The UAE tax landscape has transformed significantly with the introduction of Value Added Tax (VAT) in 2018 and Corporate Tax in 2023. Businesses must understand these laws to remain compliant and avoid penalties.

Understanding VAT in the UAE

• Standard VAT rate: 5%.
• Applies to most goods and services.
• Mandatory registration once turnover exceeds AED 375,000.

Common services: registration, returns, refunds, and audit assistance.

Corporate Tax in the UAE

Introduced in June 2023 at 9% for profits above AED 375,000. Free Zone companies may enjoy exemptions. Businesses must maintain audited statements to file returns.

Compliance is essential to avoid penalties and optimize tax liabilities.