Services

VAT & Corporate Tax

Federal Tax Authority headquarters in Dubai with the UAE flag and Burj Khalifa behind

Corporate Tax and VAT — from registration to filing — for free zone (QFZP), mainland and international groups. We register you, file your VAT and annual Corporate Tax returns, prepare Transfer Pricing documents (Local File, Master File, TP Disclosure Form), represent you in front of the FTA, put together Voluntary Disclosures when something needs fixing, and handle Pillar Two / DMTT for the larger groups.

Tax is the part founders underestimate most — and the one with the sharpest penalties. UAE Corporate Tax is a young and rapidly evolving regime — introduced only in June 2023, with the Executive Regulations on Tax Procedures updated as recently as 1 April 2026 under Cabinet Decision No. 17 of 2026, and a new administrative penalty framework effective 14 April 2026 under Cabinet Decision No. 129 of 2025. Enforcement practice is still being shaped, while penalties have already become severe: AED 10,000 for failure to maintain proper records (rising to AED 20,000 for repeat violations within 24 months), and late-payment interest of 14% per annum on outstanding tax.

Record retention obligations differ by tax type and have been formally extended: under the UAE Corporate Tax Law, all records must be kept for 7 years; under VAT, the standard period is 5 years. In both cases, Cabinet Decision No. 17 of 2026 (effective 1 April 2026) adds an additional 2 years where a refund application is still pending FTA decision. The same Cabinet Decision also introduced a new AED 10,000 Voluntary Disclosure threshold: errors exceeding AED 10,000 must now be disclosed to the FTA within 20 business days of discovery — there is no longer any discretion to simply correct them in the next return.

Before you set up a new company or sign off on a transaction, we’d strongly suggest auditing the tax model first and getting a written Tax Opinion before structuring any new entity or transaction. The Tax Opinion validates the client’s assumptions on tax burden, free zone qualification (QFZP status), and intercompany flows — protecting against the much heavier downstream cost of restructuring under FTA scrutiny. Penalties for errors identified by an FTA audit run at 15% of the tax differential plus 1% per month until assessment; the same error voluntarily disclosed before audit costs only 1% per month — the maths for getting it right from the start speaks for itself.

Larger businesses and groups carry a much heavier reporting load. UAE taxpayers with annual revenue of AED 200 million or more, or those that are part of a Multinational Enterprise group with consolidated global revenue of AED 3.15 billion or more, must maintain a Local File and Master File under Ministerial Decision No. 97 of 2023, produced to the FTA within 30 days of request. Related Party and Connected Person disclosures apply in the annual return; transactions with Connected Persons require disclosure above AED 500,000.

The very largest groups — MNEs with consolidated global revenue from EUR 750 million — fall under the new UAE Domestic Minimum Top-Up Tax (DMTT) regime effective from 1 January 2025, guaranteeing a 15% minimum effective rate under OECD Pillar Two. What the right approach looks like changes a lot depending on your turnover, your group structure, your sector and your free zone status — and that is precisely the analysis we perform for each client.

Request a Tax Opinion
  • VAT Registration & Filing
  • Corporate Tax Registration & Returns
  • Corporate Tax Planning
  • Tax Opinion & Model Audit
  • FTA Representation
  • Voluntary Disclosure Support
  • Transfer Pricing Documentation & Reporting
  • Related Party & Connected Person Disclosures
  • Pillar Two / DMTT Compliance

Insights & Blog

UAE Business & Legal Intelligence

All Articles
A magnifying glass on a blue document folder and a fountain pen on a marble desk, representing tax audit and supplier due diligence procedures

VAT & Tax

From 1 October 2026, a Tax Invoice alone will nolonger support input tax recovery

The Federal Tax Authority (FTA) has issued Decision No. (13) of 2026. It was approved by the FTA Board of Directors on 23 June, issued on 22 July, and comes into effect on 1 October 2026. The Decision sets out how Article 54 bis of the VAT Law — introduced by Federal Decree-Law No. (16) […]

Corporate tax, VAT compliance, FTA updates and practical filing guides for UAE businesses.

MDL Advisers FZCO · August 2026

DIFC Will and estate planning documents with scales of justice in the UAE

Legal & Estate Planning

Why Every Expat in the UAE Needs a DIFC Will

You’ve lived in Dubai for a few years now. You built a career, saved money, maybe bought an apartment, maybe opened a company. All of it for your family. There’s one question almost nobody asks in advance: what happens to all of it if something happens to you? Most people don’t know. Their wives, husbands […]

Emirald Legal · August 2026

AE Corporate Tax 2026 rates, QFZP rules, penalties and compliance requirements

VAT & Tax

UAE Corporate Tax 2026: Rates, QFZP, Penalties & New Rules

UAE Corporate Tax arrived in June 2023, but 2026 is the year it gets real. This is the first time the full compliance cycle is running at full scale: returns are being filed, the FTA has started auditing, and the whole penalty framework has just been overhauled. If you’ve been putting off a proper look […]

Corporate tax, VAT compliance, FTA updates and practical filing guides for UAE businesses.

MDL Advisers FZCO · August 2026

FAQ

Questions people usually ask us

How much does it cost to set up a company in DMCC or other UAE free zones?

It depends on the zone and the licence. A DMCC licence starts at around AED 20,285 a year. Cheaper zones like IFZA, RAKEZ and AFZ can start at roughly AED 12,000–15,000. DIFC and ADGM cost more, but they're the ones to look at if you need financial-services activities. Your final number comes down to the office you choose, how many visas you need, your activity, and any approvals that activity requires. We'll give you one all-in figure at the first meeting — no surprises later.

What is QFZP status under UAE Corporate Tax, and how does my free zone company qualify?

QFZP status is what lets a free zone company pay 0% Corporate Tax on its qualifying income — but only if it ticks every box: real substance in the UAE, income from the right sources, proper Transfer Pricing, and non-qualifying income kept under the limit (the lower of AED 5 million or 5% of revenue). Go over that limit and the 0% disappears — all your income is taxed at 9%. Because the stakes are that high, we'd strongly suggest getting a written Tax Opinion to confirm your position before you file your first return.

Which UAE free zone is best for my business — DMCC, IFZA, JAFZA, DIFC or ADGM?

There's no single "best" one — it depends on what you do, who your clients are, your tax position and your budget. DMCC works well for commodities, trading, crypto and services. IFZA is easy on the budget for small businesses and consultants. JAFZA is the choice for logistics, industry and import-export. DIFC and ADGM are common-law financial centres — the right call for financial firms, family offices and holding structures that need international legal certainty. We'll walk you through the options that actually fit your plans.

Do I need to register for UAE Corporate Tax if my company is in a free zone?

Yes — and this catches a lot of people out. Every UAE company, free zone included, has to register with the FTA and file a Corporate Tax return every year. That holds even if you're on the 0% QFZP rate or made nothing taxable. Your registration deadline is tied to when your licence was issued, and registering late costs AED 10,000. The return itself is due within nine months of your financial year-end.

How long does company formation in Dubai or the UAE take?

Once your documents are ready, most free zone companies are set up in one to three weeks. A mainland LLC usually takes two to four. DMCC and IFZA can be done entirely online, even from abroad. DIFC and ADGM take longer — four to eight weeks — because of the extra regulatory review. Then budget another two to six weeks for the bank account. We take care of the paperwork, the government back-and-forth, the lease and the attestations from start to finish.

Can foreign nationals own 100% of a UAE company?

Yes. Free zone companies have always allowed 100% foreign ownership, and since the 2021 changes to the Commercial Companies Law, most mainland activities do too — no local Emirati partner needed. The exceptions are a short list of strategic sectors like oil & gas and certain security and utilities activities. We'll confirm exactly where your activity stands when we pick the jurisdiction together.

Can you help me open a corporate bank account in the UAE?

Yes — and it's often the hardest part of the whole process. UAE banks run strict KYC, and applications get stuck or rejected over small things: an unclear business model, a missing document, a UBO mismatch. We prepare the file the way banks expect, introduce you to the right bank for your profile, and stay involved until the account is open.

What is the UAE Golden Visa and who qualifies?

It's a 10-year UAE residence visa that you hold in your own right — no employer sponsor — and you can bring your family. There are now more than 15 ways to qualify: investors, entrepreneurs, scientists, doctors, engineers, IT and AI specialists, artists, athletes, executives, top students, humanitarian figures, and newer categories like nurses, teachers, content creators, e-sports players and Waqf donors. You can either apply directly (meeting an investment or salary threshold) or be nominated by a body like ICP, GDRFA, ADRO, the Emirates Scientists Council or Dubai Health. We'll tell you which route is yours.

Do all UAE companies need their accounts audited?

Not all — but more than people think. Some free zones (like DMCC and DIFC) require an annual audit by an approved auditor regardless of size, and certain Corporate Tax positions trigger one too. Even where it isn't mandatory, banks often ask for audited financials. We keep your books to IFRS year-round and match you to the right licensed auditor when one is needed.

Do you handle wills and asset protection for expats?

Yes — through our sister firm, Emirald Legal Consultants. They draft and register DIFC Wills so your UAE assets pass under common law rather than default Sharia rules, and they handle holding structures, family foundations and Powers of Attorney for asset protection. It's all managed alongside your corporate setup, so nothing falls through the gap between "company" and "personal".

What does MDL Advisers actually do, and how is it different from a generic business setup agent?

Most setup agents register your company and then move on. We don't. We hold three UAE licences in one group — corporate services, accounting, and executive search — so we stay with you well past day one: picking the jurisdiction, forming the company, introducing you to banks, keeping your books and payroll, handling Corporate Tax and VAT, preparing Transfer Pricing files, lining up your audit, and even hiring your senior people. Same team, same partners, the whole way through. More than 1,000 clients have worked with us since 2015.

Our Team

International team with local expertise

Our people have built careers both internationally and on the ground in the UAE, and we deal with the authorities — the FTA, Dubai's DET, Abu Dhabi's ADDED, DMCC, IFZA, JAFZA, DIFC, ADGM, RAK ICC and AFZ — every working day. Under one roof we have specialists in corporate law, accounting, UAE tax, immigration and executive search, and we work with clients in English, Russian, Arabic, Spanish and Portuguese.

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Company
MDL Advisers FZCO
Address
34th Floor, Swiss Tower Jumeirah Lakes Towers,
Cluster Y Dubai, UAE · P.O. Box 309057
Business Hours
Monday – Friday
10:00 AM – 6:00 PM