UAE Tax Services · 2026 Guide

Tax Services in Dubai:
VAT, Corporate Tax
& Compliance

Whether you are a startup, an SME, or an established enterprise operating in Dubai, managing your tax obligations is no longer optional. Since the UAE introduced VAT in 2018 and corporate tax in 2023, businesses of every size face real compliance requirements — and real penalties if they fall short.

VAT Registration & Filing
Corporate Tax Returns
FTA Compliance
UBO & ESR Reporting
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9%
Corporate tax above AED 375,000
📊
5%
VAT rate on taxable supplies
⚠️
AED 10K
Minimum FTA penalty per violation
📅
9 Months
To file corporate tax return after year end
UAE Tax Framework

Overview of the UAE Tax System

The UAE has one of the most business-friendly tax frameworks in the world — no personal income tax, and a low overall tax burden compared to most global jurisdictions. Since 2018, the UAE has progressively expanded its framework to include three key taxes.

🧾
Since 2018

Value Added Tax (VAT)

Introduced in January 2018 at a standard rate of 5%. Applies to most goods and services supplied by VAT-registered businesses across the UAE.

5% standard rate
🚬
Selective

Excise Tax

Levied on specific goods harmful to health or the environment — including tobacco, energy drinks, and carbonated beverages. Rates vary by product category.

50–100% on select goods
🏛️
Since June 2023

Corporate Tax

Applies a 9% rate on business profits above AED 375,000. All UAE-registered businesses must register with the FTA, even if taxable income is below the threshold.

9% above AED 375,000

Still one of the world’s most tax-friendly jurisdictions

Despite the introduction of VAT and corporate tax, Dubai remains highly competitive globally. Many advantages remain firmly in place for businesses and individuals.

No personal income tax on salaries or earnings
0% corporate tax on profits up to AED 375,000
No capital gains tax or withholding tax
No inheritance or wealth tax
Extensive double-taxation treaty network
🏦

Administered by the Federal Tax Authority (FTA)

All UAE taxes — VAT, Excise, and Corporate Tax — are administered by the Federal Tax Authority (FTA). Compliance is mandatory for qualifying businesses registered across all UAE emirates, including Dubai, Abu Dhabi, and Sharjah.

UAE Tax Types

Types of Tax in the UAE:
VAT, Corporate Tax & Excise

A practical breakdown of every tax that applies to businesses operating in Dubai and the UAE — rates, thresholds, obligations, and exemptions.

01
🧾
Value Added Tax (VAT)
5% Standard Rate

VAT is applied at 5% on most goods and services in the UAE. Businesses with taxable supplies exceeding AED 375,000 per year are required to register with the FTA. Voluntary registration is available for businesses with supplies above AED 187,500.

Key Obligations
Quarterly or monthly return filing
Accurate tax invoicing
Tax records kept for 5+ years
Prompt payment of VAT liability
Zero-Rated Supplies (0%)
Exports
International transport
Certain healthcare & education
Precious metals investment
Exempt Supplies
Residential property
Bare land transactions
Certain financial services
02
🏛️
UAE Corporate Tax
9% Above AED 375K

UAE Corporate Tax came into force for financial years starting on or after 1 June 2023. It applies to all juridical persons — companies, partnerships, and other entities registered in the UAE — and to foreign entities with a permanent establishment in the UAE.

Tax Rate Schedule
Taxable Income Corporate Tax Rate
AED 0 – AED 375,000 0%
Above AED 375,000 9%
Qualifying Free Zone Persons (subject to conditions) 0% on qualifying income
Small Business Relief: Available for businesses with revenue below AED 3 million (for tax periods ending before 31 December 2026), effectively exempting them from corporate tax. Businesses must still register for corporate tax even if they qualify for relief.
03
🚬
Excise Tax
50% – 100% Selective

Excise Tax applies to specific categories of goods in the UAE. Businesses that import, produce, or stockpile excisable goods must register with the FTA. The tax is designed to reduce consumption of goods harmful to health or the environment.

Current Excise Rates
50% Carbonated drinks & energy drinks
100% Tobacco products & electronic smoking devices
100% Sweetened drinks
Who Must Register
Importers of excisable goods
Producers of excisable goods
Businesses that stockpile excisable goods
Warehouse keepers (designated zones)
What We Offer

Our Tax Services in Dubai

Our team of FTA-registered tax agents and certified accountants delivers a full spectrum of tax services to businesses across Dubai and the wider UAE.

10 Tax services
under one roof
🏛️

Corporate Tax Registration

Ensuring your business is registered with the FTA within the required timeframe and correctly categorised for your activity type.

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Corporate Tax Return Filing

Accurate, timely preparation and submission of corporate tax returns, including Small Business Relief applications where eligible.

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VAT Registration & Deregistration

Assessment of eligibility, full application management, and ongoing FTA correspondence for VAT registration and deregistration.

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VAT Return Filing & Advisory

Regular preparation of VAT returns, reconciliations, and strategic advisory on input tax recovery to optimise your VAT position.

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Tax Impact Assessment

Evaluating how corporate tax, VAT, and excise obligations affect your specific business model, margins, and cash flow.

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Transfer Pricing Advisory

Supporting businesses with related-party transactions to ensure compliance with OECD-aligned transfer pricing rules under UAE Corporate Tax law.

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FTA Audit Representation

Expert representation and preparation if your business is selected for an FTA tax audit — protecting your interests throughout the process.

📜

Tax Residency Certificate Assistance

Helping businesses and individuals obtain UAE Tax Residency Certificates for double-taxation treaty purposes and international compliance.

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Excise Tax Compliance

Registration, return filing, and advisory for businesses importing, producing, or dealing in excisable goods subject to UAE Excise Tax.

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Tax Planning & Structuring

Proactive strategies to legally minimise your tax liability while maintaining full FTA compliance — tailored to your business structure.

Delivered by FTA-Registered Tax Agents & Certified Accountants

All Navira Corporate tax services are delivered by FTA-registered tax agents with proven UAE compliance expertise. We serve mainland, free zone, and offshore entities across all emirates.

FTA Registered ACCA Qualified UAE Tax Specialists

Need expert tax support in Dubai? Speak to a Navira Corporate tax specialist today — free initial consultation, no obligation.

📅 Book Free Consultation
Deadlines & Penalties

UAE Corporate Tax: Deadlines
and Filing Obligations

Failure to meet corporate tax and VAT deadlines is one of the most common causes of FTA penalties for Dubai businesses. Know your key dates — and what missing them will cost.

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Key Tax Deadlines

FTA filing & payment schedule

Obligation Deadline
Corporate Tax Registration
Within 3 months of becoming liable
Corporate Tax Return Filing
Within 9 months of tax period end
Corporate Tax Payment
Same deadline as return filing
VAT Return Filing
28 days after tax period end
VAT Payment
By VAT return filing deadline
Excise Tax Return
15th of the following month
⚠️

FTA Penalties for Non-Compliance

Current penalty schedule — AED amounts

Violation Penalty
Failure to register for VAT on time
AED 10,000
Failure to submit VAT return on time
AED 1,000 – 2,000
Late payment of VAT due
2% → up to 300%
Failure to register for Corporate Tax
AED 10,000
Failure to file Corporate Tax return
AED 500 – 1,000/mo
Failure to maintain financial records
AED 10,000 – 20,000
Providing incorrect information to FTA
AED 3,000 – 5,000
🛡️

Don’t risk FTA penalties. Navira Corporate’s registered tax advisors manage your deadlines, filings, and FTA correspondence — so you never miss a date or face an avoidable fine.

📅 Book Free Consultation

FTA penalties are subject to change. Always consult a registered tax agent for the current penalty schedule applicable to your business.

Tax Comparison

Tax Obligations: Freezone vs
Mainland Companies in Dubai

A common source of confusion for business owners is how tax rules differ between mainland and freezone companies. Here is a clear side-by-side breakdown.

Factor
🏙️

Mainland Company

DET Licensed
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Freezone Company

DMCC, DIFC, RAKEZ & others
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VAT Registration
Same rule
Required if taxable supplies exceed AED 375,000/yr
Same rule
Required if taxable supplies exceed AED 375,000/yr
🏛️
Corporate Tax Rate
9% on profits above AED 375,000 — simple, tiered rate
Potential advantage
0% on qualifying income — subject to conditions
Qualifying Free Zone Status
Not applicable
Conditions apply
Must meet ‘Qualifying Free Zone Person’ criteria
⚠️
Non-Qualifying Income
9% standard rate applies above threshold
Risk area
9% on non-qualifying income — including mainland transactions
📁
Financial Record Keeping
Same rule
Mandatory — minimum 5 years
Same rule
Mandatory — minimum 5 years
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FTA Registration
Same rule
Mandatory for all mainland entities
Same rule
Mandatory for all freezone entities
⚠️

Freezone companies with mainland exposure: Freezone companies that engage in transactions with mainland UAE businesses may lose their qualifying status for the 0% corporate tax rate and face the standard 9% on those revenues. Professional tax advice is strongly recommended for any freezone entity with mainland trading activity.

Unsure whether mainland or freezone is better for your tax position? Our tax specialists will assess your specific structure and provide a clear recommendation.

📅 Get Tax Advice
FTA Accreditation

Why You Need a Registered
Tax Agent in Dubai

Not all accountants or consultants in Dubai are authorised to act as your formal representative before the FTA. A Registered Tax Agent is an individual or firm officially accredited by the FTA to represent taxpayers and manage their tax affairs directly with the authority.

01

Authorised FTA representation — file returns, respond to FTA queries, and represent you in assessments and objections directly with the authority.

02

Agent portal access — direct access to the FTA’s registered agent portal for faster processing and real-time status updates on your filings.

03

Legal accountability — registered tax agents carry professional indemnity insurance, providing you with formal protection for your tax affairs.

04

Current FTA knowledge — up-to-date expertise on FTA policy changes, which are frequent and material to your compliance position.

Sectors We Serve
Manufacturing
Retail
Real Estate
Technology
Professional Services
Hospitality
All UAE Emirates
✅ FTA Registered Firm

Navira Corporate is an FTA-Registered Tax Agent

Our firm is officially accredited by the Federal Tax Authority and has represented clients across multiple industries in Dubai and all UAE emirates — from initial registration through to audit defence.

7+ Industry sectors served
All UAE emirates covered
FTA Agent portal access
100% Compliance focused
📅 Book Free Consultation
Important: Always verify that your tax advisor is formally registered with the FTA before engaging them for filing or representation. Only FTA Registered Tax Agents can legally represent your business in FTA audits and disputes.
FAQ

Frequently Asked Questions:
Tax Services in Dubai

Expert answers to the most commonly asked questions about VAT, Corporate Tax, and FTA compliance in the UAE.

Most businesses in Dubai are subject to VAT (5% on taxable supplies above AED 375,000/year) and Corporate Tax (9% on profits above AED 375,000). Businesses dealing in excisable goods — tobacco, energy drinks, carbonated beverages — also pay Excise Tax. There is no personal income tax in the UAE.
The UAE Corporate Tax rate is 9% on taxable income exceeding AED 375,000. Income below this threshold is taxed at 0%. Qualifying Free Zone Persons may be eligible for a 0% rate on qualifying income, subject to conditions set by the Ministry of Finance.
Freezone companies that meet the criteria for ‘Qualifying Free Zone Person’ status can benefit from a 0% corporate tax rate on qualifying income. However, income that does not meet the qualifying criteria, or transactions with mainland UAE entities, may be subject to the standard 9% rate. Expert advice is essential to maintain qualifying status.
VAT returns must be filed and payments made within 28 days of the end of the relevant tax period. Most businesses in Dubai file quarterly, though some are required to file monthly based on their taxable turnover or FTA instruction.
The FTA applies fixed and variable penalties for late registration, filing, and payment. Late VAT payment attracts 2% of the unpaid amount immediately, increasing to 4% after 7 days, then 1% per day. Penalties can also affect your standing for government contracts and business licence renewals.
Look for a firm with: (1) FTA Registered Tax Agent status, (2) experience across VAT, Corporate Tax, and Excise Tax, (3) sector-specific knowledge relevant to your industry, (4) a verifiable track record with UAE businesses, and (5) clear service scope and fee transparency. Avoid consultants who cannot demonstrate FTA registration credentials.
VAT registration can technically be done without a consultant through the FTA’s online portal. However, errors in initial registration — wrong tax period, incorrect activity codes, missed grouping opportunities — can create long-term compliance issues. Most businesses benefit significantly from professional guidance, especially for the first return filing cycle.

Have a tax question not covered here? Speak directly with an FTA-registered tax specialist — free initial consultation, no obligation.

📅 Book Free Consultation