UAE Tax Compliance and Advisory Services – Ensuring Legal and Financial Efficiency

Tax Compliance & Advisory in UAE – A Strategic Guide

The United Arab Emirates has undergone a major transformation in its tax landscape since the announcement of federal corporate tax (CT) in December 2021, effective from June 1, 2023 . This marked a significant shift for a country historically known for its zero-income-tax environment.

For businesses—both local and international—understanding and adhering to new tax compliance obligations is now essential. Equally important is engaging tax advisory services to ensure not only compliance but also strategic financial planning , risk mitigation , and long-term profitability .

Understanding UAE Tax Compliance Requirements

Under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses , most companies operating in the UAE are subject to corporate tax at a standard rate of 9% on taxable income exceeding AED 375,000 . Companies earning AED 375,000 or less are taxed at 0% .

Who Must Comply?

UAE mainland and free zone companies (except qualifying income in certain free zones)
Branches of foreign companies operating in the UAE
Individuals conducting business activities generating taxable income (in some cases)

Key Compliance Obligations Include:

Requirement	Description
Tax Registration	Mandatory registration with theFederal Tax Authority (FTA)if liable to corporate tax.
Maintaining Records	Keeping accurate accounting records and supporting documents for at leastseven years.
Filing Tax Returns	Submitting an annual tax return withinnine monthsafter the end of the financial year.
Tax Payments	Settling due tax liabilities by the deadline set by the FTA.
Transfer Pricing Documentation	Required for related-party transactions exceeding specified thresholds.
Economic Substance Regulations (ESR) Reporting	Separate requirement for UAE free zone entities.

Why Tax Advisory Services Are Crucial in the UAE

With the implementation of corporate tax , VAT (5%) , excise tax , and ongoing changes in international tax standards , relying on expert guidance is more important than ever.