The UAE introduced Corporate Tax in June 2023 — a fundamental change for every business operating in the country. Understanding what applies to your company, when registration is required and what qualifies for relief is not optional. It is now part of running a compliant UAE business.
Most UAE businesses need to register for Corporate Tax, regardless of whether they expect to owe tax. Failure to register, file or maintain proper records can result in penalties from the Federal Tax Authority. The compliance framework requires businesses to track income, maintain accounting records, understand exemptions and file returns on time.
Free zone companies face a specific set of questions: whether they qualify as a Qualifying Free Zone Person, what counts as qualifying income, whether they have substance and whether any mainland nexus affects their position. These questions matter and they require careful review, not assumptions.
VAT has been in place since January 2018. The 5% standard rate applies to most taxable supplies, with mandatory registration above the turnover threshold. Some businesses are still not properly registered or filing correctly — and the FTA has become increasingly active in compliance enforcement.
XILLION helps companies understand what applies to them, coordinates with qualified tax and accounting professionals where needed, and ensures the compliance calendar — registrations, renewals, filings — does not get missed.