Dubai · UAE — GST +4
Services · Accounting

Accounting in the UAE

Since corporate tax arrived, "we'll sort the books later" became the most expensive sentence in the Emirates. We run FTA-ready books at published monthly rates — the same discipline we apply to our own entity.

UAE bookkeeping is now a tax obligation, not housekeeping. Corporate tax runs at 9% on profit above AED 375,000 and 0% below, every taxable person must file, VAT registration is mandatory over AED 375,000 turnover, and structured e-invoicing phases in from July 2026. Even a free zone company on 0% keeps that rate only with audited books. We keep FTA-ready books at published monthly rates — and run our own UAE entity under exactly these rules, so the calendar we manage for you is the calendar we live.

Key takeaways
  • Every taxable person registers for corporate tax and files a return — free zone companies on 0% included.
  • Corporate tax is 9% above AED 375,000 profit; Small Business Relief zeroes taxable income for revenue ≤ AED 3M through periods ending 31 December 2026.
  • VAT registration is mandatory over AED 375,000 turnover, voluntary from AED 187,500; returns are usually quarterly.
  • QFZP 0% survives only with audited accounts and de-minimis discipline — non-qualifying revenue below the lower of AED 5M or 5% of total revenue.
  • Structured e-invoicing phases in from July 2026 — clean invoice data set up now serves every filing at once.

What changed, and why books matter now

Every taxable person must register for corporate tax and file a return — including free zone companies claiming 0%, whose QFZP status explicitly depends on audited financial statements and transfer-pricing discipline. Corporate tax runs at 9% on profit above AED 375,000 and 0% below, but the rate is meaningless without books that prove which side of that line your profit sits on.

Add VAT — mandatory once taxable turnover passes AED 375,000, voluntary from AED 187,500 — and structured e-invoicing phasing in from July 2026, and bookkeeping stopped being optional hygiene. Three separate filings now read from one ledger, so the ledger is the product.

The FTA's penalty schedule makes the point in dirhams: late registrations and late filings carry fixed fines that routinely exceed a year of decent bookkeeping. Cheap chaos is not cheap.

What "FTA-ready" actually means

FTA-ready is not a folder of receipts. It means IFRS-based records kept monthly, a chart of accounts mapped to how the corporate tax return is actually computed, VAT input and output tax tracked at invoice level, and year-end files an auditor can sign without a scramble. The test is simple: if the FTA asked tomorrow, could you produce the number and the trail behind it in days rather than weeks?

The distinction that trips people is profit versus revenue. The AED 375,000 threshold and the corporate tax computation run on profit; the VAT and QFZP de-minimis tests run on revenue. Books that blur the two — or live only in a spreadsheet nobody reconciles — cannot answer either question cleanly.

The compliance calendar you are now on

Once you are registered, you are on a fixed rhythm, and missing a date is not a judgment call — the fines are automatic. The point of the table below is that every line reads from the same monthly books.

ObligationThreshold / triggerTypical cadence
Corporate tax returnEvery taxable person, above and below AED 375,000 profitOnce per financial year, within 9 months of period end
VAT returnMandatory over AED 375,000 turnover (voluntary from AED 187,500)Quarterly (some monthly)
Payroll / WPSAny company with employeesMonthly salary transfer via WPS
Audited financial statementsQFZP status and zones or sizes that require itAnnually
E-invoicingPhased in from July 2026 by company sizePer invoice, in real time

Model the corporate tax line in our corporate tax calculator; keeping every other line correct is the monthly bookkeeping the calculator assumes.

What we run each month

Monthly IFRS bookkeeping in cloud software you can see (Zoho, Xero, QuickBooks — your call), with you holding owner access. Payroll with WPS where staff exist, and end-of-service gratuity accrued rather than discovered when someone resigns. VAT returns prepared and filed, corporate tax computed and filed, and audit-ready year-end files for the zones and statuses that require an audit.

One monthly figure, published below, adjusted only when volume genuinely changes. Where you need only the ledger without the filings, our bookkeeping service is the narrower engagement; the corporate tax and VAT filings run on the very same books, so nothing is entered twice.

Free zone 0% is a bookkeeping outcome

The single most expensive misunderstanding we correct is that a free zone licence delivers 0% by itself. It does not — a Qualifying Free Zone Person keeps 0% on qualifying income only with adequate substance, audited accounts, transfer-pricing documentation, and non-qualifying revenue held below the de-minimis limit, the lower of AED 5M or 5% of total revenue. Cross that line unnoticed and the whole period drops to 9%, for that year and the following four.

Every one of those conditions is monitored in the books, not the licence. The common leak is mainland revenue drifting past de-minimis while nobody reconciles monthly. Which door keeps you at 0% — the threshold, Small Business Relief, or QFZP — is worked through in our guide on who still really pays 0%; keeping it is a monthly reconciliation.

Cleaning up a backlog without fiction

Handovers from shoebox accounting are routine for us. We rebuild backlogs quarter by quarter at a quoted fixed price, working from bank statements, and we tell you plainly which periods are reconstructible from records and which are estimates that must be disclosed as such. The FTA distinguishes reconstructed figures from invented ones, and so do we.

How we price it — and why our own books look the same

One published monthly figure, listed below, moves only when transaction volume genuinely changes — no surprise line items, no "establishment file" appearing three months in. You hold owner access to the accounting software throughout, so the books are yours to take if you ever leave; we decline the industry habit of holding client records hostage in the accountant's own system.

We run our own UAE entity under exactly these rules — same corporate tax return, same VAT filings, same audit. The calendar we manage for you is the calendar we live, which is the only endorsement of a bookkeeping process that means anything.

Published rates

Bookkeeping, up to 50 transactions/mofrom AED 750/mo
Bookkeeping, up to 200 transactions/mofrom AED 1,800/mo
VAT return, quarterlyfrom AED 600
Corporate tax returnfrom AED 2,500/yr

Straight answers

Do free zone companies need accounting if tax is 0%?
Especially then. QFZP status — the thing granting the 0% — requires audited accounts and proper records; lose the records and you lose the rate. A 0% regime with no books is a 9% regime with penalties, delayed.
Which software do you use?
Yours, ideally: Zoho Books, Xero or QuickBooks, with you holding owner access. We refuse the industry habit of holding client books hostage in the accountant's own system.
Can you fix several years of backlog?
Yes — priced per reconstructed period after we see the bank statements. We state plainly which figures are reconstructed versus estimated, because the FTA distinguishes and so should you.
When do I have to register for VAT?
Registration is mandatory once taxable turnover passes AED 375,000 over the trailing 12 months (or is expected to within the next 30 days); voluntary registration is available from AED 187,500. Returns are usually filed quarterly. Corporate tax registration is separate and required of every taxable person regardless of turnover.
How does e-invoicing change my bookkeeping?
From July 2026 the UAE phases in structured e-invoicing by company size. The practical impact is data quality — TRNs, item codes and addresses must validate, because the legal invoice becomes a structured data file rather than a PDF. Books kept cleanly now absorb the change without a scramble.
Do small companies really need an audit?
For QFZP status, audited financial statements are mandatory regardless of size. We keep the year-end file in the shape an auditor signs without a scramble, which is most of what keeps audit fees and delays down.

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