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RBROYAL BRIDGEServices · Abu Dhabi

VAT and Corporate Tax: What Small Businesses in the UAE Must Know

Registration thresholds, deadlines and common mistakes — a practical overview of VAT and Corporate Tax for small and growing businesses.

Banking & Tax

2 min read

Team Royal Bridge

Tax compliance is now part of running any business in the UAE. Missing a registration or filing deadline can lead to penalties from the Federal Tax Authority (FTA), even for small companies.

VAT registration

Businesses whose taxable supplies exceed the mandatory threshold (AED 375,000 a year) must register for VAT and obtain a Tax Registration Number (TRN). Businesses below that level may be able to register voluntarily.

Corporate Tax

UAE Corporate Tax applies to most businesses, with a 9% rate on taxable profit above AED 375,000. Registration is required even if your profit is below that level, and freezone businesses need to check whether they qualify for special treatment.

Common mistakes to avoid

  • Registering late
  • Missing VAT return deadlines
  • Poor record-keeping of invoices and expenses
  • Assuming a freezone company needs no registration

This article is general guidance, not legal advice. Government requirements and fees change from time to time — contact us to confirm the latest rules for your case.

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