Business

Corporate tax and VAT: the basics for small businesses

The two UAE taxes every founder should understand, explained without the jargon.

6 min read2 Oct 2026Beginner
Gulf Policy Souq Editorial TeamUpdated 2 Oct 2026 · UAE personal finance
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Reading time6 minutes
Key takeaways3 to remember

01Corporate tax

UAE corporate tax is 0% on taxable profit up to AED 375,000 and 9% above that. Most businesses need to register with the Federal Tax Authority even if they pay 0%.

02VAT

VAT is charged at 5% on most goods and services. Registration is mandatory once taxable supplies pass AED 375,000 in 12 months, and voluntary from AED 187,500.

Corporate tax: 0% up to AED 375,000, then 9%.KEY POINT

03Why your bank account matters

Keeping business money in a separate business account makes records, VAT returns and audits far easier.

04Get help when needed

Rules and deadlines change. A registered tax agent can help you stay compliant.

Try it yourself

Corporate tax & VAT estimator

A quick estimate of corporate tax and your VAT registration status. Figures are examples — use your own numbers.

Key takeaways

What to remember

The three points that matter most from this guide.

01

Corporate tax: 0% up to AED 375,000, then 9%.

02

VAT is 5%, with registration at AED 375,000.

03

Keep business and personal money separate.

Corporate TaxUAE tax on business profits: 0% on taxable income up to AED 375,000 and 9% above that.VATValue Added Tax — a 5% tax on most goods and services in the UAE. Businesses register once taxable supplies pass AED 375,000 a year.TRNTax Registration Number — the number the FTA gives a business registered for VAT or corporate tax.FTAFederal Tax Authority — the UAE government body that manages VAT and corporate tax.
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General information only, not financial advice. Rules and bank terms can change — always confirm with your provider.

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