Navigating the UAE’s Evolving Tax Landscape
For years, the UAE was known for its tax-free environment. That has changed. With the introduction of Value Added Tax (VAT) in 2018 and UAE Corporate Tax in 2023, the regulatory landscape is evolving quickly—and businesses must adapt.
Whether you are a startup, a free zone company, or multinational,staying on top of UAE tax laws is essential. At Affiniax Partners, we help businesses stay compliant,minimise tax risks, and optimize your financial performance through expert tax and VAT advisory services in Dubai and across the UAE.
Corporate Tax in the UAE
The UAE introduced a 9% federal corporate tax on business profits above AED 375,000, making it vital for companies to reassess structures, contracts, and compliance frameworks.
Our Corporate Tax services in Dubai include:
- Corporate Tax Registration & Filing – Ensuring your business is registered and filings are accurate, timely, and compliant with Ministry of Finance (MoF) guidelines.
- Tax Advisory & Structuring – Helping businesses design tax-efficient structures, especially across free zones, mainland entities, and international holdings.
- Transfer Pricing Compliance – Advising multinational groups on arm’s length transactions and proper documentation.
- Tax Risk Assessments – Identifying potential gaps that could lead to tax penalties or disputes.
For example, many businesses initially assumed free zones were exempt from corporate tax. While there are incentives available, not every company qualifies as a “Qualifying Free Zone Person.” Understanding these details early can save businesses from unexpected tax bills.
VAT in the UAE
Since VAT at 5% was introduced, compliance has become an essential part of business’s financial operations. Errors in filing or misclassification of expenses can result in penalties and cashflow issues.
Our VAT Advisory Services in Dubai cover:
- VAT Registration & Deregistration – Ensuring businesses are correctly registered when they meet thresholds, or deregistered when applicable.
- VAT Filing & Returns – Preparing and submitting accurate VAT returns, avoiding costly mistakes.
- VAT Health Checks – Reviewing your current VAT compliance to identify risks and opportunities for savings.
- Advisory on Complex VAT Issues – Guidance on real estate transactions, cross-border supplies, imports/exports, and group VAT registration.
Example: A company selling goods across GCC borders thought VAT didn’t apply because their clients were outside the UAE. In reality, special rules on “place of supply” meant they were liable for VAT. Situations like this highlight why professional guidance matters.
Why Choose Affiniax Partners for Tax & VAT Advisory?
- Local Knowledge, Global Standards – Deep understanding of UAE regulations, aligned with international best practices.
- Proactive Approach – We don’t just file returns; we help you plan ahead, structure transactions, and reduce exposure.
- All-in-One Support – From corporate tax planning to VAT audits and risk management compliance, our team covers the full spectrum of tax needs.
The Bottom Line
Tax may be new to the UAE, but it’s here to stay—and it’s evolving. Businesses that prepare early, stay compliant, and optimise their structures will have a significant advantage in today’s competitive environment.
At Affiniax Partners, we make Tax and VAT compliance in the UAE simple, strategic, and stress-free.
READ OUR LATEST TAX SERVICES BLOGS
Frequently Asked Questions (FAQs)
1. What services does your firm offer related to UAE and other GCC tax compliance?
Our firm provides a comprehensive range of services, including:
- Tax Registration and De-registrations: Assisting businesses with VAT and corporate tax registration to ensure compliance with regulations.
- Tax Return Filing: Preparing and submitting accurate tax returns for VAT and corporate tax, ensuring timely compliance with FTA deadlines.
- Tax Refunds: Helping clients navigate the process for claiming VAT refunds, ensuring all requirements are met for a successful claim.
- Tax Health Check: Conduct assessments to evaluate your tax compliance status and identify potential risks or areas for improvement.
- Ongoing Compliance Support: Providing guidance on maintaining compliance with tax laws, including record-keeping and documentation requirements.
- Statutory Matters: Assisting with appeals against tax assessments and preparing private clarification requests or advance ruling to the tax authority for specific tax matters.
2. How does your firm assist with tax registrations?
We help businesses determine their eligibility for the relevant tax registration, prepare the necessary documentation, and submit the application to the Federal Tax Authority (FTA), ensuring a smooth registration process.
3. What is included in your tax return filing services?
Our tax return filing services encompass:
- Comprehensive review of financial records.
- Calculation of VAT or corporate tax liabilities.
- Preparation and submission of tax returns.
- Coordination with tax authorities for any queries or follow-ups.
4. What ongoing compliance support do you provide?
We offer ongoing compliance support, including:
- Regular updates on changes to tax legislation.
- Assistance with maintaining accurate records.
- Training for staff on VAT and corporate tax compliance requirements.
5. What advisory services do you offer?
Our advisory services include:
- Tax Planning: Developing strategies to minimize tax liabilities while ensuring compliance.
- International Tax Advisory: Providing guidance on cross-border tax issues and optimizing tax positions in multiple jurisdictions.
- Economic Substance Regulation Advisory: Helping businesses understand and comply with ESR requirements.
- Transfer Pricing Advisory: Offering expertise in establishing and reviewing transfer pricing policies and documentation.
- Tax Impact and Gap Assessment: Conducting analysis to evaluate the impact of VAT and corporate tax regulations on your business, dentifying any compliance gaps.
- Implementation Support: Assisting with the implementation of tax strategies and ensuring adherence to VAT and corporate tax regulations.
6. Can you help with tax audits?
Yes, we provide support throughout the tax audit process, including:
- Preparing for audits by organizing documentation.
- Representing clients during audits.
- Assisting in resolving any disputes that arise from audit findings.
7. What steps do you take to ensure accurate tax filings?
We follow a systematic process that includes:
- Conducting thorough reviews of financial records.
- Using specialized software to calculate tax liabilities.
- Ensuring compliance with the latest tax regulations and guidelines.
8. What services do you provide for Economic Substance Regulation (ESR) compliance?
Our firm offers comprehensive support for ESR compliance, including:
- ESR Assessment: Evaluating your business activities to determine if they fall within the scope of ESR requirements and identifying any necessary actions.
- Filing of Notifications: Assisting with the preparation and submission of the annual notification to the relevant authorities, ensuring compliance with deadlines.
- Preparation of ESR Reports: Helping businesses prepare detailed reports to demonstrate compliance with ESR requirements, including documenting the economic substance of relevant activities.
9. How can your firm assist with transfer pricing documentation?
Our transfer pricing services include:
- Conducting a transfer pricing study to analyze intercompany transactions.
- Preparing transfer pricing documentation to support the arm’s length principle.
- Advising on best practices for structuring transactions to mitigate tax risks.
10. What is tax due diligence, and how can you assist with it?
Tax due diligence involves reviewing a company’s tax position and compliance as part of a merger, acquisition, or investment process. Our firm can assist by:
- Conducting a comprehensive analysis of tax liabilities and exposures.
- Evaluating compliance with tax regulations.
- Identifying potential tax risks that could impact the transaction.
11. What should I expect during the initial consultation?
During the initial consultation, we will:
- Discuss your specific business needs and challenges.
- Review your current tax compliance status.
- Outline how our services can help you achieve compliance and optimize your tax position.
12. What industries do you specialize in?
We work with a diverse range of industries, including but not limited to:
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- Manufacturing
- Retail and E-commerce
- Real Estate and Construction
- Technology and Telecommunications
- Healthcare and Pharmaceuticals
- Hospitality and Tourism
- Financial Services
- Energy and Utilities
- Logistics and Transportation
- Media and Entertainment
- Professional Services
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Our team is equipped to address the unique tax challenges and compliance requirements specific to each industry, ensuring tailored solutions that meet your business needs.
13. What is the process for engaging your services?
To engage our services, simply contact us through our website or call our office. We will schedule a consultation to discuss your needs, after which we will provide a tailored service proposal.
