Stay Ahead of UAE Tax Laws with Expert-Led Guidance
We simplify your business taxation — from corporate filings to international structuring — so you stay compliant and tax-efficient.
Get a comprehensive understanding of our services and solutions with our informative brochure.
Taxation Services in the UAE
Stay compliant. Minimize risk. Maximize efficiency. Aquarius helps you navigate the UAE tax landscape with confidence.
As the UAE continues to modernize its tax system, businesses are expected to adapt quickly and accurately. From Corporate Tax to VAT and ESR regulations, Aquarius provides expert-led taxation services that ensure your business stays fully compliant, without the stress.
Whether you’re a Freezone startup or a Mainland enterprise, we tailor our tax solutions to match your specific structure, industry, and financial goals.
Different Categories of Tax in UAE
The United Arab Emirates (UAE) has been one of the foremost appealing destinations for budding firms, mid-sized firms, and major corporations because of its 0% personal income tax, as well as a multitude of business permits and operations permitted in the free zones and cheap import tariffs. The UAE government has always made an effort to make the country’s tax environment as attractive and reasonable. The United Arab Emirates has produced different tax categories over a period.
Corporate Tax
- There is no tax on taxable income up to AED 375,000
- Taxable income above AED375,000 is subject to a 9% tax rate
Non-Taxable Income & Exemptions
- Businesses that engage in commercial activities and the exploitation of natural resources
- On domestic and cross-border payments, there will be no withholding taxes.
- Individuals who own shares or other assets in their own name and get dividends, capital gains, or other forms of income.
- Individuals who have bank accounts or savings plans earn interest and other income.
- An individual’s earnings are determined by their salary or employment income.
- Dividends and capital gains are generated by qualifying shareholdings in a UAE firm.
- Intra-group transfers and reorganizations that qualify.
- Individuals who do not require a company license or license to invest in real estate in the UAE can do so in their personal capacity
Value-Added Tax (VAT)
VAT (Value Added Tax), which was established on January 1, 2018, is a sort of indirect tax that is collected on the purchase and sale of goods and services. The UAE government’s decision to impose VAT is part of a larger approach to minimize the nation’s reliance on oil and petroleum products as a source of funding, and the VAT rate is 5% on a range of products.
Zero-rated supplies include:
- Medical Supplies and Equipment
- Trading in gold, silver, and platinum
- Natural Gases and Crude Oil
- Residential sold for the first time.
- Healthcare
- Exports, as well as international transportation
- Education
Exempt supplies include:
- The provision of certain financial services as defined under VAT legislation
- Residential real estate
- Vacant land
- Passenger service in the local area
Excise Tax
Excise tax is a type of indirect tax levied on things that are often damaging to people or the environment. The following items must be categorized as excise commodities: –
Tobacco-based items
- Carbonated drinks, excluding unflavored aerated water
- Electronic smoking devices and equipment
- Drinks that have been sweetened.
- An energy drink is any beverage that is promoted or sold as such and includes stimulator ingredients that provide mental and physical stimulation.
The following items are free from excise tax in the UAE:
- Standard 654 of the GCC Standardization Organization recognizes beverages for particular dietary requirements.
- Standard 1366 of the GCC Standardization Organization recognizes beverages consumed for medicinal purposes.
- Beverages that are ready to drink (with at least 75 percent milk or milk substitutes)
- Baby formula or baby food
In the UAE, the excise tax percentages for qualifying items are:
- 100% on e-cigarettes and e-cigarette accessories
- Tobacco items receive 100
- For carbonated beverages, 50% is the tax
- 50% off items containing added sugar or other sweeteners
- 100% for energy drinks
What We Offer
Comprehensive tax health checks
We review your financials, assess risk areas, and identify non-compliance before the authorities do.
Tax registration & deregistration
Whether it’s VAT, Corporate Tax, or ESR, we handle all registration requirements and deregistrations when needed.
Tax return filing & compliance
Timely preparation and submission of accurate tax returns to the Federal Tax Authority (FTA), with full documentation.
Corporate tax planning
Optimize your structure and profits within the new UAE Corporate Tax regime, legally and strategically.
Tax advisory services
Our consultants keep you informed on changing laws and how they affect your operations, investments, and cash flow.
Representation in tax audits
If you’re selected for audit, we act on your behalf with the FTA, ensuring full readiness and peace of mind.
Important Taxation Insights
- The UAE’s Corporate Tax applies to businesses with profits exceeding AED 375,000, with a standard rate of 9%. Certain Freezone businesses may benefit from exemptions if conditions are met.
- Value Added Tax (VAT) is charged at 5% on most goods and services, requiring regular filing and record keeping.
- Economic Substance Regulations (ESR) mandate that companies conducting certain activities maintain a substantial economic presence in the UAE.
- Non-compliance can lead to penalties ranging from fines to suspension of trade licenses and even legal proceedings.
- Digital filing via the EmaraTax portal is mandatory. Aquarius ensures smooth submissions and compliance with electronic invoicing requirements.
Why Aquarius?
Expertise
Our team comprises seasoned tax professionals with in-depth knowledge of UAE tax laws and international best practices.
Customized Solutions
Tailoring our services to your specific needs, we provide personalized solutions that align with your business objectives.
Compliance Assurance
Rest easy knowing that your business is in full compliance with the latest tax regulations, reducing the risk of penalties.
Strategic Guidance
Beyond compliance, we offer strategic insights to help you make informed decisions that positively impact your bottom line.
FAQs
What taxes do businesses pay in the UAE?
As of 2023, businesses are subject to Corporate Tax, VAT, and may also fall under ESR or AML rules. Aquarius helps you stay compliant across all fronts.
How do I register my business for tax in the UAE?
You need to register with the FTA through the EmaraTax portal. Aquarius handles the full process for you, accurately and on time.
Is tax mandatory for Freezone companies in the UAE?
It depends on your activity and income. Some Freezone companies may be subject to Corporate Tax if they earn income from the Mainland or abroad.
Can Aquarius help me reduce my tax liability?
Yes, we provide strategic tax planning to reduce your tax burden legally through proper structuring and compliance.
