CORPORATE TAXAND VAT
Tax in the UAE is simpler than in many countries, but it is not optional. Most companies need to register for corporate tax, and many need to register for VAT. Missing a registration or a return can lead to penalties.
Draft text — under review by Milton Bridge
Milton Bridge handles corporate tax and VAT registration and filings for mainland and free zone companies. Our accountants keep the records the returns are based on, and we tell you clearly what applies to your company. For complex structures we work alongside your tax adviser.
UAE corporate tax: who must register
Federal corporate tax was introduced in 2023. In general, the standard rate is 9% on taxable profit above a threshold, with a 0% rate on profit below it. Qualifying income of a qualifying free zone person may be taxed at 0%, subject to conditions.
Registration is generally required for UAE companies, including free zone companies, even where little or no tax is payable. Some individuals doing business may also need to register depending on their turnover. Whether and how much you pay depends on your structure and income, and should be reviewed with an adviser.
VAT registration in the UAE
VAT applies in the UAE at a standard rate of 5%, with some supplies zero-rated or exempt. Businesses must register once their taxable supplies pass the mandatory registration threshold, and may register voluntarily above a lower threshold.
We check your turnover and activities against the current thresholds and register you when required. We do not quote the threshold amounts from memory; we confirm them for your case.
Corporate tax and VAT returns and deadlines
Registered businesses file VAT returns on the schedule assigned to them and an annual corporate tax return for each tax period. Both depend on accurate, up-to-date accounting records.
- VAT returns on the assigned tax period, with payment of any VAT due.
- Annual corporate tax return and payment for each tax period.
- Records kept for the period the law requires.
- Updates to your tax registration when your company details change.
Free zone companies and the 0% corporate tax rate
A free zone company is not automatically taxed at 0%. To benefit, it typically needs to be a qualifying free zone person, earn qualifying income, maintain adequate substance and meet other conditions. If it fails a condition, it may be taxed at the standard rate.
We review how your free zone company earns its income and flag risks early. The final assessment of your position should be confirmed with a tax adviser.
How it works with Milton Bridge
- 1
Tax check
On WhatsApp or a call we review your company, activity and turnover and confirm what you need to register for and when.
- 2
Registration
We prepare and submit your corporate tax and, where required, VAT registration with the tax authority.
- 3
Bookkeeping and records
Our accountants keep your books in order so each return is based on accurate figures. Documents can be sent digitally or collected by our couriers.
- 4
Returns and payments
We prepare and file your VAT and corporate tax returns on time and tell you the amount due before each deadline.
- 5
Ongoing support
We keep track of deadlines, update your registration when your company changes and coordinate with your tax adviser on complex questions.
Corporate Tax and VAT: frequently asked questions
Do I need to register for corporate tax in the UAE?
In most cases, yes — UAE companies, including free zone companies, generally need to register for corporate tax. Registration is often required even if little or no tax is payable. We check your case and register you.
What is the corporate tax rate in the UAE?
The standard UAE corporate tax rate is 9% on taxable profit above a threshold, with 0% below it. Qualifying income of a qualifying free zone person may be taxed at 0%. What applies to you depends on your structure and income.
Do free zone companies pay corporate tax?
It depends. Qualifying free zone persons may pay 0% on qualifying income, but only if they meet the conditions, including substance requirements. Other income may be taxed at the standard rate. Review your position with a tax adviser; we help you stay compliant.
When do I need to register for VAT in the UAE?
You must register for VAT once your taxable supplies pass the mandatory registration threshold, and you can register voluntarily above a lower threshold. The standard VAT rate is 5%. We check your turnover against the current thresholds and register you when needed.
How often do I file VAT returns?
You file VAT returns on the tax period the tax authority assigns to your business, typically quarterly for many businesses. Your period is shown on your VAT registration. We file each return on time.
What happens if I miss a tax registration or return?
Late registration or late filing can lead to administrative penalties. The sooner you correct it, the better. We help you register, catch up on overdue returns and get back on schedule.
Can Milton Bridge do my accounting as well as tax filings?
Yes, our accountants can keep your books and prepare the returns from them. Accurate accounting is the basis of correct tax filings. See our accounting services for details.
How much do corporate tax and VAT services cost?
The cost depends on your transaction volume, the number of returns and the complexity of your company. Use the cost calculator for an estimate or book a free expert consultation for an exact quote.
