United Arab Emirates

A market reshaped by the 2023 tax reforms.

Accountants for UAE SMEs now run two federal tax regimes rather than none. VAT at 5 percent applies once taxable supplies pass AED 375,000, and Corporate Tax at 9 percent applies to profits above the same figure for periods starting on or after 1 June 2023. Both are administered through EmaraTax.

The United Arab Emirates spent four decades as one of the world's last major zero-tax jurisdictions for businesses. That changed materially: 5% VAT arrived in January 2018, and a 9% federal Corporate Tax on profits above AED 375,000 became effective for accounting periods starting on or after 1 June 2023. The compliance regime that supports both is now a significant operational matter for UAE SMEs.

The Federal Tax Authority (FTA) administers both regimes through the EmaraTax portal. Businesses with taxable supplies above AED 375,000 must register for VAT. All taxable persons, including freezone entities, must register for Corporate Tax, even if they qualify for the 0% Qualifying Free Zone Person regime. Annual returns are filed within nine months of the financial year-end.

On top of federal taxes, UAE businesses face Economic Substance Regulations (ESR) for relevant activities, Ultimate Beneficial Owner (UBO) disclosure, Anti-Money Laundering (AML) compliance for designated non-financial businesses, and the Wages Protection System (WPS) for processing payroll through authorised channels.

Accountaire is FTA Tax Agent registered, IFRS-trained, and runs a full-overlap working day with the UAE. Whether you operate on the mainland or in a freezone like DIFC, ADGM, DMCC, JAFZA or any of the 40+ others, we handle the complete UAE compliance stack.

Reporting is prepared under IFRS as issued by the IFRS Foundation, which is the standard the Corporate Tax regime is built on. New entrants usually start with our company incorporation service for the mainland or freezone entity, then VAT and Corporate Tax compliance once registered. Owner-managed groups should read small business accounting for 5 to 50 employee firms, and the filing calendar itself is set out in our UAE VAT and Corporate Tax compliance calendar. Free zone and mainland companies draw on the same full list of accounting services. Most start with cloud bookkeeping and monthly management accounts, then add filings as the registration thresholds are crossed.

The UAE year

What do accountants for UAE SMEs file, and when?

The federal cycle we run for mainland and freezone entities alike.

What do accountants for UAE SMEs file, and when?
ObligationApplies toTiming
VAT registrationTaxable supplies above AED 375,000Mandatory, voluntary from AED 187,500
VAT return through EmaraTaxRegistered businessesQuarterly for most, monthly for larger taxpayers
Corporate Tax registrationAll taxable persons, freezones includedRequired even where the rate is nil
Corporate Tax returnAll taxable personsNine months after the end of the tax period
Small Business Relief electionRevenue at or below AED 3,000,000Claimed in the return, subject to the sunset date
WPS salary fileEmployers on the Wages Protection SystemEvery pay cycle through an authorised channel
Economic Substance and UBO filingsEntities carrying on relevant activitiesAnnually, per the applicable regulation
500k+
UAE businesses registered with the FTA
5%
Standard VAT rate (FTA-administered)
9%
Corporate Tax above AED 375k profit
40+
Free zones with different rules
Services we run for United Arab Emirates SMEs

Built for UAE businesses.

Mainland or freezone, every service calibrated to the UAE regime.

CORE

IFRS bookkeeping

Daily bookkeeping in Xero or QuickBooks. IFRS-compliant chart of accounts. Bank reconciliation for AED and foreign currency accounts.

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CORE

WPS payroll

WPS-compliant payroll processing for mainland and freezone entities. End-of-service gratuity tracking. Multi-currency where applicable.

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COMPLIANCE

FTA VAT & Corporate Tax

Quarterly VAT returns and annual Corporate Tax returns via EmaraTax. FTA Tax Agent registered. Small-business relief applied where eligible.

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COMPLIANCE

ESR & UBO compliance

Economic Substance Regulation notifications and reports for relevant activities. Ultimate Beneficial Owner registry maintained.

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REPORTING

Management accounts

Monthly IFRS-aligned reporting. Multi-entity consolidation common for UAE group structures.

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ADVISORY

CFO-as-a-Service

Strategic finance for scaling UAE businesses: fundraising, multi-jurisdictional structuring, exit preparation.

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Compliance regime

UAE compliance, handled.

The filings, portals and deadlines we own for every UAE client.

  • FTA Tax Agent registrationWe are FTA-registered tax agents, authorised to submit VAT and Corporate Tax returns on behalf of clients through EmaraTax with full legal standing.
  • VAT registration & quarterly returns Voluntary or mandatory registration. Quarterly VAT returns filed via EmaraTax. Input VAT reconciliation, reverse-charge mechanism, designated-zone rules applied correctly.
  • Corporate Tax registration & annual returnRegistration with FTA within statutory timeline. Annual Corporate Tax return filed within nine months of financial year-end. 9% rate above AED 375k, 0% below.
  • Qualifying Free Zone Person (QFZP) assessmentFor freezone entities, we assess your eligibility for the 0% QFZP rate, document qualifying income vs. non-qualifying, and prepare the annual return accordingly.
  • Small Business Relief (SBR) electionFor businesses with revenue under AED 3M, we evaluate and elect SBR where it produces a better outcome, treating you as if you had no taxable income for the period.
  • Economic Substance Regulations (ESR)For relevant-activity entities: distribution, headquarters, holding, IP, finance, insurance, lease, shipping. Notifications and reports filed via the Ministry of Finance portal.
  • WPS payroll processing Salary Information Files generated to WPS specifications. Disbursements processed via authorised exchange houses or banks. End-of-service gratuity accrued and tracked.
  • IFRS-compliant statutory accounts Annual financial statements prepared to International Financial Reporting Standards. Suitable for licensing renewal, freezone authority requirements and bank-loan covenants.
Why United Arab Emirates SMEs choose us

What UAE clients tell us they value.

EXPERTISE

FTA-registered Tax Agents.

We hold formal FTA Tax Agent registration. Submissions go through us officially. Our team is IFRS-trained and current on the 2023 Corporate Tax regime including QFZP and SBR.

TIMEZONE

Full working-day overlap.

Our entire working day overlaps yours. Same-day responses are the norm, not the exception.

TECH

IFRS-aligned Xero / QuickBooks.

Modern cloud accounting configured to IFRS. EmaraTax integration. We handle freezone-specific reporting requirements for DIFC, ADGM, DMCC and others.

VALUE

AED-priced. Fixed monthly fees.

Local pricing in AED. From AED 1,850/month. No hourly billing. Year-round compliance support included, no separate fees for VAT, Corporate Tax or ESR within scope.

"We needed someone who understood FTA VAT and IFRS reporting without us having to micromanage. Monthly pack lands on the 4th, every month. That alone made the switch worth it."
M
Managing Director ยท ConsultancyDMCC, Dubai

What UAE business owners ask us first.

Are you registered as a Tax Agent with the FTA?
Yes, we are FTA registered Tax Agents. The appointment is one you approve inside EmaraTax rather than something we can grant ourselves, and the FTA sets what it covers. It does not shift liability: the FTA holds the taxable person responsible for what a return says, whoever pressed submit. Keep your own EmaraTax login active, because some notices surface only there.
How does the 2023 Corporate Tax regime apply to me?
Registration and filing are separate obligations, and both bite even where the tax is nil. An entity expecting to pay nothing still registers, still files within nine months of the end of its tax period, and still keeps records supporting the position. A late registration penalty applies regardless of profit. Free zone status is not permanent either, because qualifying income is tested every period afresh.
My business is in DIFC / ADGM / DMCC. Do you support freezones?
Yes. DIFC and ADGM are not simply zones with a smarter address: each runs its own company law and its own registrar, and audited financial statements are usually a condition of licence renewal rather than an optional extra. Other zones vary widely on that point. None of it changes the federal position, because Corporate Tax registration applies to free zone entities too.
What is Small Business Relief and do I qualify?
For accounting periods where revenue does not exceed AED 3 million, businesses can elect Small Business Relief, being treated as having no taxable income. The election is available until December 2026. We assess whether SBR or the standard regime produces a better outcome for you each year.
How does VAT work for cross-border services?
Reverse charge applies on most B2B services from outside the UAE. Zero-rated rules apply for exports to non-GCC countries and certain B2B exports to other GCC implementing states. Designated zones have their own treatment for goods. We apply the correct rules for each transaction.
Do you handle ESR (Economic Substance) reporting?
The test looks at what a business actually does, not at what the trade licence says, so a dormant holding entity can sit inside the regime while a busy trading company sits outside it. We report where the entity genuinely carries on a relevant activity, assessing group structures entity by entity. We check the current Ministry of Finance position rather than assuming last year's answer still holds.
What about WPS payroll and end-of-service gratuity?
Gratuity accrues on basic pay, not on total package. An allowance-heavy contract therefore builds far less than staff expect, and that gap turns into an argument on the way out unless the accrual is visible every month, which is how we run it. WPS is a separate problem. The salary file has to agree with the registered contract, so a bonus paid outside it can push the whole file into rejection, and repeated failures follow the establishment into its next visa application.
Can you handle Anti-Money Laundering compliance for DNFBPs?
For designated non-financial businesses and professions, we provide AML record-keeping and CDD documentation within bookkeeping scope. AML registration, training and risk assessments are typically handled by specialist AML compliance firms. We coordinate with them.
For UAE SMEs

Want UAE accounting done properly?

Thirty minutes on a call. Written, fixed-fee proposal within 24 hours. FTA Tax Agent transfer included.