UAE VAT
VAT at 5% — since January 2018
Every transaction needs correct VAT treatment: standard rated (5%), zero rated (exports, international transport), exempt (residential property, bare land, local passenger transport), or out of scope. Wrong treatment means incorrect VAT returns and FTA penalties. Input tax recovery depends on correct classification from day one.
Filing: Quarterly / Monthly · Regulator: FTA
UAE CORPORATE TAX
CT at 9% — since June 2023
9% corporate tax on taxable income above AED 375,000. Applies to mainland and most free zone entities unless they qualify as a Qualifying Free Zone Person (QFZP). CT requires IFRS-compliant accounting, correct tax period identification, and separate tracking of exempt and non-exempt income. First CT returns are now due.
Annual return · Regulator: FTA · Rate: 9%
WPS PAYROLL
Wages Protection System — mandatory
All private sector employers in the UAE must pay salaries through WPS — a government system monitoring salary payments via approved channels. Non-compliance results in labour permit suspension. WPS requires a SIF (Salary Information File) generated from payroll each month. Gratuity (end-of-service benefit) must be provisioned monthly under UAE Labour Law.
Monthly · Regulator: MOHRE · Mandatory