Your AI accountant for United Arab Emirates.

UAE Corporate Tax

UAE Corporate Tax is the federal tax on business profits introduced by Federal Decree-Law No. 47 of 2022, effective 1 June 2023. It applies a 0% rate on the first AED 375,000 of taxable income and 9% above. Qualifying Free Zone Persons can pay 0% on Qualifying Income. Multinational groups within Pillar Two scope face a 15% Domestic Minimum Top-up Tax from 1 January 2025.

UAE VAT

UAE VAT is a 5% federal tax on most goods and services, introduced 1 January 2018. Mandatory registration at AED 375,000 annual turnover; voluntary at AED 187,500. Standard rate 5%; some supplies are zero-rated (exports, healthcare, education) or exempt (residential rent, financial services, local passenger transport).

TRN (Tax Registration Number)

The Tax Registration Number is the 15-digit identifier issued by the FTA to every VAT-registered business and Corporate Tax-registered entity. It must appear on tax invoices and FTA correspondence.

QFZP (Qualifying Free Zone Person)

A Qualifying Free Zone Person is a Free Zone entity that meets specific tests under the UAE Corporate Tax law to retain the 0% rate on Qualifying Income. Tests include: substance (people and assets in the Free Zone), audited financial statements, transfer pricing compliance, de minimis non-qualifying revenue (≤5% or AED 5m).

Free Zone (UAE)

UAE Free Zones are special economic zones offering 100% foreign ownership, customs benefits, and (subject to QFZP rules) preferential 0% Corporate Tax on Qualifying Income. There are 40+ Free Zones across the seven emirates, each with their own Authority and licensing rules.

FZCO (Free Zone Company)

An FZCO is a Free Zone Company with multiple shareholders (typically 2 or more, depending on the Free Zone Authority). It is a separate legal entity with limited liability, registered with a specific UAE Free Zone Authority. Common form for founder-led businesses with co-founders.

Yes — office rent, flexi-desk fees and co-working memberships used for the business are fully deductible against UAE Corporate Tax. Free Zone flexi-desk packages bundled with the trade license are typically deductible as part of the licensing fee.

Yes — trade license issuance and annual renewal fees are deductible against Corporate Tax. This includes the Free Zone licensing fees, mainland DED fees, and any chamber of commerce subscriptions.

Yes — employee salaries paid to UAE-licensed staff are fully deductible against Corporate Tax. Note: there is no UAE personal income tax. WPS (Wage Protection System) compliance is mandatory for all UAE employers.

Partially — UAE Corporate Tax law restricts the deduction for entertainment expenditure to 50% of the amount incurred. This applies to meals, accommodation, transportation and similar entertainment of clients, customers, suppliers and other business associates.

Yes — fees paid to accountants, legal advisors, tax consultants, auditors and other professionals for the business are fully deductible against Corporate Tax.

Yes — SaaS subscriptions used in the business are fully deductible against Corporate Tax. VAT recoverable on UAE-supplied software at 5%; reverse charge applies to non-UAE supplied digital services.