As the UAE strengthens its position as a global financial center, 2025 marks a transformative year for businesses across all sectors. The introduction of the Corporate Tax (CT) has redefined the way companies operate, plan, and grow within the UAE. While the country remains a competitive and investor-friendly economy, the new tax regime has brought with it both opportunities and challenges. Let’s explore how Corporate Tax is shaping the UAE business landscape in 2025 — and what business owners need to know to stay compliant, competitive, and confident. 1. A Quick Overview of Corporate Tax in 2025 In 2025, the UAE’s corporate tax framework applies a 9% tax rate on taxable profits exceeding AED 375,000. Profits below this threshold are not subject to corporate tax, supporting the growth of small businesses and startups. This shift is part of the UAE’s broader commitment to align with global tax standards, promote transparency, and diversify government revenue sources beyond oil. The implementation is being overseen by the Federal Tax Authority (FTA), which has introduced clear guidelines for registration, filing, and compliance. 2. Who Is Affected by the Corporate Tax? The new tax regime impacts a broad range of entities, including: Mainland Companies: Most operational businesses in the UAE fall into this category and are now required to register for corporate tax. Freezone Entities: While many free zones continue to offer tax benefits, they are not exempt by default. Companies must meet specific conditions to retain tax exemptions. Foreign Companies with UAE-Based Income: If a non-resident earns income from the UAE that doesn’t involve a permanent establishment, they may still fall under the CT net. In 2025, more freezone businesses are seeking clarity on eligibility, while multinational companies are under pressure to align their transfer pricing documentation with OECD standards. 3. Operational & Financial Impact on Businesses Corporate Tax is influencing businesses in many key areas: a) Financial Planning Companies must now budget for tax obligations. This affects pricing strategies, operating margins, and cash flow management. Businesses that once thrived in a tax-free environment are adapting to a new normal. b) Record-Keeping and Documentation The FTA mandates clear, verifiable records of income and expenses. Every business must maintain: Financial statements Audit trails Supporting documentation for deductions and exemptions Failing to maintain proper records can result in penalties or legal action. c) Internal Restructuring Some businesses are restructuring their legal entities to optimize their tax position. This includes consolidating operations, revisiting ownership models, or using holding companies for asset management. 4. Compliance Requirements in 2025 The UAE’s CT regime includes the following mandatory requirements: Corporate Tax Registration: All taxable entities must register with the FTA and obtain a Tax Registration Number (TRN). Filing Annual Returns: Businesses must submit a corporate tax return annually, even if they fall below the AED 375,000 threshold. Maintaining Accounting Records: These records must be kept for a minimum of 7 years and be made available upon FTA request. Transfer Pricing Documentation: Businesses engaged in cross-border transactions must comply with transfer pricing rules and file relevant disclosure forms. 5. Penalties for Non-Compliance In 2025, the FTA has outlined clear penalties for non-compliance, including: Failure to register: AED 10,000 Late filing of returns: AED 1,000 for the first offense, increasing with repetition Failure to submit transfer pricing documentation: AED 500 per day Inaccurate or misleading tax declarations: Severe penalties, including suspension of trade licenses It’s no longer optional — businesses must act now or face consequences. 6. Impact on SMEs and Startups Startups and SMEs enjoy certain benefits under the CT regime: Income under AED 375,000 is exempt Simplified tax return filing options Encouragement to maintain formal bookkeeping for future growth and investment Still, many smaller companies are seeking help from consultants to understand compliance responsibilities and avoid future issues. 7. Strategic Role of Tax Advisors With this new environment, tax advisory and compliance services have become essential. Professional consultants help with: Tax registration and filings Reviewing financial statements for tax impact Structuring business models to minimize tax liability Audit preparedness and reporting Almalia Consulting, for example, provides complete corporate tax solutions — from VAT and CT registration to financial structuring and advisory — ensuring businesses remain compliant and future-ready. Conclusion: Adapting to the New Era The introduction of corporate tax in the UAE signals a maturing, globally integrated economy. While the 9% rate remains one of the most competitive globally, the real challenge lies in adapting operations, building internal systems, and staying ahead of compliance.

Since the introduction of Value Added Tax (VAT) in the UAE on January 1, 2018, businesses across Dubai and the wider Emirates have had to comply with one of the region’s most significant tax reforms. Administered by the Federal Tax Authority (FTA), VAT has become a critical component of business operations, requiring companies to register, file returns, and maintain proper records. If you own or manage a business in Dubai or anywhere in the UAE, understanding VAT registration is vital to ensure compliance and avoid costly penalties. This comprehensive, step‑by‑step guide will walk you through everything you need to know about VAT registration, eligibility, process, and key requirements. What is VAT and Why Does It Matter? VAT (Value Added Tax) is an indirect tax applied at each stage of the supply chain, where value is added to goods and services. In the UAE, the standard VAT rate is 5%, which applies to most goods and services unless specifically exempt or zero‑rated. The purpose of VAT is not just to generate government revenue but also to create a transparent, accountable financial system in line with international standards. For businesses, registering for VAT ensures that they can legally collect VAT from customers and claim input VAT on their expenses. Who Needs to Register for VAT in UAE? Before you begin the process, it’s essential to know whether your business is required to register. VAT registration is mandatory or voluntary depending on your taxable turnover: ✅ Mandatory VAT Registration If your taxable supplies and imports exceed AED 375,000 in the last 12 months, or are expected to exceed this in the next 30 days. ✅ Voluntary VAT Registration If your taxable supplies and imports exceed AED 187,500 in the last 12 months, you can choose to register voluntarily. Voluntary registration allows smaller businesses to claim input VAT and appear more credible in the market. Failure to register when required can result in significant penalties, including fines starting from AED 10,000. Step-by-Step Guide to VAT Registration in Dubai & UAE Now let’s go through the VAT registration process step by step. Step 1: Create an FTA e-Services Account Visit the official Federal Tax Authority website (https://tax.gov.ae). Click on “Sign Up” to create an account. Provide details such as your email address and set up login credentials. Once registered, you will receive a confirmation email to activate your account. Step 2: Prepare the Required Documents Before starting the online registration, make sure you have the following documents ready in scanned format: Trade license copy Passport/Emirates ID of the business owner(s) Memorandum of Association (MOA) Contact details of the company (email, phone, address) Bank account details (IBAN and bank name) Turnover declaration for the last 12 months (audited financials, sales invoices, or bank statements) Details of import/export activities (if applicable) Having all documents organized will help avoid delays in approval. Step 3: Log in and Access VAT Registration Form Log into your FTA account. Go to the e‑Services portal and click on “VAT Registration.” Start filling out the online application form. Step 4: Fill in Business Information The VAT application form requires detailed information about your business, including: Legal entity type (LLC, Sole Proprietorship, Partnership, etc.) Business activities carried out Trade name and license number Branches (if any) operating under the same license Make sure all details match your trade license and official documents to avoid rejection. Step 5: Provide Financial Details In this section, you must declare your financials, including: Turnover for the last 12 months Expected turnover in the next 30 days Details of imports and exports Information on whether your business deals with excise goods Accuracy is crucial here, as the FTA may request supporting documents to verify your declarations. Step 6: Select VAT Registration Type The form will ask whether you want to apply for: Mandatory Registration (if above AED 375,000 threshold) Voluntary Registration (if above AED 187,500 but below AED 375,000) You must also specify whether you are applying for Tax Group Registration if you have multiple related entities under common ownership. Step 7: Add Authorized Signatory Provide the details of the individual authorized to sign and manage VAT affairs on behalf of your company. This could be the owner, manager, or a nominated representative. Step 8: Submit the Application Review all the details carefully. Upload required supporting documents. Submit your VAT registration application. You will receive an acknowledgment from the FTA, and the authority may request additional documents if needed. Step 9: VAT Registration Approval & TRN Issuance Once your application is reviewed and approved, the FTA will issue your Tax Registration Number (TRN). The TRN is a unique 15-digit number that identifies your business as VAT registered. You must include this TRN on all invoices, credit notes, and VAT returns. Congratulations – your business is now officially VAT registered in the UAE! After VAT Registration – What’s Next? Registering for VAT is only the beginning. Compliance is an ongoing responsibility. Here’s what you need to do after receiving your TRN: ✅ File VAT Returns on Time VAT returns must be filed quarterly (in most cases) through the FTA portal. Returns include details of sales, purchases, VAT collected, and VAT paid. ✅ Issue VAT-Compliant Invoices Invoices must include TRN, invoice number, date, customer details, description of goods/services, and VAT amount. ✅ Maintain Proper Records Businesses must maintain records of invoices, receipts, and financial documents for at least 5 years. ✅ Pay VAT on Time VAT payments are made online via the FTA portal. Late payments attract penalties and daily fines. Common Challenges in VAT Registration Many businesses face difficulties such as: Incorrectly filled application forms leading to delays. Missing or mismatched documents. Not understanding whether to opt for voluntary or mandatory registration. Lack of clarity on post-registration compliance. That’s why partnering with a reliable consultancy firm like Almalia Consulting ensures a smooth, error-free VAT registration process and ongoing compliance support. Why Choose Almalia Consulting for VAT Registration in UAE? At Almalia Consulting FZCO, we provide complete VAT support: Guidance

The UAE Ministry of Finance has officially launched a new three-year federal general budget cycle for 2027–2029. This initiative reflects the government’s continued progress toward a more advanced, results-oriented financial planning framework. Unlike traditional annual budgeting, the new cycle positions the federal budget as a strategic management tool, enabling government entities to plan, allocate, and deliver more efficiently over a longer horizon. It promotes predictability, performance, and alignment with national goals. What This Means for UAE Businesses This shift is expected to enhance: For businesses operating in regulated or government-linked sectors, this opens the door to more consistent engagement, improved forecasting, and longer-term contracts. How Almalia Consulting FZCO Supports Strategic Planning At Almalia Consulting FZCO, we help businesses in the UAE prepare for and align with evolving government strategies. Our services include: We interpret policy developments like this not just as administrative changes, but as opportunities to optimize your financial positioning and strategic decisions. Looking Ahead The 2027–2029 budget cycle signals a future of smarter governance and structured growth. Almalia Consulting stands ready to help businesses navigate this transformation with clarity and confidence. #MoFUAE #FederalBudgetUAE #AlmaliaConsulting #StrategicPlanningUAE #GovernmentFinanceUAE #BudgetCycle2027 #PublicPrivateAlignment

The UAE Ministry of Finance has issued a new Ministerial Decision under Federal Decree-Law No. (47) of 2022, clarifying how depreciation should be handled for investment properties held at fair value. Key Update:- Businesses using the fair value model under IFRS for investment properties can no longer deduct unrealized gains or losses for corporate tax purposes. Instead, they must apply a notional depreciation adjustment as if the property were held at cost. This ensures: Why This MattersReal estate companies and investment firms will now need to calculate depreciation separately for tax reporting, even if their financials reflect market-based valuations. How Almalia Consulting FZCO Can HelpWe assist with: For expert support in adapting to this change, contact Almalia Consulting today. #UAEcorporatetax #investmentproperty #depreciationadjustment #almaliaconsulting #taxcomplianceUAE