Frequently Asked Questions on UAE Taxes & Tax Disputes

They include Value Added Tax (VAT), Corporate Tax, and Excise Tax on specific goods. There is no personal income tax on individuals.

It is the federal authority responsible for administering and collecting taxes in the UAE, issuing decisions and penalties, and receiving reconsideration requests through its EmaraTax platform.

EmaraTax is the FTA’s official electronic platform used for registration, return filing, payment, reconsideration requests and voluntary disclosures.

The general VAT rate is 5% on most goods and services, with certain zero-rated and exempt transactions subject to conditions.

VAT registration is mandatory when taxable supplies exceed AED 375,000, and voluntary when supplies or expenses exceed AED 187,500.

A VAT return is generally filed within 28 days from the end of the tax period, with payment due by the same deadline.

The late VAT registration penalty is AED 10,000, and tax may also apply retroactively if registration was required from an earlier date.

AED 1,000 for the first violation and AED 2,000 upon repetition within 24 months, subject to review of the latest official updates.

Effective from 14 April 2026, a penalty mechanism of 14% annually on the outstanding balance applies under Cabinet Decision No. 129 of 2025. The type of penalty and disputed period should be reviewed before taking any action.

Yes. In certain cases, a reconsideration request or objection path may be available if the facts and documents support the company’s position.

Yes. The reasons for rejection can be reviewed, and a file supported by invoices, contracts, returns and correspondence can be prepared.

A zero-rated transaction may allow input tax recovery if conditions are met. An exempt transaction generally does not allow recovery of related input tax.

It is a procedure to correct a previous error in a return or assessment, before or after discovery, and must be assessed based on the type, value and period of the error.

0% on taxable income up to AED 375,000, and 9% on taxable income exceeding that amount.

The return is filed and payment is made within 9 months from the end of the company’s financial year.

Yes. Registration is required for most taxable persons according to the applicable schedules and decisions, even if income is low.

It is a relief available to resident persons where revenue does not exceed AED 3 million, for periods starting on or after 1 June 2023 and ending on or before 31 December 2026, subject to conditions.

No. To benefit from the 0% rate on qualifying income, the company must meet the conditions of a Qualifying Free Zone Person (QFZP).

Income classification, dealing with the mainland, economic substance, related parties, and the non-qualifying income threshold.

Transfer pricing rules require related-party transactions to be conducted under the arm’s length principle, as if they were between independent parties.

According to the current FTA service page, a reconsideration request must be submitted within 40 business days from the date of the FTA decision.

It may take up to 45 business days from receiving the complete request, and the period may be extended in certain cases.

Yes. The request and its reasons must be in Arabic or comply with the official requirements in force.

It is the competent body for tax disputes after the reconsideration stage, operating under the supervision of the Ministry of Justice according to the legal framework governing it.

Generally within 40 business days from notification of the FTA decision after reconsideration, subject to acceptance requirements, including payment or guarantee when applicable.

Yes, in certain cases after the Committee’s decision, an appeal may be filed before the competent court subject to deadlines and conditions, especially where the dispute exceeds AED 100,000.

Generally, audit or assessment periods may extend to 5 years, and may reach 15 years in cases such as evasion or failure to register under the law.

Do not respond quickly without review. Identify the scope of the request, prepare documents, review risks, and submit an organized response.

This may be possible in certain cases and under specific conditions, including correcting the violation and submitting supporting documents.

It is a tax applied to specific goods such as tobacco products, carbonated drinks, energy drinks and other goods specified by law.

Yes. The FTA decision, penalty or classification can be reviewed and the suitable path may include reconsideration or objection.

The FTA decision, TRN, tax returns, invoices, contracts, bank statements, EmaraTax correspondence and a short factual explanation.

Send the decision, notice or penalty through WhatsApp or email. We will conduct an initial review and suggest the suitable path.