Countries/UAE/UAE Tax & Compliance
UAE · Tax & Compliance
UAE Tax & Compliance.
Substance, structure and compliance that actually fits the business.
The UAE is no longer a zero-tax jurisdiction in the corporate sense — 9% federal corporate tax, VAT, transfer pricing and economic substance now apply. We coordinate the work through regulated tax partners, with Morifar holding the strategic and structural view.
What it is
The full picture, in plain language.
UAE tax & compliance covers corporate tax (9%, Free Zone qualifying income at 0%), VAT (5%), transfer pricing, economic substance regulations, country-by-country reporting and ongoing filings.
We are not a tax practice — we coordinate. The actual returns, opinions and rulings are issued by regulated UAE tax firms under their own letterhead.
Who it's for
Designed for these situations.
Newly incorporated UAE companies
Setting up tax registration, accounting and ongoing compliance from day one.
Free Zone companies
Where qualifying-income tests, de minimis and substance need careful sequencing.
Multinational subsidiaries
With transfer pricing, intercompany flows and CbCR exposure.
Family holding structures
Where personal, real-estate and operating-company tax positions interact.
Benefits
What the right structure delivers.
Strategic + technical layered
Strategy from Morifar, regulated technical work from licensed tax firms.
Free Zone optimisation
Qualifying-income analysis, substance design and de minimis monitoring.
Transfer pricing readiness
Local file, master file and CbCR coordination for groups above thresholds.
ESR notifications & reports
Where applicable, filed on time, every time.
Quarterly accounting hygiene
Not just year-end — books that hold up to review whenever needed.
Audit coordination
Where audit is required by licence, jurisdiction or banking.
The process
Step by step — nothing hidden, nothing skipped.
- 01
Tax position diagnostic
Weeks 1-2Current state across CIT, VAT, ESR, transfer pricing; risks and quick wins.
- 02
Registration & onboarding
Weeks 2-4FTA corporate tax registration, VAT registration where threshold met, accounting software setup.
- 03
Substance & structure review
Weeks 4-6Free Zone qualifying-income test, substance assessment, structural recommendations.
- 04
Transfer pricing & intercompany
Where relevantPolicy review, documentation, benchmarking via the tax partner.
- 05
Quarterly bookkeeping & VAT
OngoingBookkeeping, VAT returns (quarterly), management accounts.
- 06
Annual CIT return
9 months post year-endAudited (or unaudited where eligible) financials, CIT return, supporting workings.
- 07
ESR & UBO filings
AnnualNotifications and reports where the company performs relevant activities.
Timeline
What a typical engagement looks like.
Month 1
Diagnostic and registrations.
Months 1-3
Substance review, bookkeeping setup, first VAT return.
Ongoing
Quarterly cycle, annual returns, audit.
Documents required
The evidence pack we will ask for.
Trade licence & MOA
Confirms activities and qualifying-income eligibility.
Audited financials (if available)
Most recent year.
Intercompany agreements
Where parent or sister companies transact with the UAE entity.
Bank statements
For the relevant accounting period.
VAT records (sales / purchases)
For VAT-registered companies.
Costs & fees
What you should budget for.
Costs depend on transaction volume, audit requirement and group complexity.
Tax position diagnostic
From AED 12,000
Fixed-fee written report.
Quarterly bookkeeping & VAT (SMB)
From AED 2,500 / month
Annual CIT return (SMB)
From AED 8,000
Transfer pricing documentation
From AED 30,000
Issued by the regulated tax partner.
Statutory audit (where required)
From AED 12,000
Issued by the appointed audit firm.
FAQs
Questions we are asked, and the honest answers.
Do all UAE companies pay 9% corporate tax?+
No. Free Zone qualifying income remains 0% subject to substance and activity conditions; the first AED 375,000 of profit is taxed at 0%.
Is VAT mandatory?+
Mandatory above AED 375,000 in taxable supplies; voluntary from AED 187,500. Most operating companies register.
What is Economic Substance?+
A test requiring real local activity (employees, premises, decision-making) for companies performing certain relevant activities. Non-compliance carries penalties.
Do we need a UAE-licensed tax agent?+
Recommended. Filings can be made directly, but a registered tax agent provides representation in disputes and reviews.
Common mistakes
What we see go wrong — so it doesn't happen to you.
Assuming Free Zone = 0% automatically
Qualifying income tests and substance are conditions, not entitlements. Plan and document.
Late corporate tax registration
Penalties apply for late registration. Register on incorporation, not at year-end.
Books that do not reconcile
Spreadsheet bookkeeping rarely survives scrutiny. Use proper accounting software from day one.
Ignoring transfer pricing
Even SMEs with intercompany flows can fall within TP rules. Document at threshold, not after a review.
Explain like I'm 10
The simplest version of the whole thing.
The UAE has rules about how companies pay tax — small ones pay nothing on the first chunk of profit, bigger ones pay 9%, and there are sales-tax (VAT) rules too. We make sure the right paperwork gets filed at the right time so nothing goes wrong.
Related services
Private consultation
Discuss uae tax & compliance with the team.
A confidential first conversation — no obligation, no sales pitch. We listen, map your situation, and tell you honestly whether and how we can help.
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