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UAE tax, audit and compliance blog
Practical guides on corporate tax, VAT, e-invoicing, free zone audits, AML, payroll and business setup. Every article gives the short answer first and links to the rule behind it. RSS feed.
UAE e-invoicing: deadlines by business size
Under Ministerial Decision No. 244 of 2025, UAE businesses with revenue of AED 50 million or more must appoint an accredited e-invoicing provider by 30 October 2026 and go live on 1 January 2027. Businesses below AED 50 million appoint by 31 March 2027 and go live on 1 July 2027. Business-to-consumer sales are excluded for now.
Read E-invoicingUAE e-invoicing penalties, with worked examples
Cabinet Decision No. 106 of 2025 sets six e-invoicing penalties. Missing your implementation or provider deadline costs AED 5,000 for each month or part month. Each invoice or credit note not sent through the system costs AED 100, capped at AED 5,000 a month. Unreported system failures cost AED 1,000 a day.
Read E-invoicingHow to choose an accredited e-invoicing provider in the UAE
Pick a provider that is fully accredited by the Ministry of Finance, connects to your ERP without manual exports, handles every invoice type you issue, and can onboard you before your deadline. Since 1 October 2026 providers need full accreditation; the old pre-approval stage was removed. Test with your own invoices before you sign.
Read E-invoicingThe five-corner model explained, plus a readiness checklist
In the UAE five-corner model, your system sends invoice data to your accredited provider, which delivers it to the buyer's provider and on to the buyer, while the tax authority receives the invoice data. Each corner has a job, and most failed projects stumble on the first one: the data your own system produces.
Read Corporate TaxMissed corporate tax registration? What the AED 10,000 penalty means
A UAE business that registers for corporate tax after its deadline faces a fixed AED 10,000 administrative penalty under Cabinet Decision No. 10 of 2024. Registration is required even if no tax will be due. Register now, file every return on time and keep records, because later penalties stack on top.
Read Corporate TaxHow to calculate UAE corporate tax, with worked examples
UAE corporate tax is 0% on the first AED 375,000 of taxable income and 9% on the rest. Start from accounting profit, adjust for non-deductible items and exempt income, then apply the rates. A company with AED 1 million taxable income pays 9% of AED 625,000, which is AED 56,250.
Read Corporate TaxCorporate tax return deadline and record keeping
UAE corporate tax returns are due within nine months of the end of each tax period, and any tax is paid by the same date. For a 31 December year end that means 30 September. Businesses must keep the records behind the return for seven years, and audited accounts where the law requires them.
Read AuditWho needs audited financial statements in the UAE?
Three rules decide it. Corporate tax requires audited statements from businesses with revenue above AED 50 million and from every Qualifying Free Zone Person. Most free zones require annual audits from all licensees. Mainland company law, banks and partners add their own requirements. DIFC and ADGM exempt some small companies.
Read Free ZonesFree zone audit deadlines compared
Free zone audit deadlines are shorter than the corporate tax deadline. JAFZA and DAFZA want audited statements within 90 days of the year end, DMCC within 180 days and RAKEZ within six months. The corporate tax return follows at nine months, so the audit sets the timetable for the whole year end.
Read ComplianceUAE tax penalties from 14 April 2026: what changed
From 14 April 2026, unpaid UAE tax accrues a late-payment penalty at an annualised 14%, charged monthly. Voluntary disclosures cost 1% a month on the tax difference, plus 15% if made after an audit notice. From 1 January 2026, refund claims and input VAT recovery are also limited to five years.
Read VAT & ExciseUAE VAT return deadline and late filing
UAE VAT returns and payment are due within 28 days of the end of each tax period, usually a quarter. A return for January to March is due by 28 April. Late payment now accrues at an annualised 14%, and errors are corrected through a voluntary disclosure rather than the next return in most cases.
Read Business SetupClosing a company in the UAE: the tax and audit checklist
Closing a UAE company means more than cancelling the licence. Appoint a liquidator, prepare final accounts and a liquidation audit, apply for corporate tax deregistration within three months of ceasing business and VAT deregistration within 20 business days, and settle every return and liability before the authority releases you.
Read Corporate TaxUAE transfer pricing thresholds explained
UAE businesses must keep a master file and local file if their revenue is at least AED 200 million or their group's revenue is at least AED 3.15 billion. Separately, the corporate tax return includes a disclosure of related-party transactions above AED 40 million in total. Every related-party price must still be at arm's length.
Read ComplianceUAE UBO register: who counts as a beneficial owner
UAE companies must keep a register of their ultimate beneficial owners and file it with their licensing authority. A beneficial owner is a natural person who owns or controls at least 25% of the capital or voting rights, or otherwise controls the company. Changes must be updated within the time the rules allow.
Read CompliancegoAML registration: who must register and why
Real estate brokers and agents, auditors and accountants, dealers in precious metals and stones, and corporate service providers are designated non-financial businesses in the UAE. Each must register on goAML, appoint a compliance officer, and report suspicious transactions. Failing to register can lead to Ministry of Economy and Tourism penalties.
Read Corporate TaxEconomic substance rules abolished: what still applies
UAE businesses no longer file Economic Substance notifications or reports for financial years starting on or after 1 January 2023. Cabinet Decision No. 98 of 2024 ended the regime from then and cancelled penalties for later years. Years from 2019 to 2022 remain subject to the old rules, and substance still matters for tax.
Read Corporate TaxUAE Domestic Minimum Top-up Tax explained
Since financial years starting on 1 January 2025, UAE entities of multinational groups with global revenue of at least EUR 750 million in two of the previous four years pay a Domestic Minimum Top-up Tax. It tops their UAE effective tax rate up to 15%. Returns and payment are due 15 months after the year end.
Read Corporate TaxUAE tax residency for individuals: the 183 and 90-day tests
An individual is UAE tax resident if they spend at least 183 days here in a 12-month period, or at least 90 days if they are a UAE or GCC national or UAE resident with a permanent home or job here, or if their main residence and centre of interests are here. Part days count.
Read VAT & ExciseUAE excise tax on sweetened drinks from 2026
Since 1 January 2026, UAE excise on sweetened drinks depends on sugar per 100 ml. Drinks with 8 grams or more pay AED 1.09 per litre, those with 5 to under 8 grams pay AED 0.79, and those below 5 grams or with only artificial sweeteners pay nothing. Energy drinks stay at 100%.
Read Payroll & HRHow to calculate end-of-service gratuity in the UAE
Private-sector employees in the UAE earn gratuity of 21 days' basic pay for each of the first five years of service and 30 days' basic pay for each year after that. It is calculated on the last basic wage and paid with other dues within 14 days of the end of employment.
Read Business SetupUAE merger control thresholds
A UAE deal must be notified for merger clearance when the parties' combined annual sales in the relevant UAE market exceed AED 300 million, or their combined share of that market exceeds 40%, under Cabinet Decision No. 3 of 2025. Most small deals fall below both tests, but check before signing.
Read ComplianceUAE bankruptcy law: restructuring options explained
Federal Decree-Law No. 51 of 2023, with Cabinet Resolution No. 94 of 2024 as its regulations, gives distressed UAE companies, traders and licensed civil companies several routes: out-of-court restructuring, composition, court restructuring and, as a last resort, bankruptcy and liquidation. It does not apply to private individuals.
Read AuditDubai owners association audits: what DLD requires
Jointly owned properties in Dubai must have their financial statements and service charge budgets audited by firms accredited by the Dubai Land Department. The rule comes from Law No. 6 of 2019 and DLD controls introduced in 2021. Owners can use the audit to check how service charges are spent.
Read VAT & ExciseDubai Customs voluntary disclosure explained
Dubai Customs can audit declarations for five years after clearance. Under Customs Policy No. 58/2024, an importer that discloses its own errors before an audit notice pays the duty difference and may have fines reduced or waived. The duty must be paid within 30 days of the claim, or the disclosure lapses.
Read AuditHow to choose an audit firm in the UAE
Check four things before appointing a UAE auditor: that the firm is on your free zone's approved list, that it can meet your zone and corporate tax deadlines, that it knows your sector, and that it is independent of your bookkeeping. Ask for a written scope, timetable and fixed fee.
Read Corporate TaxKey date 31 December 2029Small Business Relief now runs to 31 December 2029
UAE resident businesses with revenue of AED 3 million or less can elect Small Business Relief for tax periods ending on or before 31 December 2029, after Ministerial Decision No. 131 extended the original 2026 end date. The election treats taxable income as nil, but you must still register, keep records and file a return.
Read Free ZonesThe free zone de minimis rule, explained
A Qualifying Free Zone Person keeps its 0% rate only if non-qualifying revenue stays at or below the lower of 5% of total revenue or AED 5 million in each tax period. Breach it and the company is taxed at standard rates for that period and the next four. Non-qualifying income is taxed at 9% with no AED 375,000 band.
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