Accounting and tax in the UAE

Corporate Tax applies at 9% on profits above AED 375,000, with 0% below that threshold. Being below it does not exempt you from registering or filing: they are two separate obligations.

It depends on your turnover and the type of activity, and there are thresholds for mandatory and voluntary registration. We review it at incorporation so that you are not late.

Almost always, and the sooner it is addressed, the cheaper it is. The outstanding financial years are reconstructed, the records are regularised and the calendar is put in order from there.

Yes. The company does not need to have been set up with us. We start with a review of the actual state of compliance, which is usually different from what the client believed it to be.

No. We handle the UAE side. If you keep ties or tax residency in Spain, your adviser there continues to handle that side, and the sensible thing is for the two to talk to each other.

The 0% band covers the first AED 375,000 of profit; above that, 9% applies. There are also specific regimes, such as Small Business Relief and the Qualifying Free Zone Person regime, each with its own requirements that must be met and maintained. Being below the threshold does not exempt you from registering or filing.

Yes. The obligation to keep accounts and retain records does not depend on how much you invoice, and it applies regardless of whether you end up paying 0% Corporate Tax. It is the most expensive mistake we see: properly incorporated companies that did not keep accounts in their first financial year.

There are penalties for late filing and for failure to register, and they accumulate. The sooner an overdue situation is addressed, the cheaper it is to regularise.

Yes. The outstanding financial years are reconstructed, the records are regularised and the calendar is put in order from there. And if there is already an open information request, we prepare the supporting documentation and handle communication with the Federal Tax Authority.

Depending on the case and the jurisdiction, yes. Each Gulf country has its own accounting and tax rules, so the scope is defined before we start and is not taken for granted.

Juridical persons subject to the Corporate Tax regime must register within the deadlines set by the FTA. Free Zone Persons must also register, even if they expect to benefit from the 0% rate on Qualifying Income. The specific deadline depends on the date and form of incorporation, so we review it individually.

A company must keep adequate accounting records and, for Corporate Tax purposes, have sufficient financial information to determine its taxable income. Whether financial statements must be submitted or filed with a specific authority depends on the jurisdiction, the type of entity and the applicable requirements.

It depends. Some free zones, licences, sectors, banks or structures require audited financial statements; in other cases it is not mandatory. Before commissioning an audit, we confirm the requirement with the jurisdiction and how the statements will be used.

Yes, there are penalties for tax non-compliance, but the amount depends on the type of violation: late registration, late filing, late payment, errors, failure to keep records, etc. In addition, the UAE penalty regime was amended with effect from April 2026. That is why I would not publish a single figure; we review the specific violation against the FTA penalty table currently in force.

Yes. We handle accounting and compliance for free zone and mainland companies. What matters is reviewing their activity, VAT obligations, Corporate Tax and the specific requirements of the jurisdiction.

Usually the trade licence and corporate documents, bank statements, issued and received invoices, contracts, expenses, payroll if any, tax registrations and any previous accounting. If we are taking over from another provider, we also ask for the trial balance, ledgers and the returns already filed.