Corporate Tax
What is the UAE Corporate Tax rate?
A 9% rate applies to taxable income above the threshold set by the Ministry of Finance, with income below that threshold taxed at 0%. Free Zone entities meeting Qualifying Free Zone Person conditions may access a 0% rate on qualifying income instead. Rates and thresholds are set by government decision and should always be confirmed as current before you rely on them.
Do Free Zone companies pay Corporate Tax?
They must register regardless, but may qualify for a 0% rate on qualifying income if they meet the Qualifying Free Zone Person conditions, including maintaining adequate substance in the zone. Income outside that definition is taxed at the standard rate, so the position needs assessing rather than assumed. See our Corporate Tax Advisory service for how we assess this.
When do I need to register for Corporate Tax?
It depends on your trade licence issue date or incorporation date, not your financial year end. We cover the exact mechanics, including a full deadline table, in our article on Corporate Tax registration deadlines.
What is Small Business Relief?
It allows an eligible business below a set revenue threshold to be treated as having no taxable income for a tax period. It is not automatic — it must be elected in the return, and eligibility is reassessed every period, so a business can qualify one year and not the next.
What happens if I register late?
The FTA applies an administrative penalty of AED 10,000 for late registration, on top of the requirement to register. If you have already missed your deadline, the priority is registering immediately rather than delaying further — the penalty does not increase the longer you wait, but the exposure does.
VAT
When do I need to register for VAT?
Registration is generally required once your taxable supplies cross the mandatory threshold over a rolling 12-month period, with voluntary registration available below that. The right approach depends on your revenue pattern and forecast, which we assess as part of onboarding.
How often do I file VAT returns?
Most businesses file quarterly, though the FTA assigns some taxpayers a monthly period based on turnover. Your assigned period is confirmed on registration.
Can I recover VAT paid on business expenses?
On most, but not all. Certain categories — including some entertainment costs and vehicles available for personal use — are specifically blocked from recovery, and expenses relating to both taxable and exempt supplies are only partly recoverable. This is one of the most common sources of avoidable error we see.
What is a VAT health check?
A structured review of your VAT treatment, invoicing and filing history against FTA requirements, designed to catch errors before an FTA audit does rather than after. It is one of the most cost-effective ways to reduce penalty exposure. See our VAT Services for details.
Accounting & Bookkeeping
Do I need monthly bookkeeping if my accountant only files annually?
Annual filing still requires accurate, complete records — the question is whether those records are built up monthly or reconstructed under pressure at year end. Monthly bookkeeping also gives you management information you can actually use during the year, not just after it.
Can you take over from our existing bookkeeper mid-year?
Yes. We manage the handover directly, including obtaining prior records and reconciling opening balances, and it is easiest to start before your year end closes rather than after.
Do you handle payroll and WPS compliance?
Yes, payroll processing and Wage Protection System compliance are part of our Accounting & Bookkeeping service, alongside monthly reconciliation and management reporting.
Working With Nexorya
Are your fees fixed?
Yes. Fees are agreed in writing before work begins, based on the scope of your engagement. We tell you specifically what would trigger any change to that fee.
Will I have one point of contact?
Yes. Every client is assigned a named specialist who owns the relationship, scope and compliance calendar from onboarding onward.
Can you represent us directly with the FTA?
Yes. As a registered tax agency, our agents correspond with and represent clients directly before the Federal Tax Authority.
How quickly do you respond to enquiries?
Enquiries submitted through this site are answered within one business day.
Still Have a Question?
If your situation is not covered above, tell us your entity type and what you need — we will give you a straight answer, not a generic one.