must appoint an accredited service provider first: by 30 October 2026 for the largest businesses and by 31 March 2027 for the rest.

You are not obliged to appoint one, but a registered tax agent can represent you before the FTA and handle filings and audits. Our partners are registered with the FTA.

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