Doing business in the UAE? Here's everything you need to know about accounting, VAT, corporate tax, and audits to stay compliant in 2025.

Why the UAE Tax System Attracts Entrepreneurs

The UAE offers an extremely attractive tax environment:
✅ No personal income tax
✅ 0% corporate tax in free zones
✅ Clear VAT regulations

But a tax-friendly system doesn’t mean there are no rules! To remain compliant, it’s essential to understand your accounting and tax obligations.

1️⃣ Is Accounting Mandatory in the UAE?

Yes. All businesses must:

• Maintain accounting records in compliance with IFRS

• Keep financial documents for at least 5 years

• File tax returns on time

2️⃣ VAT & Tax Compliance

• VAT (5%) is mandatory once your annual turnover exceeds AED 375,000

• Quarterly filings via the Federal Tax Authority (FTA) portal

• ⚠️ Heavy fines for late or incorrect filings

3️⃣ Corporate Tax (Since 2023)

• Rate: 9% on net profits above AED 375,000

• Applies to businesses in Mainland and certain Free Zones

• Exempted activities are not subject to this tax

• Annual filing required

4️⃣ Financial Audits: Required or Not?

• Mandatory in most Free Zones (e.g. DIFC, DMCC, JAFZA…)

• Important for:

  • Financial transparency

  • Gaining trust from investors and banks

  • License renewal in some zones

5️⃣ Why Work with a Professional Like SLM Consultants?

💡 Outsourcing your accounting means saving time, gaining peace of mind, and avoiding costly mistakes.

Our services allow you to:

• Avoid hidden costs and penalties

• Keep your accounting clear and compliant

• Get support in case of a tax audit or inspection

• Optimize your tax strategy legally and efficiently

📞 At SLM Consultants, we handle for you:

• Accounting & Bookkeeping

• Tax filings (VAT, corporate tax…)

• Financial Audits

• Tax Planning & Optimization

👉 Need expert help with your UAE finances?

📲 Contact us today at +971 50 680 2887
or write to us via our website for a free consultation.