Corporate Tax & VAT Registration
Concerned about Corporate Tax in the UAE?
Let Bizventure guide you through the registration process and help you with tax planning in Dubai. Our trusted consultants will ensure your business remains fully compliant while maximizing your tax benefits.
What is Corporate Tax in UAE?
Corporate tax is a federal income tax applied to businesses earning more than AED 375,000 in taxable income annually. The tax regulations differ between mainland and free zone companies, making it crucial to understand the nuances of each.
Even if you’re not liable to pay corporate tax, you may still need to register for it and file returns under specific circumstances. Expert support is essential to ensure your business complies with all federal corporate tax requirements in Dubai.
How to Register for Corporate Tax - UAE
If your business is subject to corporate tax, you must register with the Federal Tax Authority (FTA) and obtain a Tax Registration Number (TRN) within the designated timeframe. If your business becomes exempt from corporate tax, you’ll need to deregister within three months after closing your business or halting business activities. Our team at Bizventure is here to guide you through both the registration and deregistration processes, ensuring a smooth experience.
Entities Exempt from UAE Corporate Tax
Certain entities are exempt from the UAE corporate tax, including the UAE Federal Government, Emirates Governments, and related bodies. Companies engaged in specific activities—such as charities, social security funds, retirement pension funds, and certain investment funds—are also exempt from corporate tax. These exemptions are outlined in Cabinet Decisions and Emirate-level tax regulations, and Bizventure helps you navigate these intricacies to determine if your business qualifies for exemption.
Corporate Tax in Free Zones
Businesses registered in UAE free zones enjoy tax exemptions, provided they meet regulatory requirements and avoid conducting business on the mainland. However, free zone businesses are still required to register and file corporate tax returns. Bizventure’s expert tax consultants ensure that you meet all the necessary criteria, allowing you to take full advantage of these tax benefits while staying compliant.
Applicable Corporate Tax Rate in UAE
According to the Ministry of Finance (MOF), the corporate tax rate is 0% on taxable income up to AED 375,000. For businesses with taxable income exceeding AED 375,000, a 9% tax rate applies.
What is VAT in UAE?
VAT registration not only enhances your business credibility but is also required for certain businesses to avoid penalties. With a TRN (Tax Registration Number), you can legally collect VAT on your transactions. At Bizventure, our VAT experts, with in-depth knowledge of FTA guidelines, ensure you have a seamless experience throughout the registration process and beyond.
Types of VAT Registration
Mandatory VAT Registration:
If your business has annual taxable income exceeding AED 375,000 VAT registration is mandatory. This enables you to collect VAT legally on your transactions. Bizventure will help you meet all the necessary requirements for mandatory VAT registration, making the process hasslefree.
Voluntary VAT Registration:
If your business’s annual turnover falls between AED 187,500 and AED 375,000 you may opt for voluntary VAT registration. This provides your business with a TRN and the opportunity to recover input tax. At Bizventure, we’ll help assess whether voluntary VAT registration is the right choice for your company.
Stay compliant, minimise tax - Register today!
Navigating the complexities of UAE corporate tax can be overwhelming. Bizventure guides you through the registration process and helps you with tax planning in Dubai. Our trusted consultants will ensure your business remains fully compliant while maximizing your tax benefits.