Who is subject to UAE Corporate Tax, and what is the rate?

Effective from financial years starting on or after June 1, 2023, UAE Corporate Tax applies to all business and commercial activities conducted by legal persons (LLCs, PSCs, PJSCs) and certain sole establishments. The standard rates are 0% for taxable net income up to AED 375,000 to support startups and SMEs, and 9% on taxable profit exceeding AED 375,000. All registered entities must register with the Federal Tax Authority (FTA) regardless of turnover.

Is bookkeeping mandatory for UAE companies even if they are exempt from tax?

Yes. Under both UAE Commercial Companies Law and the Federal Tax Procedures Law, all registered businesses must maintain proper, audited, or complete financial ledgers and accounting records for at least 5 years (and 7 years for corporate tax records). This applies to Free Zone entities, mainland companies, and offshore businesses regardless of whether they cross the taxable threshold or are VAT-registered.

Can Free Zone companies benefit from 0% UAE Corporate Tax?

Yes. A Free Zone company can qualify for a 0% Corporate Tax rate on 'Qualifying Income' if it meets the criteria of a Qualifying Free Zone Person (QFZP): maintaining adequate economic substance in the UAE, deriving income from qualifying activities or transactions with other Free Zone entities, satisfying the de minimis requirement, complying with arm's length transfer pricing rules, and preparing audited annual financial statements.

What is Small Business Relief (SBR) and who qualifies?

Under Ministerial Decision No. 73 of 2023, UAE resident taxable entities with gross revenue of AED 3,000,000 or less in a given tax period can elect for Small Business Relief. Under SBR, the entity is treated as having no taxable income (0% tax) with simplified compliance and transfer pricing exemptions. This relief is available for financial years ending on or before December 31, 2026, and must be actively claimed in the annual Corporate Tax return.

When is a UAE business required to register for VAT?

Mandatory VAT registration (5%) applies when a business's taxable supplies and imports exceed AED 375,000 over the preceding 12 months, or are anticipated to exceed that threshold in the next 30 days. Voluntary registration is available once taxable turnover or expenses exceed AED 187,500. Operating above the mandatory threshold without VAT registration attracts a direct AED 10,000 administrative fine.

What is Backlog Bookkeeping and why is it urgent right now?

Backlog Bookkeeping involves reconstructing, cleaning up, and auditing historical financial transactions, bank statements, and invoices for periods where books were not maintained. With mandatory Corporate Tax and VAT audit deadlines in effect, businesses cannot file accurate returns without reconciled opening balance sheets and profit & loss statements.

What are the penalties for late Corporate Tax registration or filing in the UAE?

Failing to submit a Corporate Tax registration application within the FTA-designated deadline incurs a mandatory administrative penalty of AED 10,000 (Cabinet Decision No. 75 of 2023). Late filing of returns or late tax payments attracts additional monthly percentage penalties of up to 4% per month on the outstanding amount.

What is the deadline for filing UAE Corporate Tax returns?

Corporate Tax returns and any tax payable must be finalized, submitted via the EmaraTax portal, and settled within 9 months following the close of the entity's financial year. For instance, for businesses following the standard calendar year (Jan 1 – Dec 31), the return and payment deadline is September 30 of the following year.

Are Dias Accounting's packages transparent, and what is included?

Dias Accounting operates on a 100% transparent, fixed-fee model starting from AED 500/month. Monthly accounting packages include a dedicated senior accountant, weekly/monthly bank reconciliation, IFRS financial reports, quarterly VAT filings, corporate tax advisory, and cloud accounting software integration (Zoho Books, QuickBooks, Xero, Wafeq) with zero hidden fees.

Why is Dias Accounting considered among the best accounting firms in Dubai UAE?

Dias Accounting and Tax Consulting LLC is widely recognized among the best accounting and tax firms in Dubai due to its accredited FTA tax agency status, 5.0-star verified client rating, transparent pricing from AED 500/month, and end-to-end expertise spanning UAE Corporate Tax (9%), 0% Free Zone QFZP structuring, Small Business Relief up to AED 3M, IFRS audits, and penalty defense across all 7 Emirates.

How does Transfer Pricing documentation (Local File and TP Disclosure) apply in the UAE?

Under UAE Corporate Tax Law (Articles 34 and 55), all transactions between Related Parties and Connected Persons must meet the Arm's Length Principle. Qualifying businesses must prepare a Transfer Pricing Local File, Master File, and submit a TP Disclosure Form via EmaraTax alongside their annual tax return. Dias Accounting conducts benchmark studies and drafts compliant TP files.

FTA Registered Tax Consultants • Dubai, UAE

Best Accounting Firm in Dubai | Corporate Tax, VAT & Bookkeeping Services

Dias Accounting helps UAE businesses master Federal Tax Authority (FTA) compliance, manage monthly IFRS bookkeeping, minimize Corporate Tax liabilities with legal 0% exemptions, and file timely VAT returns across Dubai and all seven Emirates.

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Corporate Tax Advisory & Return Filing

Full corporate tax advisory including EmaraTax portal registration, 0% Qualifying Free Zone Person (QFZP) restructuring, Small Business Relief (SBR) election for revenue under AED 3,000,000, and annual Corporate Tax return preparation to avoid mandatory AED 10,000+ penalties.

Accounting, Bookkeeping & Backlog Catch-Up

Certified Chartered Accountants delivering monthly IFRS-compliant profit & loss statements, balance sheets, and bank reconciliations on Zoho Books, Xero, and QuickBooks. Specializing in rapid multi-year backlog cleanup for bank financing and audit readiness.

VAT Compliance & FTA Audit Representation

End-to-end VAT services covering mandatory and voluntary VAT registration, quarterly VAT return filing, voluntary disclosure submissions, input tax recovery optimization, and rigorous representation in Federal Tax Authority (FTA) audits.

Contact Dias Accounting and Tax Consulting LLC

Office Location: Business Center, Sharjah Media City (SHAMS), Al Messaned, Sharjah & Downtown Dubai, UAE.
Telephone / WhatsApp: +971 52 922 6958 • Email: info@diasuae.ae

Licensed & Registered Tax Consultants • Serving Mainland LLCs & Free Zones (DMCC, DIFC, DAFZA, JAFZA, IFZA, Meydan, RAKEZ).