Accounting services in Dubai

No, family-owned businesses are treated like any other legal entities. If structured properly, they can still benefit from tax exemptions, group relief, and loss carryforward. Succession planning and documentation are important to maintain tax compliance and continuity. Tax advisors can help structure family businesses for long-term efficiency.

There are no specific startup exemptions, but if your income is below AED 375,000, no tax is payable even though registration is required. Some free zone startups may qualify for 0% tax under qualifying activity conditions. You must still file returns and maintain compliance. Structuring your business wisely from the start can maximize benefits.

Salaries paid to owners or shareholders who also work in the business may be deductible if they are reasonable and justified. However, distributions or dividends are not deductible. Documentation such as contracts and payment records must support the salary expense. Misclassifying distributions as salaries can lead to tax penalties.

Yes, businesses can carry forward tax losses to offset future profits.

Audited statements are not yet mandatory for all, but they are highly recommended.

Yes, even businesses with income below the threshold must register, though they may not owe any tax.

Related party transactions must follow the arm’s length principle and be properly documented. Disclosure forms and possibly transfer pricing documentation must be filed. Inaccurate reporting or failure to maintain documentation can lead to adjustments or penalties. Transparency is key when dealing with intercompany transactions.

Taxable income is calculated by taking your net accounting profit and adjusting it for tax-exempt income, non-deductible expenses, and tax losses carried forward. Certain income like dividends or capital gains may be excluded if conditions are met. The resulting figure is taxed at the applicable rate (typically 9% over AED 375,000). Accurate financial reporting and professional accounting are essential for correct tax computation.

International income, such as income from foreign subsidiaries, may be taxed unless an exemption applies. The UAE applies the “Participation Exemption” for qualifying foreign shareholdings. Double tax treaties can also reduce or eliminate foreign tax exposure. Careful planning helps avoid double taxation and ensures compliance in all jurisdictions involved.

Corporate tax is applied on net profit, not revenue.

Foreign income is generally included in taxable income unless specifically exempt

Taxable income includes profits from business activities after deducting allowable expenses.

The UAE corporate tax rate is 9% on taxable income exceeding AED 375,000.

GAAR allows tax authorities to disregard transactions or structures aimed solely at avoiding tax without genuine business substance. Even if actions are legally structured, they may be recharacterized if lacking economic intent. Businesses must ensure their operations reflect real commercial activity. Aggressive tax planning without substance increases audit risk.

All UAE-registered companies, including those with full foreign ownership, are subject to corporate tax on their UAE-sourced income. However, foreign entities operating without a permanent establishment may be exempt. The law applies uniformly, ensuring fair treatment across ownership types. Proper tax structuring can help foreign businesses remain compliant while optimizing global tax exposure.

Investment holding companies are subject to corporate tax but may benefit from exemptions on qualifying dividends and capital gains. They must meet substance requirements and proper ownership structures to qualify. Tax planning is critical when using UAE entities for holding international assets or shares. Consult a tax advisor to ensure the correct structure.

Penalties may include fixed fines, a percentage of unpaid tax, and daily interest. Late filings, failure to register, or inaccurate reporting are all penalized under Federal Tax Authority (FTA) guidelines. Keeping accurate records and meeting deadlines is the best way to avoid fines. Working with a tax consultant can ensure timely and accurate submissions.

Corporate tax applies to all businesses and commercial activities, except those exempt (like oil extraction or government entities).

Tax returns must be filed within 9 months from the end of your financial year.

Free zone companies meeting substance and compliance requirements may qualify for exemption; also, personal income is not taxed.

Yes, cloud accounting is widely accepted and often preferred for efficiency.

Yes, we assist with selecting and setting up accounting systems tailored to your needs.

It’s recommended for better compliance and local regulation knowledge.

Not always, but financials are essential for tax, audit, and bank requirements.

Yes, companies are legally required to keep financial records for at least 5 years.

Product-based businesses need inventory accounting, while service firms focus on time-based billing and expense tracking.

Monthly reconciliation is best practice to catch errors, prevent fraud, and ensure cash flow accuracy.

Ideally monthly, to ensure compliance and better financial control.

Yes, even individual license holders must keep proper books, especially for tax and compliance purposes.

For many SMEs, outsourcing is more cost-effective and ensures expert handling.

Yes, many accounting firms handle payroll, WPS compliance, and employee records.

International Financial Reporting Standards (IFRS) are commonly used.

Mistakes include ignoring VAT, not tracking expenses, missing deadlines, and mixing business and personal finances.

Failure to keep accurate records can lead to penalties, compliance issues, and rejection of tax filings or bank audits.

Profit & Loss Statement, Balance Sheet, Cash Flow Statement, and Accounts Receivable/Payable aging reports.

Recording transactions, preparing ledgers, reconciling accounts, and generating reports.

Yes, transactions between related companies are generally subject to VAT unless both entities are part of an approved VAT group. The VAT group allows them to transact without charging VAT between them. However, external transactions must still follow standard VAT rules. Proper documentation is crucial for group status.

Generally, exports of services outside the GCC are zero-rated

Yes, if you’re VAT registered and the expenses are eligible.

Yes, you may apply for deregistration if your taxable supplies fall below AED 187,500 in the past 12 months. Approval is subject to FTA review, and all outstanding returns and payments must be cleared first. VAT deregistration can help small businesses reduce compliance burdens. Be sure to plan this carefully to avoid disruption.

Yes, if you’re VAT-registered, you can reclaim input VAT on eligible expenses directly related to your taxable business activities. Expenses must be supported with valid tax invoices and recorded properly in your VAT return. Non-business or mixed-use expenses must be carefully apportioned. Reclaiming VAT improves cash flow when managed accurately.

Services provided to customers outside the GCC are usually zero-rated, but this requires proof of location and usage. If the customer is in the UAE or GCC and VAT-registered, reverse charge rules may apply. Misclassification can lead to fines, so confirm the customer’s status before invoicing. Accurate invoicing ensures compliance and protects your cash flow.

You must register if your taxable supplies and imports exceed AED 375,000 over the past 12 months or are expected to in the next 30 days. This includes revenue from goods, services, and even certain intra-GCC transactions. It’s essential to monitor your revenue regularly. Voluntary registration is also available from AED 187,500.

Most businesses file quarterly VAT returns, but some high-volume businesses are assigned monthly filing by the FTA. Returns must be submitted and paid within 28 days after the tax period ends. Delays lead to automatic penalties and interest. It’s best to maintain monthly books to avoid last-minute stress.

Usually quarterly, depending on your assigned VAT period.

Commercial properties are subject to VAT, residential ones are mostly exempt or zero-rated.

Yes, unless they are in a designated zone and meet specific conditions.

Yes, if goods are given away for free (without consideration), VAT may still apply as a deemed supply. Exceptions exist for samples or gifts under a certain value threshold. Proper documentation and tracking are essential for such transactions. Always consult your accountant before running large promotional campaigns.

Goods and services sold or imported in the UAE are generally taxable.

Incorrect invoices can lead to penalties, denied input VAT claims, and reconciliation issues during audits. Invoices must contain specific details such as TRN, date, tax amount, and itemized descriptions. Using accounting software with VAT compliance features helps reduce errors. Regular reviews of issued invoices are highly recommended.

Penalties include fines, interest on unpaid tax, and potential business suspension.

The reverse charge mechanism shifts the responsibility of VAT payment from the supplier to the recipient of goods or services. It applies mainly to imported services and certain goods transactions. The recipient accounts for both input and output VAT in their return. This simplifies cross-border compliance but requires accurate accounting.

The standard VAT rate is 5%.

Invoices, tax filings, accounting books, and import/export documents.

Penalties include fines for late registration, incorrect returns, delayed payments, or failure to maintain records. The fines can be fixed or percentage-based depending on the violation. Repeat offenses result in escalating penalties. Staying compliant requires timely filings and accurate documentation.

Businesses with taxable supplies exceeding AED 375,000 annually must register.

Yes, in most sectors after the 2021 legal reforms.

Yes, there are no restrictions on international business for mainland companies.

Yes, business owners and employees are eligible for visas.

Only for specific professional licenses; it’s no longer mandatory for general business.

Yes, mainland companies are subject to the 9% corporate tax.

Usually between 1–2 weeks, depending on document readiness.

Yes, physical office space is required for company registration.

Access to UAE markets, no limits on client base, and full UAE business operations.

A company licensed by the Department of Economic Development (DED), allowing trade across the UAE.

No minimum capital is currently required for most license types.

Yes, Dubai hosts many industry-focused zones such as Dubai Internet City (technology), Dubai Design District (creative sector), and JAFZA (logistics). These zones provide tailored infrastructure, business support, and networking for specific industries. Choosing the right zone can give your business a strategic advantage. Licensing costs, setup procedures, and visa quotas vary between zones, so selection should align with your business model.

Free zone companies can open UAE corporate bank accounts, but documentation requirements may be stricter than for mainland firms. Banks may request proof of office space, business plans, and trade history. Some banks prefer mainland or long-established free zone entities, especially for high-risk sectors. Partnering with a professional firm can help streamline account opening.

Yes, but you cannot sell directly to customers in the mainland without a local distributor or third-party logistics provider licensed in the mainland. Alternatively, you can establish a branch in the mainland under the same ownership. Free zone licenses often include e-commerce as an activity, but operational restrictions apply. Always ensure that your logistics and tax setup complies with UAE laws to avoid penalties.

Free zone entities can own property only in designated freehold areas approved for foreign ownership. They may also invest through offshore structures or by setting up a mainland subsidiary. It’s important to check the specific regulations of the free zone and the Dubai Land Department. Consulting legal and tax advisors ensures the structure supports your investment goals and tax efficiency.

No, unless using a local distributor or opening a mainland branch.

Yes, foreign investors can fully own a free zone company.

Yes, most banks in the UAE allow this, but requirements vary.

Yes, most free zones allow multiple activities under one license, provided they fall under related categories. For example, trading and consultancy may require separate license segments, or even dual licensing. It’s cost-effective to group complementary services under one entity, but you must comply with free zone rules and activity approvals. Always consult with the free zone authority when adding new services.

Yes, depending on the size and type of your office package.

Most free zones allow you to change your license activity, upgrade your office, or add business activities, but processes and fees differ. You’ll usually need to submit a formal request, update your Memorandum of Association (MOA), and meet space or staff requirements. It’s important to ensure your business activity is properly reflected to avoid issues with banks, auditors, or regulators. It’s advisable to plan your structure carefully from the start to minimize changes later.

Yes, unless they only transact within designated zones and meet all conditions.

Yes, at least a flexi-desk or virtual office is usually required.

To maintain 0% corporate tax, free zone companies must demonstrate real economic activity within the zone. This includes having physical premises, local employees, and actual operations aligned with licensed activities. Failure to meet substance rules may lead to loss of preferential tax treatment. The UAE Corporate Tax Law enforces this through audits and documentation reviews.

Usually 5–10 working days, depending on the free zone authority.

Yes, but qualifying companies may remain at 0% if they meet substance and activity requirements.

Free zone companies must renew their trade license annually, which includes paying a renewal fee and providing updated documents. Some zones also require updated tenancy contracts and visa renewals. Failure to renew can result in penalties, license suspension, or legal consequences. Keeping track of renewal deadlines is essential for continuous operation and compliance with immigration and regulatory authorities.

DMCC, Dubai Internet City, Dubai South, and JAFZA.

A special economic area offering tax exemptions, full foreign ownership, and business-friendly regulations.

Designated free zones are special VAT zones that offer certain tax benefits, particularly VAT exemptions on specific transactions. These zones are treated as being outside the UAE for VAT purposes under specific conditions. Non-designated free zones are subject to standard VAT regulations. Choosing the right type of zone affects your tax planning and compliance obligations. It’s crucial to understand how this classification impacts your import/export and intra-group transactions.

A flexi-desk is a shared office space ideal for startups, with limited usage hours and lower visa quotas. A physical office provides dedicated space and higher credibility, often required for certain activities. Warehouses cater to logistics and manufacturing businesses and may include loading docks and storage areas. The facility type impacts your business license, visa eligibility, and operational permissions.

Yes, if they conduct transactions with related parties.

Yes, financial arrangements between related parties must be at market rates.

Yes, UAE transfer pricing is aligned with OECD standards.

Annually, or whenever there is a significant change in business operations.

Yes, under the UAE corporate tax law, related party transactions must follow arm’s length principles.

A local file, master file, and disclosure form may be required depending on revenue thresholds.

Non-compliance can lead to penalties and tax adjustments by authorities.

It means transactions must be priced as if they were between unrelated parties.

It refers to pricing of goods or services between related companies in different tax jurisdictions.

All businesses engaging in transactions with related parties or connected persons.