UAE businesses often confuse Corporate Tax (CT) with Value Added Tax (VAT). They are two entirely separate FTA regimes with different thresholds, filing cycles, and payers. This guide clears it up in one read — so you know exactly which one applies to you, when, and at what rate.
Who pays what
- VAT: 5%, paid by the end consumer, collected and remitted by the business
- Corporate Tax: 9% (above AED 375,000), paid by the business on its profits
- Both are administered by the Federal Tax Authority (FTA) via EmaraTax
Thresholds
- VAT mandatory registration: AED 375,000 taxable supplies (12 months)
- VAT voluntary registration: AED 187,500
- Corporate Tax: registration mandatory for every juridical person, 0% up to AED 375,000 taxable income
Filing cycles
- VAT: quarterly (or monthly for large taxpayers) — due 28 days after period end
- Corporate Tax: annual — due 9 months after financial year end
Can you owe both?
Yes. A profitable UAE SME with turnover above AED 375,000 typically registers for both, files VAT quarterly, and files a Corporate Tax return once a year. The two are computed independently — VAT on transactions, CT on adjusted profits.
Cash tip: Never fund your VAT payment out of profits. VAT collected from customers is not your money — ring-fence it monthly.
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Frequently asked questions
Quick answers to common UAE compliance questions.
This article is for general guidance only and reflects FTA rules as of June 2026. Always confirm your specific position with a qualified UAE tax advisor.