Rate: 5% on taxable supplies in UAE

Mandatory threshold: AED 375,000 annual taxable turnover — you MUST register

Voluntary threshold: AED 187,500 — you CAN register early (useful if you have VAT-registered UAE clients)

Export clients (UK, EU): Zero-rated at 0% — no VAT charged but must be documented as export of services

UAE clients: 5% VAT must be charged and remitted to FTA quarterly

Late registration fine: AED 20,000

Late filing fine: AED 1,000 first offence, AED 2,000 repeat

💡 Once you cross AED 375,000, you have 30 days to register with the FTA via the EMARAT portal

Rate: 9% on net profit above AED 375,000

Free zone: 0% if you qualify as a Qualifying Free Zone Person — check with your authority

Small Business Relief: If revenue < AED 3,000,000 you can elect 0% CT — must elect annually when filing

FTA Registration: MANDATORY for all companies even if profit is zero

Filing deadline: 9 months after financial year end (e.g. Jan–Dec year → file by 30 Sep next year)

Penalty — not registering: AED 10,000

Penalty — late filing: AED 500/month first year, AED 1,000/month after

💡 Action now: Register with FTA even if you owe nothing. Register via the EMARAT portal → Corporate Tax → Register

Must be renewed annually. Late renewal incurs daily fines. Ensure your activity codes cover "digital marketing", "web design", and "IT consulting". Cost ~AED 19,000.

All UAE companies must maintain a UBO register for anyone owning 25%+ of the company. Must be filed with your licensing authority and updated annually or on any ownership change. Fine: AED 100,000 for non-compliance.

Digital agencies generally do NOT fall under ESR categories. Applies to: banking, insurance, IP holding, shipping, HQ activities. Verify your licence activity code is not in scope. Fine if applicable and not filed: AED 50,000 first year.

UAE federal law effective September 2023. You hold client data, billing info, contact details — you are subject to this. Requirements: privacy policy, data processing agreements, breach notification within 72 hours.

Typically 2 or 3-year validity for company owners. Grace period: 30 days after expiry. Overstay fine: AED 25/day. Health insurance is mandatory for Dubai visa holders.

Keep records of all transactions and client due diligence for contracts above AED 55,000. Maintain records for minimum 5 years. Report suspicious transactions to UAE FIU.

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