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.