logo
Kobe Steel plant that supplied

Tax & Business in the UAE: What Every Company Should Know

  • Author: Unipal Advisor
  • Published On: Sep 04, 2025 10:13
  • Category: news

The UAE continues to attract global businesses with its strategic location, modern infrastructure, and evolving tax framework. While the country was once known for its tax-free reputation, recent reforms have introduced structured taxation that balances competitiveness with compliance.

๐Ÿ“Š Corporate Tax: A New Era

As of June 2023, the UAE implemented a federal corporate tax system:

  • 9% tax on net profits exceeding AED 375,000
  • 0% tax for profits below that threshold
  • Free zone companies may remain exempt if they meet qualifying conditions

This shift aligns the UAE with global standards while maintaining its appeal to investors and entrepreneurs.

๐Ÿงพ VAT & Compliance

Introduced in 2018, Value Added Tax (VAT) is set at 5% and applies to most goods and services. Companies must:

  • Register if annual taxable supplies exceed AED 375,000
  • File VAT returns quarterly or monthly
  • Maintain proper accounting records

Non-compliance can lead to penalties, so professional guidance is essential.

๐Ÿ—๏ธ Why Tax Planning Matters

Effective tax planning helps companies:

  • Avoid unexpected liabilities
  • Optimize cash flow
  • Stay compliant with evolving regulations
  • Build trust with stakeholders and regulators

At Unipal Advisors, we help businesses navigate these complexities with clarity and confidence.

๐Ÿ’ก Our Approach

We combine:

  • Local expertise in UAE regulations
  • Global best practices in tax strategy
  • Ethical consulting that puts transparency first

Whether you're launching a startup or restructuring an enterprise, our advisors ensure your tax strategy supports long-term growth.