UAE Corporate Tax and Financial Compliance – A Practical Guide for Businesses
The introduction of a federal Corporate Tax (CT) in the UAE marked a historic shift in the country’s economic landscape. Together with existing VAT regulations and strict Anti‑Money Laundering (AML) rules, businesses must now navigate a complex compliance environment. ALHEKMA Legal Consultancy provides a clear, practical overview of the key requirements and how to meet them.
1. Corporate Tax – Who Is Affected?
The CT regime applies to all UAE businesses, except those engaged in the extraction of natural resources (which remain subject to emirate‑level taxation). The standard rate is 9% on taxable profits exceeding AED 375,000. Free zone companies may qualify for a 0% rate if they meet specific substance and compliance criteria. We help you determine your exact tax position and file returns on time. Learn more about our regulatory compliance services →
2. VAT Compliance and Filing
Value Added Tax (VAT) at 5% applies to most goods and services. Registration is mandatory if your annual taxable supplies exceed AED 375,000, and voluntary if above AED 187,500. Timely filing of periodic returns is crucial; late submissions attract heavy fines. Our team can manage your VAT accounting and liaise with the Federal Tax Authority (FTA) on your behalf.
3. FTA Audits – How to Prepare
The FTA conducts regular audits to verify compliance. Being unprepared can lead to significant penalties. We conduct pre‑audit reviews, help correct any discrepancies, and represent you during the audit process. Prevention is always cheaper than cure.
4. Anti‑Money Laundering (AML) and Counter‑Terrorism Financing (CTF)
Under Federal Decree‑Law No. 20 of 2018, certain businesses (including real estate, legal services, and corporate service providers) must implement robust AML/CTF programmes. This includes customer due diligence, record‑keeping, and reporting suspicious transactions. Our compliance experts can design and implement a framework that satisfies all regulatory requirements. Read about AML obligations →
Don’t let tax complexities put your business at risk. Book a free consultation with ALHEKMA Legal Consultancy and let our experts ensure your company stays compliant and penalty‑free.