FAQ
UAE tax and accounting FAQs
Last updated: 3 November 2026
Short answers, each linked to the official source. This is general information only. Rules change, so talk to us before acting.
Corporate tax
- What is the UAE corporate tax rate?
UAE corporate tax is 0% on taxable income up to AED 375,000 and 9% on the portion above AED 375,000.
How Rethink helps: We prepare your corporate tax position from reviewed accounts, so you know what you owe. See the service
- When does a new company need to register for corporate tax?
A UAE company incorporated or established on or after 1 March 2024 must apply for corporate tax registration within three months of its incorporation or establishment date.
How Rethink helps: Rethink Finance registers your business for corporate tax on EmaraTax and tracks your deadline. See the service
Sources: FTA Decision No. 3 of 2024 on registration timelines; FTA public clarification on registration timelines
- What is the penalty for registering late?
The penalty is AED 10,000. Under the FTA's waiver initiative, it is waived (or credited back if already paid) when you file your first tax return within seven months of the end of your first tax period.
How Rethink helps: We file your first corporate tax return on time, within the waiver window. See the service
Sources: FTA Corporate Tax Registration service; MoF: AED 10,000 penalty for late registration
- When is the corporate tax return due?
The return is due within nine months of the end of each tax period.
How Rethink helps: We prepare and file your corporate tax return before the nine-month deadline. See the service
Source: MoF: Corporate Tax in the UAE
- Can my small business claim Small Business Relief?
Resident businesses with revenue of AED 3 million or less in the tax period and every previous tax period can elect to be treated as having no taxable income. Qualifying Free Zone Persons and members of multinational groups cannot claim it. Ministerial Decision No. 131 of 2026 extended the relief to tax periods ending on or before 31 December 2029.
How Rethink helps: We check whether you qualify for Small Business Relief and make the election in your return. See the service
Sources: Ministerial Decision No. 131 of 2026 (MoF); FTA Corporate Tax Bulletin for small businesses
VAT
- When do I have to register for VAT?
Registration is mandatory when your taxable supplies and imports exceed AED 375,000 over the past 12 months, or are expected to exceed it in the next 30 days.
How Rethink helps: We check whether you need to register for VAT, and handle the registration. See the service
Source: FTA: Registration for VAT
- Can I register for VAT voluntarily?
Yes. You can register voluntarily once your taxable supplies and imports, or taxable expenses, exceed AED 187,500 over the past 12 months or are expected to in the next 30 days.
How Rethink helps: We handle your voluntary VAT registration. See the service
- How long do I have to apply once I pass the threshold?
You have 30 days from the date you became required to register.
How Rethink helps: We submit your VAT registration within the 30-day window. See the service
Source: FTA: VAT Registration service
- When are VAT returns and payments due?
VAT returns and payments are due within 28 days from the end of each tax period.
How Rethink helps: We file your VAT returns within the 28-day window, prepared from reviewed Xero records. See the service
E-invoicing
- When does e-invoicing become mandatory for my business?
It depends on annual revenue. AED 50 million or more: appoint an Accredited Service Provider by 30 October 2026 and go live by 1 January 2027. Below AED 50 million: appoint one by 31 March 2027 and go live by 1 July 2027. Government entities: appoint by 31 March 2027 and go live by 1 October 2027.
How Rethink helps: Xero delivers UAE e-invoicing through Casim, an Accredited Service Provider. As your Xero accountant, we set it up and get you live before your deadline. Rethink Finance is not an Accredited Service Provider. See the service
Sources: Ministerial Decision No. 244 of 2025; MoF: amendments extending the ASP deadline to 30 October 2026; FTA news, 25 October 2026; Xero UAE eInvoicing; MoF list of pre-approved eInvoicing Service Providers
- What is the penalty for missing an e-invoicing deadline?
The penalty is AED 5,000 for each month or part of a month of delay, including failing to appoint an Accredited Service Provider on time.
How Rethink helps: We plan your readiness against the deadlines so penalties don't catch you out. See the service
Source: FTA news, 25 October 2026
- Does e-invoicing apply if I only sell to consumers?
Not yet. Business-to-consumer transactions are outside the system, and a business that only makes them is not subject to it, until the Minister decides otherwise.
How Rethink helps: We review your invoicing and confirm whether e-invoicing applies to you. See the service
Bookkeeping
- How long do I need to keep my business records?
For corporate tax, keep them for seven years after the end of the tax period they relate to. The records must support the information in your tax returns.
How Rethink helps: We keep your books in Xero, up to date and organised to support your tax returns. See the service
- Can a small business keep its accounts on a cash basis?
Yes, if you elect for Small Business Relief: you can prepare your financial statements on the cash basis of accounting.
How Rethink helps: We keep your books on the right basis for your business. See the service
Xero
- Can Xero prepare my UAE VAT return?
Yes. Xero maps your data to the VAT return form, creates reports in Arabic and English, and generates your FTA Audit File.
How Rethink helps: We set up Xero for UAE VAT and support you on it, as your Xero partner in Dubai. See the service
Source: Xero UAE
- Does Xero support UAE e-invoicing?
Yes. UAE eInvoicing is available through Xero on Starter, Standard and Premium plans at no extra cost. You set it up in Xero's eInvoicing platform, Invoici, then select Casim, a UAE Accredited Service Provider, in EmaraTax.
How Rethink helps: As your Xero accountant, we set up e-invoicing through Xero and Casim and get you live before your deadline. Rethink Finance is not an Accredited Service Provider. See the service
Sources: Xero UAE eInvoicing; MoF list of pre-approved eInvoicing Service Providers