UAE VAT & Corporate Tax Compliance Support

The introduction of Corporate Tax in June 2023 fundamentally changed the UAE tax landscape. Combined with the established 5% VAT regime, businesses now face a dual-tax compliance environment requiring specialist knowledge, careful planning and robust record-keeping. MKonnect Global's Tax & Compliance practice helps UAE businesses navigate both regimes confidently — from registration and structuring through to monthly/quarterly filing and regulatory interaction.

Our tax professionals have deep expertise in UAE VAT law, the Corporate Tax Law (Federal Decree-Law No. 47 of 2022), and the associated Cabinet and Ministerial Decisions that continue to develop the detailed guidance. We work with businesses across mainland UAE, all major free zones, and for cross-border transactions involving GCC and international counterparties.

Beyond compliance documentation, we provide compliance support advisory — helping businesses understand their obligations, take advantage of Small Business Relief, qualifying income exemptions and free zone tax regimes, and coordinate with appropriately registered tax professionals for formal tax opinions and regulated tax advice.

UAE VAT & Corporate Tax Compliance Support

What's Included

Comprehensive tax & compliance services for UAE and GCC businesses

UAE VAT Compliance

VAT registration, return preparation and filing, input tax recovery, VAT audit support and FTA correspondence management — ensuring complete accuracy and full input tax recovery across all business activities.

Corporate Tax Compliance Support

UAE Corporate Tax registration, taxable income computation support, filing coordination and payment management — together with compliance advisory to support UAE businesses and corporate groups in meeting their obligations.

Free Zone Tax Advisory

Specialist advisory on Qualifying Free Zone Person (QFZP) status, qualifying income determination, and the conditions that must be maintained to benefit from the 0% corporate tax rate available to qualifying free zone businesses.

Transfer Pricing

Transfer pricing documentation, benchmarking studies and related-party disclosure statements — ensuring UAE businesses with cross-border intercompany transactions meet their transfer pricing obligations under the Corporate Tax Law.

FTA Audit Coordination Support

Preparation support and coordination during FTA tax audits and investigations — helping businesses organise documentation, manage FTA interactions, and coordinate voluntary disclosures or formal reconsideration processes through appropriately registered tax professionals.

Tax Health Checks

Comprehensive review of VAT and corporate tax position to identify errors, over/under-payments and compliance gaps — providing businesses with confidence in their historical compliance position and recommendations for improvement.

Our Approach

A proven, structured methodology that delivers measurable outcomes

Register & Structure

We support the FTA registration process for VAT and Corporate Tax, advise on group registration opportunities, and review the optimal structure for your operations to ensure you are positioned correctly from day one.

Prepare & File

Our team supports the preparation of VAT returns and corporate tax computations based on your accounting data — reviewing transactions for correct treatment, coordinating input tax recovery, and assisting with timely filing every period.

Plan & Optimise

We review your tax position proactively to identify planning opportunities — from Small Business Relief eligibility and free zone QFZP status to group relief, exempt income elections and structuring of major transactions.

Respond & Resolve

When the FTA raises queries, conducts audits or issues assessments, our team assists with the preparation and coordination of responses — organising supporting documentation and liaising with appropriately registered tax professionals for formal representation where required.

Business Benefits

Zero Penalty Risk

Professionally prepared and filed returns eliminate the risk of FTA penalties for errors, late filing and under-declaration — which can reach 50% of unpaid tax plus AED 10,000-50,000 fixed penalties.

Optimised Tax Position

Expert planning ensures UAE businesses benefit from every available relief — Small Business Relief, QFZP status, exempt income, participation exemption and group relief — minimising tax cost within the law.

Audit Readiness

Systematic documentation, transaction review and record-keeping practices mean clients are always prepared for an FTA audit — with all supporting evidence organised and defensible positions documented.

Who It's For

UAE SMEs & Mid-Market

Businesses lacking in-house tax expertise seeking reliable outsourced VAT and corporate tax compliance — ensuring obligations are met without the cost of a full-time tax professional.

Free Zone Businesses

Companies operating in UAE free zones — DIFC, ADGM, Meydan, JAFZA and others — needing specialist advisory on QFZP status, qualifying income and the conditions for maintaining the 0% corporate tax rate.

Corporate Groups & Multinationals

Groups with UAE entities requiring transfer pricing documentation, related-party disclosures, tax group registration and consolidated corporate tax strategy across multiple UAE legal entities.

Frequently Asked Questions

What is the UAE Corporate Tax rate and when did it start?

The UAE Corporate Tax (CT) came into effect for financial years beginning on or after 1 June 2023. The standard rate is 9% on taxable income above AED 375,000. Income up to AED 375,000 is taxed at 0%. Small Business Relief is available for businesses with revenue not exceeding AED 3 million in the relevant and previous tax periods (for tax periods up to 31 December 2026), effectively exempting qualifying small businesses from CT. Qualifying Free Zone Persons (QFZPs) that maintain the required substance and derive qualifying income can benefit from a 0% rate on qualifying income.

Which businesses need to register for UAE Corporate Tax?

All UAE juridical persons (including companies, free zone entities, and partnerships) and foreign juridical persons with a permanent establishment or taxable nexus in the UAE are required to register for Corporate Tax. Natural persons conducting business activities above the AED 1 million annual revenue threshold must also register. The FTA has published mandatory registration deadlines based on licence issuance dates. MKonnect Global helps businesses assess their registration obligation and manages the registration process with the FTA.

What is a Qualifying Free Zone Person (QFZP) under UAE Corporate Tax?

A Qualifying Free Zone Person is a free zone entity that meets certain conditions to benefit from a 0% corporate tax rate on its qualifying income. The conditions include: maintaining adequate substance in the free zone; deriving qualifying income (income from transactions with other free zone persons or from qualifying activities as defined in the regulations); not electing to be subject to standard corporate tax; and complying with transfer pricing rules. Income that does not qualify is taxed at the standard 9% rate. The QFZP regime is complex and requires careful planning and ongoing monitoring to maintain.

How does UAE VAT apply to free zone businesses?

VAT treatment of free zone transactions depends on the type of free zone. Designated Zones (DNs) — a subset of free zones officially designated by the FTA — have special VAT treatment for goods, allowing certain supplies to be treated as outside the scope of VAT when goods remain within a DN or move between DNs. Services within free zones are generally subject to standard UAE VAT rules. Non-Designated Zone free zones follow standard VAT rules. The interaction of VAT and Corporate Tax for free zone businesses is an area requiring specialist advice, particularly for businesses with both DN and non-DN operations.

What are the penalties for late VAT filing or underpayment in the UAE?

FTA penalties for VAT non-compliance are significant. Late registration carries a fixed penalty of AED 20,000. Late filing attracts an AED 1,000 penalty for the first offence (AED 2,000 for subsequent offences within 24 months). Late payment penalties start at 2% of unpaid tax immediately, rising to 4% per month. Tax evasion penalties can reach 5x the amount of evaded tax. Voluntary disclosure of errors reduces penalties but must be made proactively before the FTA initiates an audit. Proactive compliance management with expert support is far less expensive than dealing with FTA penalties.

UAE Tax & Compliance Advisory