VAT, Corporate Tax, thresholds, exemptions — everything businesses in the UAE need to know in 2025 to stay compliant and avoid penalties.

1. The Two Main Taxes in the UAE

In 2025, two key taxes apply to businesses:

• VAT: 5% on the sale of most goods and services

• Corporate Tax: 9% on net annual profits exceeding AED 375,000

2. Registration & Filing Thresholds

• VAT: Mandatory registration if annual revenue exceeds AED 375,000

• Corporate Tax: Applies if net profits exceed AED 375,000 (after deductions)

3. Who Is Affected?

• Mainland companies: always subject to both taxes

• Freezone companies: subject if they don’t meet exemption criteria

• Freelancers with a professional license: affected if thresholds are met

4. Possible Corporate Tax Exemptions

Certain entities may qualify for exemptions:

• Qualified Freezones: if they invoice only other Freezones or international clients

• Public benefit entities: charities, pension funds, sovereign funds

• Passive income: dividends, capital gains (under certain conditions)

5. Compliance Obligations in 2025

• Register with the Federal Tax Authority (FTA)

• Submit tax returns:

  • VAT: Quarterly

  • Corporate Tax: Annually

• Maintain proper accounting records for at least 5 years

• Use the EmaraTax portal for all payments

6. Penalties for Non-Compliance

• Late filing: AED 1,000 to 10,000

• Late payments: incur interest and fixed fines

• Failure to register: minimum fine of AED 10,000

7. How SLM Consultants Supports You

✅ VAT & Corporate Tax registration and submission
✅ Fully compliant and analytical bookkeeping
✅ Audit support and tax inspection preparation
✅ Strategic tax advice and customized reporting

📞 Contact Us

SLM Consultants – Your trusted tax & accounting partner in Dubai
📍 Based in the UAE
📱 WhatsApp : +971 50 680 2887
🌐 Website: www.slmconsultants.com
📧 Email: hello@slmconsultants.com