Question 1

What income is taxed at 0% corporate tax?

Accepted Answer

AED 375,000

Question 2

When did UAE corporate tax start?

Accepted Answer

FYs on/after 1 June 2023

Question 3

Penalty for late corporate tax registration?

Accepted Answer

AED 10,000

Question 4

Small Business Relief revenue cap?

Accepted Answer

AED 3,000,000

Question 5

When does Small Business Relief end?

Accepted Answer

Periods ending ≤ 31 Dec 2026

Question 6

What is the UAE corporate tax rate?

Accepted Answer

9% — The UAE levies Corporate Tax at 9% on taxable income above AED 375,000. The regime applies to financial years beginning on or after 1 June 2023.

Question 7

When must a business register for VAT?

Accepted Answer

AED 375,000 — VAT registration is mandatory where taxable supplies and imports exceed AED 375,000 per annum.

Question 8

What is the UAE VAT rate?

Accepted Answer

5% — VAT was introduced in the UAE on 1 January 2018 at a standard rate of 5%.

Question 9

How long must UAE businesses keep records?

Accepted Answer

7 years — For Corporate Tax, taxable persons must keep all records and documents for 7 years after the end of the tax period they relate to.

Question 10

When are audited financial statements required?

Accepted Answer

Revenue over AED 50,000,000 — A taxable person (not a tax group) with revenue over AED 50 million in the tax period must prepare audited financial statements. QFZPs must also maintain them.

Question 11

Can a business do activities not on its licence?

Accepted Answer

No — only listed activities are permitted — A business may only carry out the activities recorded on its licence; to do a new one it must amend the licence to add that activity. Operating outside the listed activities risks penalties.

Question 12

Can one licence hold multiple activities?

Accepted Answer

Yes — a business can have more than one activity — A business can hold more than one activity, selected from the official activity groups in the classified list when the licence is set up or amended.

Question 13

How do you add or change activities on a licence?

Accepted Answer

Amend the licence (base fee AED 500) — File a request to amend the trade licence with the authority to change, add or delete an activity; the DET base amendment fee is AED 500, with extra fees by amendment type.

Question 14

Do some activities need approvals from other authorities?

Accepted Answer

Yes — certain activities need special approval first — Some classified activities can only be practised after approval from the competent authority (e.g. health, transport, telecom regulators), obtained before the licence is issued.

Question 15

What are the main UAE licence types?

Accepted Answer

Six: industrial, commercial, professional, tourism, agricultural, occupational — The UAE has six licence types — industrial, commercial, professional, tourism, agricultural and occupational — and the business activity determines which type applies.

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