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UAE Corporate Tax, VAT & Compliance Calendar for New Business Owners (2026)

What a new UAE company owner must register for, track and file — corporate tax, VAT and the deadlines that carry penalties — explained without the jargon.
9 min readLast reviewed: September 2026By OREL Advisory
Who this applies to
  • New UAE company owners and founders
  • Free-zone businesses assessing “qualifying income” and the 0% rate
  • Anyone unsure what to register for, or already behind on filings
In short

The UAE levies corporate tax at 9% on taxable profit above AED 375,000 (0% below), with a 0% rate on “qualifying income” for compliant free-zone companies. VAT is 5%, with mandatory registration above AED 375,000 in taxable supplies and voluntary registration above AED 187,500. New owners should register correctly, keep proper records from day one, and run a compliance calendar so deadlines are never missed. Exact obligations depend on your structure and are confirmed with the Federal Tax Authority.

The UAE’s tax landscape changed with the introduction of corporate tax, and new owners often aren’t sure what they must register for, track and file. This guide covers corporate tax, VAT and the compliance calendar every new business owner needs — in plain English.

Corporate tax in one paragraph

The UAE levies corporate tax at 9% on taxable profit above AED 375,000, and 0% below that. Registration with the Federal Tax Authority (FTA) is required even if you expect to pay 0%. Small Business Relief has been available to companies below a revenue threshold (commonly cited at AED 3 million) for a limited period — confirm whether it still applies to your tax year. Very large multinational groups (global revenue above the OECD threshold) face a separate 15% domestic minimum top-up tax.

Do free-zone companies really pay 0%?

A free-zone company can benefit from a 0% rate on “qualifying income” if it meets the conditions — including adequate substance and staying within the rules on non-qualifying income. But not all income qualifies, and getting this wrong can pull you into the 9% rate. It should be assessed carefully, not assumed.

VAT: thresholds and what to do

VAT is charged at 5%. Registration is mandatory once your taxable supplies exceed the threshold, and voluntary above a lower one:

RegistrationThreshold (taxable supplies, 12 months)
MandatoryAbove AED 375,000
VoluntaryAbove AED 187,500

Once registered, you charge VAT, reclaim input VAT on eligible costs, and file returns on your assigned cycle through the FTA’s EmaraTax system.

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Records you must keep from day one

Good bookkeeping isn’t optional — it’s what filings are built on. From day one, keep organised records of invoices, contracts and expenses, and fix your financial year. Clean records make every deadline easier and protect you if your position is ever reviewed.

The compliance calendar: dates that carry penalties

  • Corporate tax registration — within the window after establishing your business.
  • Corporate tax return — filed within months of your financial-year end.
  • VAT returns — on your assigned quarterly or monthly cycle.
  • Licence and visa renewals — tracked alongside tax so nothing lapses.

Exact dates depend on your financial year and registration dates — which is precisely why a calendar with reminders matters. Missed deadlines carry administrative penalties.

If you’re already behind

Act sooner rather than later. Catching up and registering correctly reduces your exposure to penalties. The authorities set the rules; the job of a good advisor is to help you meet them properly and calmly.

Key takeaways
  • Corporate tax: 9% above AED 375,000, 0% below — registration required even at 0%.
  • Free-zone 0% applies only to “qualifying income” meeting the conditions.
  • VAT is 5%: mandatory above AED 375,000, voluntary above AED 187,500.
  • Keep clean records from day one; fix your financial year early.
  • Run a compliance calendar — missed deadlines carry penalties.
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This guide is general information, not legal, tax or immigration advice. UAE rules, thresholds, fees and eligibility are set by the relevant authorities — including ICP, GDRFA, the Federal Tax Authority and the individual free zones — and can change; figures are indicative and current as of the review date above. Always confirm your specific position with a qualified advisor before acting. Reviewed by the OREL Advisory team.