Mainland vs Free Zone in Dubai: Which Company Structure Is Right for Your Business?
One of the first and most important decisions every entrepreneur faces when starting a business…
With the introduction of UAE Corporate Tax in June 2023, the country entered a new phase of economic modernization. The objective is clear to build a sustainable, globally aligned tax framework while continuing to support business growth and international investment.
At ATAF Accounting & Tax Consultancy, we help businesses navigate this new tax environment with clarity and confidence. Whether you are a mainland company, free zone business, branch office, or an international investor, we ensure your corporate tax obligations are fully understood, accurately assessed, and strategically optimized.
Our goal is not only to keep you compliant but to structure your tax position for long-term financial efficiency.
Corporate Tax is a federal tax applied to the taxable profits of companies and legal business entities operating in the UAE.
1. UAE Companies
2. Foreign Companies
3. Individuals Engaged in Business
Free zone businesses may enjoy a 0% corporate tax rate if classified as a Qualifying Free Zone Person (QFZP).
Key Requirements for QFZP Status:
Failing any requirement may result in losing the 0% benefit and being taxed at the standard 9% rate.
The Federal Tax Authority’s web portal (EMARA Tax) facilitates online VAT registration in the UAE for obtaining the Tax Registration Number (TRN). ATAF's provides services for both VAT registration and Tax Group registration services. A business is required to seek VAT registration when its taxable supplies or imports exceeding the mandatory registration threshold of AED 375,000. Additionally, a business has the option to register for VAT voluntarily if the combined value of its taxable supplies, imports, or taxable expenses exceeds the voluntary registration threshold of AED 187,500
VAT, as a general consumption tax, is applied at 5% to all transactions of goods and services unless specifically exempted in Article 46 of the Federal Decree-Law No. (8) of 2017 on Value Added Tax or subject to a rate of 0% as per Article 45 of the Federal Decree-Law.
Every seller registered for VAT is required to issue a tax invoice when selling taxable goods or services. There are two types of tax invoice under the VAT decree, one is Simplified tax invoice and the other is full tax invoice. A simplified tax invoice can be raised by a seller if the recipient of services/goods is unregistered (B2C) or the consideration for the supply doesn’t exceed AED 10,000. A detailed invoice needs to have all the information as menitoned in the Article 59 of the Executive regulation.
The standard tax periods for VAT return are as follows:
Common challenges faced during the VAT registration process in Dubai include incomplete documentation, difficulties in navigating the online application system, and understanding specific requirements. The FTA is very specific and if the required details are not shared then it can be rejected after issuing queries. BCL Globiz can assist in overcoming these challenges by providing professional guidance, ensuring accurate documentation, and facilitating a smooth VAT registration process.
Let us manage your accounting while you focus on running your business efficiently.
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