UAE tax compliance checklist 2025
Stay ahead of VAT and Corporate Tax regulations with this practical guide
The UAE has introduced robust tax regulations to strengthen financial transparency. Whether you’re a business owner, freelancer, or investor, here’s your essential tax compliance checklist with deadlines to avoid penalties and ensure smooth operations:
✅ 1. Trade License & Business Information
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Keep your trade license active and renewed annually.
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Update FTA records within 20 business days if there’s any change in:
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Legal name
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Business activity
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Address
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Ownership or legal structure
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Emirates ID or passport details
- Any other renewal / update in the business or business owners / managers information
Penalty for non-compliance: AED 5,000
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✅ 2. VAT Compliance
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Register for VAT within 30 days if your taxable turnover exceeds AED 375,000.
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File VAT returns quarterly or monthly based on your VAT certificate.
VAT return due: 28th of the following month after tax period ends
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Issue valid tax invoices for all taxable sales.
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Maintain VAT-compliant books and reconcile input/output VAT monthly.
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Deregister if turnover drops below AED 187,500 or business ceases.
VAT deregistration must be filed within 20 business days of eligibility.
✅ 3. Corporate Tax Compliance
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Corporate Tax registration is mandatory for all UAE businesses (including freelancers if revenue is more than AED 1 million in a calendar year).
Deadline: Within 3 months from the date of trade license issuance
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File Corporate Tax Return within 9 months from the end of your financial year.
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Example: If year ends on 31 December 2024 → return due by 30 September 2025
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Prepare and retain audited financial statements (required for companies with revenue > AED 50M).
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Disclose related party and connected person transactions if total exceeds AED 500,000 annually.
✅ 4. Bookkeeping & Record Retention
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Keep accounting records e.g. invoices, delivery notes, communications, VAT documents, and tax returns for at least 7 years.
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Ensure your accounting system is FTA-compliant and audit-ready.
✅ Penalties to Watch For:
| Non-Compliance Area | Penalty Amount |
|---|---|
| Late VAT return filing | AED 1,000 – AED 2,000 |
| Failure to update FTA records | AED 5,000 |
| Delay in corporate tax registration | AED 10,000 |
| Improper record keeping | AED 10,000+ |
📝 Final Tip
Regularly reviewing your tax obligations and deadlines can save you from costly penalties. Consider conducting quarterly internal reviews or engaging a professional to ensure complete compliance.
