Introduction to UAE’s Evolving Tax Landscape
The UAE, long known for its tax-free advantage, has taken significant strides towards economic diversification and regulatory maturity. One of the most pivotal changes is the introduction of Corporate Tax and the implementation of VAT (Value Added Tax).
Businesses operating in the UAE, whether onshore or free zone-based, must now comply with specific corporate tax regulations and VAT frameworks. This comprehensive guide, brought to you by Rewind Consultancy, walks you through every detail of Corporate Tax Registration in UAE and VAT Registration in Dubai, ensuring your business remains compliant and future-ready.
Let’s dive into the world of tax compliance in the UAE and decode what you need to do in 2025.
Corporate Tax in UAE: An Overview for 2025
Why Was Corporate Tax Introduced?
The UAE introduced corporate tax to:
- Align with international tax standards like BEPS and OECD guidelines
- Promote transparency
- Diversify national revenue beyond oil
- Strengthen the economy’s global image
Effective from June 1, 2023, businesses earning profits above AED 375,000 are subject to a 9% corporate tax rate.
Who Needs to Register for Corporate Tax?
All UAE-registered entities and individuals conducting business activities, including:
- Mainland companies
- Free zone entities (depending on qualifying status)
- Foreign companies with UAE branches
- Sole establishments (if conducting business regularly)
Corporate Tax Exemptions
Some entities are exempt from corporate tax:
- Government and government-controlled entities
- Public and regulated pension or investment funds
- Businesses engaged in natural resource extraction (already taxed at emirate level)
Corporate Tax vs VAT: A Quick Comparison
| Tax Type | Rate | Threshold | Purpose |
| Corporate Tax | 9% | AED 375,000 | Profit-based taxation |
| VAT | 5% | AED 375,000 | Consumption-based taxation |
Steps to Register for Corporate Tax in UAE
1. Prepare Required Documents
Ensure these documents are ready:
- Trade License
- Emirates ID & Passport copies of owners
- Financial statements
- Entity legal structure documents
- Valid email and contact details
2. Access the EmaraTax Portal
The Federal Tax Authority (FTA) manages corporate tax registration via the EmaraTax platform.
- Visit EmaraTax
- Create or log in to your user account
3. Submit Corporate Tax Registration Application
You’ll need to:
- Fill in business details
- Upload documents
- Declare your taxable income status
Once submitted, you’ll receive a Corporate Tax Registration Number if approved.
4. Stay Compliant Post Registration
- Maintain accounting records for 7 years
- Submit annual corporate tax returns
- Pay tax dues within 9 months of financial year-end
Pro Tip: Hire a tax consultant like Rewind Consultancy to ensure zero errors in filing.
Understanding VAT Registration in Dubai: Requirements & Procedure
VAT in Dubai – Key Facts
VAT was implemented in the UAE on January 1, 2018, at a rate of 5%. It’s an indirect tax applicable on:
- Goods and services
- Imports
- Certain digital services
Who Should Register for VAT in Dubai?
VAT registration is mandatory for:
- Businesses with taxable supplies exceeding AED 375,000/year
- Voluntary for businesses above AED 187,500/year
This applies to:
- Traders
- E-commerce platforms
- Construction firms
- Service providers
Documents Required for VAT Registration
- Trade License copy
- Emirates ID/passport of business owner
- Bank account details
- Turnover proof for the past 12 months
- Custom registration details (if applicable)
Process for VAT Registration in Dubai
- Login to FTA Portal
https://eservices.tax.gov.ae - Create Account or Use Existing Login
- Submit VAT Registration Form
Include business activities, turnover, and supply details. - Receive TRN (Tax Registration Number)
Upon approval, you get a TRN that must be used in all tax invoices.
Importance of Timely Registration for Corporate Tax & VAT
Avoid Hefty Penalties
Late corporate tax registration: AED 10,000 fine
Late VAT registration: AED 10,000 fine
Filing delays, errors, or evasion can invite additional administrative penalties
Build Trust & Compliance
Enhances your business’s credibility with partners and clients
Demonstrates legal and financial transparency
Eligibility for Refunds and Credit Claims
Proper VAT registration enables businesses to claim input VAT
Tax-registered entities can benefit from double taxation avoidance agreements
Rewind Consultancy: Your Tax Compliance Partner in the UAE
Why Choose Rewind Consultancy?
Experienced Team: Tax experts well-versed in UAE laws
Customized Solutions: Tailored tax planning and registration support
Full-Service: From document prep to filing and post-registration compliance
Trustworthy Guidance: Avoid errors, penalties, and compliance gaps
Our Tax Services Include:
Corporate Tax Registration in UAE
VAT Registration in Dubai
Financial and tax advisory
EmaraTax and FTA filing assistance
Recordkeeping and audit support
Common Mistakes to Avoid During Registration
1. Using Outdated Trade Licenses
Always upload a valid and renewed trade license.
2. Inaccurate Financial Reporting
Misstated revenues can lead to rejection or penalties.
3. Ignoring Threshold Criteria
Even if your business is currently under the threshold, regular monitoring is crucial for timely voluntary registration.
4. DIY Approach Without Expertise
Tax laws are nuanced. Engage experts like Rewind Consultancy to ensure accurate registration and compliance.
FAQs – Corporate Tax & VAT Registration in UAE and Dubai
Q1. Is corporate tax mandatory for all UAE businesses?
Answer: Yes, all businesses earning above AED 375,000 annually must register unless exempt under UAE Corporate Tax Law.
Q2. Can free zone companies avoid corporate tax?
Answer: Qualifying free zone companies may continue to enjoy tax benefits, provided they meet criteria set by the FTA.
Q3. How long does it take to get a corporate tax registration number?
Answer: Once documents are submitted correctly, it typically takes 1-2 weeks for approval and issuance.
Q4. What is the penalty for not registering VAT in Dubai?
Answer: Failing to register VAT when required attracts a penalty of AED 10,000.
Q5. Can I register voluntarily for VAT if under the threshold?
Answer: Yes, any business exceeding AED 187,500 in revenue can register voluntarily to benefit from input VAT recovery.
Q6. Is Rewind Consultancy approved by the FTA?
Answer: Rewind Consultancy is a trusted service provider with deep expertise in UAE tax systems and regularly works with FTA regulations.
Final Thoughts: Stay Compliant, Stay Ahead
The landscape of tax compliance in the UAE is no longer optional—it’s essential. Whether you’re a startup, SME, or a well-established enterprise, registering for Corporate Tax and VAT is your gateway to legal business operations in the country.
With Rewind Consultancy by your side, you don’t just ensure compliance—you gain a strategic partner who helps you minimize tax liability, avoid penalties, and stay prepared for future regulatory changes.
