UAE Accounting & Bookkeeping: IFRS, Corporate Tax & VAT Compliance
Since June 2023, all UAE companies are subject to a 9% Corporate Tax on net profits exceeding AED 375,000. Freezone companies can benefit from a 0% rate if they qualify as QFZP (Qualifying Free Zone Persons). IFRS-compliant bookkeeping and annual tax return filing are mandatory for all entities — including Freezone companies. At Investir à Dubai, we provide certified accountants specialised in UAE and international business accounting.
What Changed for UAE Businesses: The 2023 Tax Landscape
The introduction of UAE Corporate Tax in June 2023 fundamentally changed the accounting and compliance landscape for businesses in the Emirates. Before this date, no corporate income tax applied to most sectors. Today, all UAE-registered entities must:
- Register with the Federal Tax Authority (FTA) for Corporate Tax via the EmaraTax portal
- Maintain IFRS-compliant bookkeeping (International Financial Reporting Standards)
- Prepare annual financial statements (balance sheet, income statement, cash flow statement)
- File an annual Corporate Tax return within 9 months of the financial year-end
- Retain accounting records and supporting documents for a minimum of 7 years
Freezone companies are not exempt from these obligations. QFZP-qualifying entities benefit from a 0% rate on qualifying income, but must still register, maintain IFRS accounting and file their annual return.
Our UAE Accounting & Bookkeeping Services
Monthly Bookkeeping in IFRS Standards
We handle the daily recording of all your transactions (purchases, sales, expenses, payroll, bank movements) in an IFRS-compliant accounting system. Each month you receive a concise management report including:
- Up-to-date trial balance
- Bank reconciliations
- Receivables regulatory deadlines and payables tracking
- Performance indicators (revenue, expenses, gross margin)
- Alerts on upcoming tax and
Annual Financial Statements Preparation
At year-end, we prepare all financial statements required by UAE authorities and Free Zone administrations:
- Balance Sheet — assets and liabilities
- Income Statement (P&L)
- Cash Flow Statement
- Notes to the financial statements (per IFRS requirements)
These statements are required for Free Zone licence renewal, legal audit, bank financing applications and Corporate Tax filing.
Corporate Tax Return Filing (9%)
We manage your full UAE Corporate Tax compliance cycle:
- FTA registration (EmaraTax portal) — legal deadline: within 3 months of incorporation or tax period start
- QFZP vs Mainland status determination (0% vs 9% rate)
- Taxable income calculation, allowable deductions and tax credits
- Corporate Tax return (CT Return) preparation and filing
- Support in case of FTA audit or information request
Legal Audit and Statutory Audit
Certain entities are subject to mandatory annual audit requirements — including DMCC, DIFC and some other Free Zones. We work with UAE-approved audit firms to ensure compliance:
- Annual IFRS audit by an independent licensed auditor
- Audit report required for DMCC, DIFC and similar Free Zone licence renewals
- Full coordination between our accounting team and the external auditor
VAT Management (5%)
UAE VAT at 5% was introduced in January 2018. Companies with annual revenue exceeding AED 375,000 must register. We manage:
- VAT registration with the FTA
- Quarterly VAT returns (VAT Return)
- Input VAT recovery on eligible purchases
- Intra-group and export transactions management
Specialist Free Zone Accounting
Each Free Zone has its own accounting and reporting requirements. We have in-depth knowledge of the main UAE Free Zones:
- DMCC (Dubai Multi Commodities Centre) — mandatory annual audit, DMCC-specific reporting
- DIFC (Dubai International Financial Centre) — strict IFRS, DFSA reporting if applicable
- IFZA (International Free Zone Authority) — annual financial statements, licence renewal
- SPC Free Zone, RAKEZ, SHAMS — annual reporting per each Free Zone's specific rules
Why Outsource Your UAE Accounting?
- Cost reduction vs. in-house accountant Average in-house accountant salary: AED 8,000–15,000/month — outsourcing covers the full IFRS + CT + VAT + audit scope at a fraction of the cost
- Access to a multidisciplinary team Accounting, tax advisory and audit expertise in one team — not limited to a single skill set
- Real-time regulatory updates Regulatory changes (CT, VAT, CRS, ESR) integrated immediately — no lag in your compliance
- Continuity and confidentiality No service disruption in case of staff absence or departure — institutional memory is preserved
- Financial reports in English, French or Arabic — adapted to your stakeholder requirements
FAQ — Accounting and Tax in the UAE
Qualifying Freezone Persons (QFZPs) benefit from a 0% rate on qualifying income. However, they must still register with the FTA, maintain IFRS-compliant bookkeeping and file an annual Corporate Tax return. Non-qualifying income (e.g. transactions with Mainland entities) is taxed at 9%.
The Corporate Tax return must be filed within 9 months of the end of the relevant tax period. For a company with a financial year ending 31 December, the CT return deadline is 30 September of the following year. FTA registration must be completed within 3 months of the start of the first applicable tax period.
A mandatory audit is required for companies registered with DMCC, DIFC and certain other Free Zones. For other entities (IFZA, RAK Free Zones, Mainland), an audit is not always legally mandatory — but it is required for CT return preparation if the company has complex transactions, and for licence renewal in most Free Zones.
Yes, if the sole establishment's net profits exceed AED 375,000 per year and the business is conducted under a UAE commercial licence. Natural persons conducting business activity in the UAE are within scope of Corporate Tax. However, personal employment income, investment income and real estate income as an individual (not under a business licence) are generally excluded.
The AED 375,000 VAT registration threshold applies to taxable supplies and imports. If your annual taxable turnover exceeds AED 375,000, mandatory VAT registration is required. Voluntary registration is available from AED 187,500. Failure to register on time results in FTA penalties.
The most widely used options in the UAE are: Xero (preferred for Freezone SMEs — cloud-based, multi-currency, integrates with UAE banks), QuickBooks Online (good for SMEs with US/UK shareholders), Zoho Books (cost-effective for smaller businesses), and SAP / Oracle (for larger groups). We work with all major platforms and can advise on the optimal choice for your structure and transaction volume.
All UAE companies must retain accounting records, source documents and financial statements for a minimum of 7 years from the end of the relevant tax period, as required by the UAE Corporate Tax Law and the FTA. ESR-relevant entities may also be subject to additional retention requirements.
Entrust Your UAE Accounting to an IFRS Expert
Monthly bookkeeping • Corporate Tax 9% • VAT • Legal audit • Free Zone compliance
English 
French