Tax advisory in Dubai.
Forming a company in Dubai does not, on its own, provide a tax advantage. We determine the rules that apply to you in respect of corporate tax, VAT and tax residency, and we put the registration and filing calendar together with you.
- Corporate tax and VAT are handled by the same team
- Accounting and tax since 1996
Dubai Tax Framework.
Corporate tax is calculated on net profit. No tax arises on the first AED 375,000; above that, the 9% rate applies.
Corporate tax by profitUse the slider to set your annual net profit.
- 0% band
- AED 375,000
- 9% band
- AED 375,000
- Estimated tax
- AED 33,750
- Effective rate
- 4.5%
- 0%Up to AED 375,000
The first band of taxable income.
- 9%Above AED 375,000
Free zone companies are included.
- 5%VAT
Registration is mandatory if annual supplies exceed AED 375,000.
- NonePersonal income tax
Not levied in the UAE on salaries and dividends.
Service Scope and Limits.
Registration, filing and assessment are handled under one roof. Monthly records are kept by our accounting team; the two services proceed together.
Corporate tax registration
Registration with the tax authority within three months of formation.
Corporate tax return
Filing and payment within nine months of the end of the period.
VAT registration and returns
Threshold monitoring, registration application and quarterly returns.
Tax compliance service
We notify you in writing of the rule that applies to your activity and monitor compliance throughout the year.
Small Business Relief
For companies whose income does not exceed AED 3 million, this option is assessed each period.
Company and personal tax residency
The tax residency of the company and your own are assessed together.
Outside the scope
- Monthly bookkeeping (under the accounting service)
- Independent audit report
- Your personal tax return in your country of residence
- Any guarantee of the tax outcome
Annual Tax Calendar.
Dates are set according to the company's financial year. The ring below takes as its example a company whose financial year closes in December.
- Corporate tax return and paymentSeptember
- VAT return and paymentJanuary, April, July, October
- 3 months
Corporate tax registration
Made within three months of formation.
Late registration: AED 10,000
- 9 months
Corporate tax return
From the end of the period; payment within the same period.
Late filing: from AED 500 a month
- 30 days
VAT registration
Application within thirty days of exceeding the threshold.
Late registration: AED 10,000
- 28 days
VAT return
Filing and payment by the 28th day after the quarterly period.
Late filing: AED 1,000
Shareholders' Tax Position by Country of Residence.
The company's tax arises in Dubai, while your personal tax arises in the country where you are resident. Obtaining a residence permit does not automatically end tax residency in another country.
- Your companyIn Dubai0% / 9%
Profit is taxed here first: 0% on the first AED 375,000, 9% above.
- If you live in DubaiIn the UAENo personal taxor
No personal income tax is levied on salaries and dividends.
- If you live in another countryIn your country of residenceDeclaration
The rules of your country of residence apply; dividends may need to be declared there.
Details
- A residence permit does not end tax residency
Holding a residence permit or an Emirates ID does not, on its own, end tax residency in another country.
- Managing the company from your country of residence
A company whose activities are effectively managed from another country may also be treated as a taxpayer in that country.
- Personal opinion
Personal tax opinions are not given; the position in the two countries is assessed together in the consultation.
Common Mistakes and Their Penalties.
Most penalties may arise not from the tax owed but from late registration and filing.
Assuming the 0% rate applies automatically in a free zone
Free zone companies also register and file; the 0% rate depends on strict conditions.
- AED 10,000
Delaying registration
Corporate tax registration is made within three months of formation.
- From AED 500 a month
Not filing in a loss-making period
Even where no tax arises, the company files a return every period.
- AED 10,000
Not monitoring the VAT threshold
When supplies over the last 12 months exceed AED 375,000, an application is required within 30 days.
- 14% a year
Paying tax late
A late payment penalty applies every month on the unpaid amount.
Assuming residence ends tax residency
An Emirates ID does not, on its own, end tax residency in another country.
Accumulation of Penalties on a Late Return
Corporate tax return, total penalty by length of delay.
- AED 5001 month
- AED 3,0006 months
- AED 6,00012 months
- AED 12,00018 months
Our Working Method.
The process is carried out in four steps; the first step is a consultation.
Assessing the activity
Your line of business and types of income are reviewed.
Establishing tax compliance
Which income falls under which rule is notified in writing.
Registration and filing calendar
The registration and filing calendar is put together with our accounting team.
Follow-up during the year
The assessment is renewed when the activity or structure changes.
Tax-Related Services.
Frequently Asked Questions.
The accounting service keeps the records and prepares the basis for the return. Corporate tax registration, preparing and submitting the return, and specific tax advisory work are not included in the monthly accounting fee; they are carried out separately.
This is not a guarantee. The 0% rate applies only to the qualifying income of a company that meets the necessary conditions; the remaining income is taxed under the standard rule. No rate is stated until your situation has been assessed.
Yes. Even where no tax arises, the company registers for corporate tax and files a return every period. The return is filed within nine months of the end of the period.
It is mandatory when your taxable supplies exceeded AED 375,000 over the last 12 months, or are expected to do so within the next 30 days. Voluntary registration is possible above AED 187,500.
Companies whose income does not exceed AED 3 million may, if they meet the conditions, benefit from the treatment under which no taxable income is deemed to arise for the period concerned. The registration and filing obligations continue. Under the regulation currently in force, it covers periods ending up to the end of 2029.
It does not end it automatically. Holding a residence permit or an Emirates ID does not, on its own, end residency in another country; the position in both countries is assessed together.
No. No personal income tax is levied in the UAE on salaries and dividends. If you remain resident in another country, the rules of that country apply separately.
Because the scope varies from company to company, no fixed price is stated; the service fee is notified in writing after the consultation.