UAE Accounting, Bookkeeping and VAT for Foreign-Owned Companies
The licence and the bank account get you running. After that, the company has to keep books, submit VAT returns, and submit a corporate-tax return — on UAE deadlines, in a form the authorities accept. We handle the bookkeeping, accounting, VAT and corporate tax in-house — in Dubai and across the UAE — so the numbers are done properly and on time.
Talk to us about your accounting- VAT is 5%. You must register once taxable turnover passes AED 375,000 over twelve months (you can register voluntarily from AED 187,500).
- VAT returns are submitted every quarter (monthly for larger businesses), due within 28 days of the period end.
- Corporate tax is 0% on the first AED 375,000 of taxable profit and 9% above it, for financial years starting on or after 1 June 2023.
- A new company usually has to register for corporate tax within three months of being set up, and submits one return a year, within nine months of its year-end.
- Basic accounting and tax starts from AED 1,000 a month for a small business; an audit, where one’s needed, is usually around AED 4,000. What you pay depends on how much goes through the business.
- We do the bookkeeping, VAT and corporate tax in-house. Audit and liquidation, where they’re needed, we run with firms we work with regularly.
What we keep on top of
Once you’re running, the ongoing numbers are the part that quietly goes wrong — missed registrations, late returns, books that aren’t in a state the authorities, a bank or an investor would accept. We keep that side in order so you can run the business.
Our in-house accounting and bookkeeping services cover:
- Bookkeeping — your accounts kept current, not reconstructed at year-end.
- VAT — registration, quarterly returns, and the record-keeping behind them.
- Corporate tax — registration, and the annual return and payment.
- Management accounts — so you can see how the business is actually doing through the year.
- Payroll — staff paid correctly, including through the WPS (the UAE’s Wage Protection System) where it applies.
Audit and liquidation are separate statutory jobs; we coordinate those with audit firms we work with regularly.
VAT, in plain terms
VAT has been in place in the UAE since January 2018, at a standard rate of 5%. Two numbers decide whether it applies to you:
- AED 375,000 — once your taxable turnover passes this over the previous twelve months (or you expect it to within the next 30 days), registration is mandatory.
- AED 187,500 — you can register voluntarily from here, which sometimes makes sense if you’re reclaiming VAT on set-up costs.
Once registered, you charge 5% where it applies, and submit a return every quarter — monthly if the business is larger — within 28 days of the period end. If you’re due a refund, the FTA needs a validated UAE bank account in the company’s name before it will pay it.
Not every company has to register on day one, and not every sale carries VAT. We work out where you actually stand rather than registering you because it sounds safer.
Corporate tax, in plain terms
UAE corporate tax applies to financial years starting on or after 1 June 2023. The rate is 0% on the first AED 375,000 of taxable profit and 9% above it.
A few things matter for a foreign-owned company:
- Registration is its own deadline. A company set up on or after 1 March 2024 generally has to register for corporate tax within three months of being established; late registration carries an AED 10,000 penalty.
- One return a year. You submit once, and pay once, within nine months of your financial year-end — no instalments. A year ending 31 December 2025 is submitted and paid by 30 September 2026.
- Free zone companies still have to deal with it. A free zone company can keep 0% on its qualifying income if it meets the Qualifying Free Zone Person conditions — real substance in the UAE, qualifying income, transfer-pricing compliance, and audited financial statements — but income that doesn’t qualify is taxed at 9%. A free zone company is not automatically tax-free.
- Small Business Relief. A resident business with revenue at or below AED 3,000,000 can elect to be treated as having no taxable income, for tax periods ending on or before 31 December 2026. It isn’t available to Qualifying Free Zone Persons.
We register you, keep the books in a state the return can be built from, and submit it.
What it costs
Basic accounting and tax starts from AED 1,000 a month for a small business. An audit, where one’s needed, is usually around AED 4,000. What you actually pay depends on how much goes through the business — a company with a handful of invoices a month costs less to keep than one with hundreds, and a business with very few transactions might only need its accounts done every six months rather than monthly.
Before anything starts, we put you in front of our accountant, so you get a clear read on what you need to do, what it’ll cost, and how often you should be doing your accounts.
Audit and liquidation
Some companies have to have their financial statements audited — every DMCC company, for example, and any free zone company relying on the 0% Qualifying Free Zone Person rate. Audit is a separate statutory job: we coordinate it with audit firms we work with regularly, rather than signing off our own numbers.
If a company has reached the end of its life, closing it down properly — deregistering it, settling its obligations, getting the clearances — is its own process. We run that with the same firms. Closing a company cleanly matters as much as opening one; a company left to lapse can leave the owner with problems later.
Why one firm for setup and the numbers
The reason we keep accounting in-house is continuity. The person who handled your setup and your bank account stays involved afterwards — so when the first VAT return or corporate-tax return comes round, nothing has to be explained from scratch. Whoever does your books already knows how the company is owned, what it does, and how it banks. You deal with the same advisor, year after year, rather than handing the work to an accountant who’s never seen the setup.
“From the very first moment, everything just felt surprisingly easy and straightforward. Every step that I thought might be complicated or stressful turned out to be simple, because Gareth explained things so clearly and always had a solution ready before I even had time to worry.”
— Rimantas Petrauskas · Google review
Frequently asked questions
Does my UAE company have to register for VAT?
Only once your taxable turnover passes AED 375,000 over a twelve-month period, or you expect it to within 30 days. Below that you can register voluntarily from AED 187,500, but you don’t have to. We work out where you actually stand.
How often do I submit VAT returns?
Quarterly for most businesses, monthly for larger ones, due within 28 days of the end of each period.
Does a free zone company pay corporate tax?
It can keep 0% on its qualifying income if it meets the Qualifying Free Zone Person conditions — including real UAE substance and audited financial statements — but any non-qualifying income is taxed at 9%. A free zone company is not automatically exempt.
When do I have to register for corporate tax?
A company set up on or after 1 March 2024 generally registers within three months of being established. The return is submitted once a year, within nine months of your year-end. Late registration carries an AED 10,000 penalty.
What is Small Business Relief?
If your business is UAE-resident with revenue at or below AED 3,000,000, you can elect to be treated as having no taxable income, for tax periods ending on or before 31 December 2026. It doesn’t apply to Qualifying Free Zone Persons.
Do I need an audit?
Some companies do — every DMCC company, and any free zone company relying on the 0% Qualifying Free Zone Person rate, for example. We coordinate audits with firms we work with regularly.
How much do accounting services cost in the UAE?
Basic accounting and tax starts from AED 1,000 a month for a small business, and an audit, where one’s needed, is usually around AED 4,000. It depends on how much goes through the business — some businesses with very few transactions only need their accounts done every six months. We put you in front of our accountant first, so you get a clear read on what you need and what it’ll cost.
Where to read next
UAE corporate tax for foreign-owned entities — the detail on rates, the Qualifying Free Zone Person rules and Small Business Relief.
How to open a UAE business bank account — the account your VAT refund and tax payments run through.
UAE residence visas for business owners — residency for the owner and the team.
Talk to us about your accounting
Tell us what the company does and where it’s set up, and we’ll tell you what you have to register for, what you’ll submit, and when. We do the bookkeeping, VAT and corporate tax in-house, and you deal with the same advisor year after year.
Get in touch