VAT on Commercial Property in the UAE: Everything Investors Need to Know
21/07/2025
YOUNG AND RIGHT ACCOUNTING & TAX CONSULTANCY
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In the ever-evolving regulatory landscape of the UAE, the introduction of Corporate Tax has marked a pivotal shift for businesses. Enforced under the UAE Corporate Tax Law, this framework reflects the country's commitment to global standards of transparency, compliance, and economic sustainability. Whether you are an established enterprise or just starting out, understanding and completing your Corporate Tax Registration is now a mandatory step for all taxable persons operating in Dubai and across the UAE.
All businesses that meet the taxable income threshold are required to register with the Federal Tax Authority (FTA) and obtain a Tax Registration Number (TRN). The tax registration process can initially appear complex, particularly for SMEs and startups, but with proper guidance, such as from experienced advisors like Young & Right, the corporate tax registration process can be completed efficiently and with full compliance.
Navigating the intricacies of UAE Corporate Tax Registration involves understanding the definitions and obligations outlined in the UAE Corporate Tax Laws, including who qualifies as a taxable person, the types of taxable income covered, and how to align your operations with the latest tax registration requirements.
With the right support, your business can not only stay compliant but also optimize its tax position within the framework of the new corporate tax regime in Dubai and the UAE.
Corporate Tax (CT) in the UAE is a federal tax imposed on the taxable income of legal persons and natural persons conducting business activities within the UAE. Introduced under Federal Decree-Law No. 47 of 2022, this tax regime represents a transformative shift in the nation’s legal structure, aligning with international standards and advancing the UAE’s goal of fostering a diversified, transparent, and knowledge-based economy.
Under the UAE’s corporate tax laws, the standard corporate tax rate is 9% on annual taxable income exceeding AED 375,000. Businesses with profits below this threshold are exempt—primarily to support startups, SMEs, and emerging free zone businesses.
This threshold ensures that small enterprises and lower-income earners are protected, while larger, profit-generating businesses operating in the UAE contribute to the nation’s fiscal sustainability through fair and modern corporate tax obligations.
The introduction of UAE Corporate Tax is designed to:
→ Foster sustainable economic growth through equitable taxation across all legal persons
→ Enhance the UAE’s global standing for transparency and compliance with international tax standards
→ Combat Base Erosion and Profit Shifting (BEPS) by multinational companies
→ Ensure long-term fiscal stability through structured taxable income frameworks
→ Encourage consistency across free zone businesses, mainland companies, and foreign entities
The implementation of corporate tax in the UAE is overseen by the Federal Tax Authority (FTA). All eligible businesses are required to complete their UAE corporate tax registration through the EmaraTax portal, ensuring their compliance with the assigned relevant tax period and applicable corporate tax obligations.
Whether structured as legal persons, natural persons, or free zone businesses, companies must align their internal processes with the evolving UAE corporate tax framework. This includes maintaining proper accounting systems, fulfilling tax registration duties, and submitting timely corporate tax returns.
At Young & Right, we guide clients through every step of this process—from determining their annual taxable income and understanding their legal structure, to managing compliance within their relevant tax period. With our support, businesses operating in the UAE can remain fully aligned with the expectations of the Federal Tax Authority, while turning compliance into a competitive edge.
Under the UAE Tax Laws, registration for corporate tax is mandatory for a wide range of entities, even if they do not fall within the taxable profit threshold. The Federal Tax Authority (FTA) requires both taxable persons and certain exempt entities to complete the corporate tax registration process to remain compliant with current tax regulations.
Taxable Entities:
All UAE-based companies operating under a valid trade license and conducting business activities are subject to corporate taxes and must register with the FTA. These businesses are obligated to maintain compliance, make tax payments, and file returns in accordance with the applicable UAE tax laws.
Even though many Free Zone companies benefit from tax incentives, such as a 0% corporate tax rate, tax registration is still required. Those that meet the conditions to be considered Qualifying Free Zone Persons can maintain their tax benefits, provided they adhere to the specific guidelines set out in the corporate tax regulations.
Foreign businesses that generate income from UAE-based sources or maintain a Permanent Establishment (PE) within the UAE must register for corporate tax. This includes income derived from contracts, services, or other UAE-related economic activity.
Self-employed individuals and freelancers who earn more than AED 1 million annually through business or professional activities fall within the taxable income category and must register for corporate tax. A valid trade license may be required depending on the nature of the activity.
Some entities are exempt from corporate taxes under specific conditions, but may still be required to register for administrative purposes:
→ Government and government-controlled entities
→ Qualifying public benefit entities
→ Investment funds (subject to qualifying criteria)
→ Pension and social security funds
These exempt entities, while not subject to regular tax payments, are still part of the regulatory framework and may need to file documentation and provide the required documents to the FTA to verify their exempt status.
Staying up to date with the Corporate Tax registration timeline is essential for ensuring full regulatory compliance in the UAE. The Federal Tax Authority (FTA) has introduced a phased schedule for existing businesses based on the license issue date, and failure to meet these deadlines results in an administrative penalty of AED 10,000 for late registration.
For any new taxable person—including new businesses incorporated after March 2024—the registration must be completed within 3 months of obtaining a valid trade license. During registration, businesses are required to submit accurate identification details, branch details, and designate an authorized signatory in the registration form.
Delaying this process may lead to compliance risks, processing issues, and fines. To ensure timely filing and minimize the burden of corporate obligations, it's highly recommended to consult professional tax consultants like Young & Right, who can guide your business through the entire registration journey, from gathering documents to preparing for future tax payments.
Young & Right urges all businesses to act proactively, avoiding last-minute issues and ensuring all submissions are accurate, complete, and compliant with FTA requirements.
Before registering for Corporate Tax, it’s essential to assess your company’s tax structure and strategic position. This ensures that the registration reflects your operational reality and maximizes compliance benefits.
→ Tax Residency Status: Ensure your business qualifies as a UAE tax resident to avoid double taxation.
→ Tax Grouping: Multiple entities under common ownership may apply to register as a Tax Group, filing one consolidated return.
→ Financial Year Selection: Choosing the right fiscal year (e.g., Jan–Dec or Apr–Mar) impacts reporting obligations.
→ Free Zone Benefits: Confirm if your entity qualifies for the 0% Free Zone regime.
→ Related Party Disclosures: Prepare to disclose related entities and transactions under the transfer pricing framework.
These considerations not only impact your registration but also influence your ongoing tax obligations, including reporting, exemptions, and audits.
Many Free Zone companies in Dubai assume they are exempt. While they may benefit from the 0% rate, registration is still mandatory.
To enjoy the 0% Corporate Tax rate, a Free Zone entity must:
→ Maintain adequate substance in the Free Zone
→ Earn only Qualifying Income (e.g., income from other Free Zone entities or export transactions)
→ Not opt to be taxed at the standard 9% rate
→ Maintain audited financial statements
→ Comply with transfer pricing and documentation requirements
Non-qualifying income may trigger taxation at the standard 9% rate. At Young & Right, we help you maintain compliance while maximizing your Free Zone benefits.
Some businesses mistakenly delay registration under the assumption that no tax liability means no urgency. This is a costly misconception. Early registration offers several strategic advantages:
🔹 Avoid Penalties: Timely registration avoids the AED 10,000 penalty.
🔹 Strategic Planning: Early insight into your tax position helps in cash flow planning, budgeting, and structuring transactions.
🔹 Audit Readiness: With proper documentation and classification, your business is ready for any FTA inquiry.
🔹 Access to Professional Guidance: Early engagement allows for better alignment with accounting partners and legal advisors.
Once registered, businesses must adhere to a set of ongoing compliance requirements:
Corporate Tax returns must be filed within 9 months from the end of the relevant financial year.
Maintain accurate accounting records for 7 years, including:
→ Financial statements
→ Transfer pricing reports
→ Invoices and contracts
Be prepared to respond to FTA queries or audits. With Young & Right’s MIS-powered systems, you remain fully audit-ready.
At Young & Right, we provide comprehensive, end-to-end support for businesses looking to register for UAE Corporate Tax. Our tailored approach ensures that your business adheres to all Federal Tax Authority (FTA) requirements while transforming the registration process into a long-term strategic advantage.
From understanding the documents required to managing your EmaraTax setup and integrating with your systems, we ensure that your business stays fully compliant—without stress, delays, or hefty penalties.
We begin by conducting a thorough analysis of your legal structure, business activity, and revenue. This determines whether your company qualifies as a taxable person, if it should be grouped under a Tax Group, or if it benefits from Free Zone incentives.
→ Assess UAE tax residency status
→ Verify financial thresholds and applicable exemptions
→ Confirm your head office and operational setup
As your authorized tax agent, we handle your EmaraTax portal configuration—including creation, validation, and linking your company with the Federal Tax Authority.
→ Register the authorized signatory via UAE Pass
→ Upload and verify business identification details
→ Ensure access to all corporate tax functions within the system
Our team prepares and submits your corporate tax registration application, ensuring full accuracy and document readiness.
→ Compile and submit all documents required, including trade license, MOA, financials, and related party info
→ Select the relevant tax period based on your fiscal year
→ Provide a step-by-step guide to track progress and resolve any FTA queries
More than just registration, we help position your business for maximum advantage under the UAE corporate tax regime.
→ Determine eligibility as a Qualifying Free Zone Person
→ Facilitate Tax Group formations for consolidated filings
→ Align tax positioning with your long-term business objectives
We integrate corporate tax modules into your existing ERP, MIS, or cloud accounting platforms, providing seamless automation and ongoing visibility into your corporate tax obligations.
→ Dashboard alerts for upcoming nine months filing deadlines
→ Centralized document management for audits
→ Automated workflows to ensure compliance
Our commitment goes beyond registration. We provide continuous support to help you stay compliant, proactive, and audit-ready.
→ Filing of annual corporate tax returns
→ Transfer pricing documentation
→ MIS-powered FTA communication tracking
→ Access to training resources and user-friendly user manuals
With Young & Right, your UAE corporate tax registration is not just a requirement—it becomes a launchpad for financial strategy, operational clarity, and sustainable growth. Our expertise, automation, and advisory services ensure you avoid penalties, meet all obligations, and thrive under the new corporate tax environment.
The introduction of Corporate Tax in the UAE is not just a regulatory update—it’s a shift toward global best practices and long-term fiscal responsibility. For businesses, this represents both a challenge and an opportunity.
Failing to register on time risks significant penalties, reputational harm, and compliance issues. But with the right guidance and systems, registration becomes a foundation for strategic financial planning and sustainable growth.
At Young & Right, we don’t just help you register for Corporate Tax—we become your compliance partner. Our accounting experts, MIS professionals, and legal advisors ensure that your business remains aligned with the FTA and equipped for future changes.
Avoid penalties and stay ahead of deadlines with expert-led corporate tax registration support. Young & Right helps your business navigate FTA requirements with precision, speed, and strategy.
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