The United Arab Emirates implemented a value-added tax (VAT) system in 2018. Businesses must register for VAT if they exceed or anticipate to exceed the AED 375,000 threshold within a 12-month period. Failing to register for VAT when liable can result in penalties and other legal consequences. This guide explains VAT registration eligibility, steps to register, and what happens after approval.
A step-by-step guide to legally appoint a registered tax agency on the Federal Tax Authority portal in the UAE. Learn how to add an authorized tax professional to your account to assist with tax compliance, returns, payments, audits, and other critical tax matters.
The United Arab Emirates (UAE) implemented corporate tax in June 2023, requiring businesses to register and comply with the new regulations. This registration process can seem daunting, especially for those new to the UAE tax system. To simplify things, This article guides you through the process of registering for corporate tax on the EmaraTax portal, the official platform for tax administration in the UAE.
If you already have an account with the FTA, your existing FTA account login details will have automatically been transferred to EmaraTax. Your only task? Simply reset your password when logging in for the first time.
Our step-by-step guide makes the process simple. Get started today!
Wondering about the start and end dates for your first Quarterly VAT filing period? Worry not!
In this article, we shed light on how the Federal Tax Authority (FTA) determines your first VAT period, making it easier for you to stay compliant with VAT regulations.
Yes, in the United Arab Emirates the export of services is considered to be Zero Rated, which means that they are still subject to taxation but at a rate of 0%. Consequently, when determining your VAT registration threshold, these export services are included in the calculation.
No, exempt supplies within the United Arab Emirates do not contribute to the VAT registration threshold.
While VAT applies to most goods and services, exempt supplies which are specific goods or services that are not subject to VAT are not included when calculating the VAT registration threshold.
It's crucial to understand the factors that determine your VAT taxable turnover for both voluntary and mandatory VAT registration thresholds. These factors include the value of Standard Rated Taxable Supplies, Zero-Rated Supplies, Reverse Charge Items, and Imports subject to Import VAT. Remember, exempt supplies are not included in the calculation.
The businesses on the mainland, free zone companies, and overseas entities need to pay Corporation tax in the UAE. Uncover exemptions for government entities, specific industries, charitable organizations, and non-profit entities, while understanding the conditions for a 0% tax rate for Free Zone companies.
It is important to note that Free Zone companies are not exempt from corporation tax in the UAE, but they may qualify for a 0% tax rate. This is an important distinction as all Free Zone companies be required to register for corporation tax with the Federal Tax Authority (FTA) and file returns at least annually.
Simply put - Yes and no:
There is no income tax on a person’s salary, wages, bank interest, dividends, or capital gains in Dubai, however, from June 2023 corporation tax was introduced
If a company has a taxable profit of 400,000 AED, the calculation will be (375,000 AED x 0%) + (25,000 AED x 9%) giving a tax bill for the period of 2,250 AED.
Most jurisdictions now restrict or disallow client entertainment expenses, and the UAE is no exception to this. When you take a client out for dinner or drinks, or even paying for a joint golfing trip, this is client entertainment. You can indeed pay for this type of expense via the business, and it is still legitimate to do so.
The information provided on this site is for general guidance purposes only and may change based on updates to UAE laws and regulations.
It should not be construed as financial, accounting, auditing, or legal advice, nor relied upon as the sole basis for making financial or compliance decisions.
We recommend seeking specific professional advice tailored to your individual circumstances.
Theta7 is a trading name of THETA 7 Accounting & Bookkeeping L.L.C, an authorised and licensed accounting firm under the Ministry of Economy and the Federal Tax Authority of the United Arab Emirates.
Audit services are provided exclusively through AuditCo Times Auditors L.L.C, a licensed audit firm operating under the Theta7 Group.
