UAE Tax & Compliance Checklist for Dubai Companies

Starting a company in Dubai comes with a number of tax and compliance requirements. Some need to be dealt with soon after incorporation, while others depend on the company's activities, revenue, ownership structure and tax position.

From Corporate Tax and VAT registrations to Free Zone eligibility, Transfer Pricing, E-Invoicing, audit requirements and FATCA/CRS, there are several compliances points that businesses should assess from day one.

Below is a practical UAE Tax & Compliance Checklist for UAE entities.

Dubai Company – Tax Compliance Checklist You Can’t Miss

From Corporate Tax and VAT registrations to Free Zone eligibility, Transfer Pricing, E-Invoicing, audit requirements and FATCA/CRS, there are several compliances points that businesses should assess from day one. Below is a practical UAE Tax & Compliance Checklist for UAE entities.

1. Immediately on Incorporation

• Register the UAE entity separately for UAE Corporate Tax within 90 days of incorporation.
• Failure to register within the applicable deadline may result in a penalty of AED 10,000 administrative penalty.
• Once registered, the entity will receive its Corporate Tax Registration Number / TRN through the FTA's Emara Tax portal.
• Separately identify the entity's first Tax Period, as this will determine the first Corporate Tax return deadline.

2. VAT Assessment

• Determine whether VAT registration is required
• VAT registration is a separate registration from Corporate Tax.
• Mandatory registration should be assessed where taxable supplies and imports exceed, or are expected to exceed, the applicable UAE VAT registration threshold of AED 375,000.
• Voluntary registration may also be available once the relevant voluntary registration threshold is met of AED 187,500.
• For a UAE entity providing services to an overseas group company, determine:
  • the nature of the services;
  • customer location;
  • place-of-supply treatment;
  • whether the services can qualify for zero-rating; and
  • whether the turnover nevertheless counts towards the VAT registration threshold.

3. UAE E-Invoicing Readiness for B2B and B2G Businesses

• Assess applicability of the UAE E-Invoicing regime. The UAE is introducing a new electronic invoicing regime from 2027 onwards.
• The regime will require relevant invoices to be electronically transmitted through the prescribed electronic invoicing framework rather than relying solely on traditional PDF invoices.
• For a newly established UAE business, this should be considered when selecting or configuring the accounting/ERP system, rather than waiting until implementation becomes mandatory.

4. Free Zone Corporate Tax Assessment

• Determine whether the company intends to claim the 0% Free Zone Corporate Tax regime
• A Free Zone company does not automatically qualify for 0% Corporate Tax.
• To obtain and retain Qualifying Free Zone Person ("QFZP") status, the company must continuously satisfy the relevant conditions, including:
  • deriving Qualifying Income;
  • maintaining adequate UAE substance;
  • satisfying the de minimis test for non-qualifying revenue;
  • complying with UAE Transfer Pricing requirements;
  • preparing and maintaining audited financial statements;
  • meeting the prescribed Free Zone conditions; and
  • not electing to become subject to the ordinary Corporate Tax regime.
• Special attention to be given to Service / Cost-Plus Companies

5. Transfer Pricing - Transfer Pricing Benchmarking, Policy and Intercompany Arrangements

6. Master File / Local File Assessment - The requirement to maintain both a UAE Master File and Local File applies where either:

• the UAE entity's own revenue is at least AED 200 million; or
• it is a constituent company of an MNE Group with consolidated group revenue of at least AED 3.15 billion for the relevant period.

7. Corporate Tax Annual Return - due on or before 9 months following the end of tax period. For instance, an entity follows Jan 2025 to Dec 2025 as tax period, their corporate tax return filing would be due by 30 Sep 2026.

8. VAT Returns – Quarterly VAT returns

9. Statutory / Tax Audit Requirements mandatory for entities intending to claim the 0% Qualifying Free Zone Person (QFZP) regime or with a turnover of more than AED 50 mn.

10. FATCA / CRS Assessment

11. AML / KYC Assessment

Final Note

For businesses setting up in Dubai, getting the tax and compliance position right from the beginning can prevent issues later. The exact requirements will depend on the company's activities, structure and transactions.

The checklist above can be used as an initial review of the key UAE Tax & Compliance areas that a UAE entity should consider.