All guides

VAT vs Corporate Tax in UAE

Quick answer

VAT is a 5% tax on taxable supplies collected from customers (consumption tax). Corporate Tax is a tax on business profits at 0%/9% (income tax). Most UAE companies need to understand both after licensing.

Try the free interactive tool for this topic

Open tool

Quick decision guide

SituationResult
VAT5% on taxable supplies; TRN via EmaraTax; returns every month/quarter
Corporate Tax0%/9% on profits; separate CT TRN; annual return within 9 months of FY end

Full service page: corporate tax uae →

Last verified: June 2026

Fees and rules traced to official UAE authorities. KPM Global review cadence: monthly or on FTA/GDRFA updates.

Official source basis

Federal Tax Authority (tax.gov.ae) public guidance. KPM Global simplified this for business owners — not a substitute for official FTA advice or EmaraTax records.

Fees & rules last reviewed: June 2026

Frequently asked questions

Many growing SMEs eventually need both VAT and CT TRNs — assess separately.

Explore UAE services

Related UAE services

Vat Registration Cost UaeUae Tax Guide New CompaniesQualifying Free Zone Person UaeEmaratax Registration HelpTransfer Pricing UaeFta Tax Agent Support UaeBookkeeping Services UaeRelated accountingAccounting Firm In DubaiRelated accounting

UAE business & tax directory

Business setup & licensing

Free zones & comparisons

Visas & immigration

VAT, corporate tax & compliance

Accounting & bookkeeping

Banking & finance