Gold and jewellery trading companies in the UAE, from Deira gold souk shops to DMCC bullion desks, must register for Corporate Tax and file a return even with low profit. Tax is 9% on taxable income above AED 375,000. Returns for years ending 31 December 2025 are due by 30 September 2026, and stock must be valued by weight and purity.
- Your company sells gold, diamond or gemstone jewellery, or trades bullion and coins
- Your shop sits in a gold souk, a mall or the DMCC, or you supply retailers wholesale
- You hold unfixed gold from a bank or supplier, or borrow metal rather than cash
- Your 2025 year ended on 31 December and the Corporate Tax return is not filed
Not sure where you stand? Get a free 15-minute review or ask us on WhatsApp.
Do gold and jewellery traders have to register for Corporate Tax?
Yes. A gold or jewellery business run through a UAE company must register for Corporate Tax and file every year, whatever its revenue or margin. Only an individual trading in their own name escapes it, and only until business turnover passes AED 1M in a calendar year.
Use this table to see which rule bites for your set-up as of September 2026.
| Set-up | Corporate Tax | VAT |
|---|---|---|
| Mainland jewellery shop (LLC) | Registers and files; 9% on taxable income above AED 375,000 | Registers once taxable supplies and imports pass AED 375,000 in 12 months |
| Sole establishment owned by an individual | Only once business turnover exceeds AED 1M in a calendar year; register by 31 March of the next year | Same AED 375,000 mandatory threshold; voluntary from AED 187,500 |
| Shop with revenue up to AED 3M | Can elect Small Business Relief for periods ending on or before 31 December 2029; still files | Unaffected by the relief |
| DMCC or other free zone bullion trader | 0% only on qualifying income as a Qualifying Free Zone Person, with audited accounts | Investment-grade gold of 99% purity or more is zero-rated |
A jeweller with AED 3.5M of sales but a small profit cannot use Small Business Relief, because the test is revenue, not profit. That shop files a full calculation and relies on the AED 375,000 0% band instead.
How is gold and jewellery stock valued for Corporate Tax?
Stock is valued in your financial statements, and taxable income starts from that profit, so the year-end gold count directly changes the tax bill. For a jeweller that means valuing inventory by grams and purity at cost, and writing it down only where it is worth less than cost.
Counting by grams and carat, not by pieces
A tray of 40 bangles tells the FTA nothing. The count sheet has to show gross weight, stone weight deducted, net gold weight and purity (24, 22, 21 or 18 carat), converted to fine gold. That fine-gold figure is what ties your purchases from refiners and wholesalers to your sales and your closing stock.
Inventory is normally carried at the lower of cost and net realisable value. A rising gold price at 31 December does not add a profit on unsold stock, but a sharp fall can require a write-down. Our inventory accounting guide covers the valuation methods in detail.
Making charges versus metal value
Your invoice usually splits the price into metal value at the day’s rate, making charges and stone value. For Corporate Tax all three are revenue, but tracking them separately shows where the margin really comes from and makes a low declared profit easier to defend.
| Price element | Corporate Tax treatment | What to record |
|---|---|---|
| Gold metal value | Revenue, matched against the cost of the fine gold sold | Grams, purity and the rate used on the sale date |
| Making charges | Revenue; often the main source of gross margin | Charge per gram or per piece, and any discount given |
| Stones and diamonds | Revenue, matched against stone cost | Certificate numbers and carat weight |
| Old gold taken in exchange | Reduces cash received but is still a purchase of stock | Weight, purity and value credited to the customer |
For VAT the split matters too: investment gold at 99% purity or more is zero-rated, while finished jewellery is standard-rated at 5%. Our existing precious metals VAT guide explains that side.
How do gold loans, AML duties and family supply affect a jeweller's tax return?
These three areas decide whether a gold trader’s return survives an FTA review: unfixed metal shows up as a liability that moves with the gold price, AML records support where cash came from, and family supply prices must be at arm’s length.
Gold loans and unfixed positions
Many shops take metal from a bank or wholesaler on an unfixed basis and fix the price later. Until it is fixed you owe grams, not dirhams, so the liability is revalued at the gold rate on 31 December. If gold rose during the year, that revaluation is a loss in the accounts; if it fell, it is a gain.
Ignoring the open position overstates or understates profit and makes the return incorrect. Record every unfixed lot with its weight, purity and supplier statement, and reconcile it to the supplier’s year-end confirmation.
AML and goAML for dealers in precious metals
Dealers in precious metals and stones are Designated Non-Financial Businesses and Professions under the UAE’s AML law, now Federal Decree-Law No. 10 of 2025 (in force since 14 October 2025), and they must register on goAML, the reporting portal run by the UAE Financial Intelligence Unit, to file suspicious transaction reports. goAML is not a tax filing, but the customer identification and cash records it forces you to keep are the same evidence that supports your sales figures. Read our UAE AML compliance guide for the obligations.
Supply from the family business
Buying stock from a brother’s wholesale company, paying rent to a parent for the shop, or lending gold between family entities are all connected-person transactions. Prices must match what unrelated parties would agree, and they are declared on the transfer pricing disclosure form filed with the Corporate Tax return. A full master file and local file is only required at AED 200M entity revenue or AED 3.15B group revenue, but every trader still needs evidence of market pricing. See our guide to transfer pricing in the UAE.
How does a jewellery shop file its Corporate Tax return on EmaraTax?
A well-kept jeweller can file in a few days; one with pieces-based stock sheets should allow several weeks.
Weigh and count closing stock
Count every tray, safe and consignment at 31 December 2025 in grams and carat, and convert to fine gold.
Reconcile metal accounts
Match purchases from refiners and wholesalers, old gold bought back and sales to prove opening plus purchases minus sales equals closing fine gold.
Revalue unfixed gold
List every unfixed or borrowed lot, obtain supplier and bank confirmations, and record the year-end revaluation.
Tie sales to POS and bank
Reconcile till reports, card settlements and cash deposits to recorded revenue, including making charges and stone sales.
Review connected-person transactions
Check family supply, rent and salaries against market rates and prepare the transfer pricing disclosure.
Choose the relief
Decide between Small Business Relief (revenue up to AED 3M) and the standard calculation, or confirm Qualifying Free Zone Person status for a DMCC bullion entity.
Submit and pay on EmaraTax
Enter the financial data in the Corporate Tax return, submit it and pay the tax due by 30 September 2026.
What records does a gold trader need before filing?
The FTA can ask for these for 7 years, so keep originals and scans together.
- Year-end stock sheets showing gross weight, net weight, purity and fine gold
- Purchase invoices from refiners, wholesalers and importers, plus customs documents for imported gold
- Old gold buy-back vouchers with customer ID copies
- Unfixed gold statements and gold loan confirmations from banks and suppliers
- POS Z-reports, card settlement reports and bank deposit slips
- Agreements and invoices with family or group companies
- goAML registration confirmation and customer due diligence files
- Trade licence, Corporate Tax registration certificate and VAT certificate
Which tax dates matter for gold and jewellery traders?
For most jewellers the next hard date is 30 September 2026, when Corporate Tax returns for December 2025 year ends fall due.
| Deadline | Obligation | Applies to |
|---|---|---|
| 30 September 2026 | Corporate Tax return and payment | Companies with a 31 December 2025 year end |
| 31 March 2027 | Corporate Tax registration | Individual jewellers whose 2026 business turnover exceeds AED 1M |
| 28th after each VAT quarter | VAT 201 return and payment | VAT-registered shops and bullion traders |
| 31 March 2027 | Appoint an e-invoicing Accredited Service Provider | Businesses with revenue under AED 50M (go live 1 July 2027) |
| 30 October 2026 | Appoint an e-invoicing Accredited Service Provider | Traders with revenue of AED 50M or more (go live 1 January 2027) |
What are the Corporate Tax penalties for jewellery businesses in 2026?
Penalties come from Cabinet Decision 75/2023 as amended, and a stock-heavy business is most exposed to the records and incorrect return lines.
| Failure | 2026 penalty | How jewellers trigger it |
|---|---|---|
| Registering late | AED 10,000 (waived if the first return is filed within 7 months of the first period end) | Family-run shop assuming Corporate Tax only applies to big groups |
| Filing the return late | AED 500 a month for 12 months, then AED 1,000 a month | Stock count not finished in time |
| Paying late | 14% a year, calculated monthly | Cash tied up in stock on 30 September |
| Incorrect return | From AED 500, plus 1% a month on the tax difference | Unfixed gold ignored or closing stock understated |
| Not keeping records | AED 10,000, or AED 20,000 for a repeat within 24 months | Handwritten weight books lost or thrown away |
A penalty rarely comes alone. An illustrative Deira shop that files 9 months late with AED 20,000 of tax owed pays 9 x AED 500 = AED 4,500 for late filing and AED 20,000 x 14% x 9 / 12 = AED 2,100 in late payment charges. If the FTA then finds the stock sheets missing, AED 10,000 more is added. More detail is in the Corporate Tax penalties guide.
Worried a penalty is already running?
If your 2025 stock count or unfixed gold position is not finished, we can show you in 15 minutes what the return needs and what a delay would cost.
5 Corporate Tax mistakes gold and jewellery traders make
We see the same errors in jewellery books every filing season.
- Stock counted by pieces, not weight. Without grams and purity the closing stock cannot be verified, so profit is unsupported and the records penalty is in play.
- Unfixed gold positions ignored. Leaving borrowed metal at its original value misstates the liability and the profit, which makes the return incorrect.
- goAML never registered. It is an AML duty rather than a tax one, but missing customer files leave cash sales without the evidence an FTA officer will look for.
- Old gold purchases paid in cash with no voucher. Unrecorded buy-backs inflate apparent margin or create unexplained stock, both of which undermine the return.
- Family wholesale prices set by habit. Paying a relative’s company above market shifts profit and fails the arm’s length rule, so the excess can be added back to taxable income.
- Electing Small Business Relief above AED 3M. Revenue including metal value is what counts, so a busy shop with modest profit is often over the limit.
How can jewellery traders stay clear of FTA penalties?
A fixed routine keeps the metal account, the cash and the tax return telling the same story.
- Daily: record buy-backs and sales with weight, purity and the gold rate used
- Monthly: reconcile fine gold in against fine gold out and investigate any gap
- Monthly: match POS, card settlements and cash deposits to the ledger
- Quarterly: obtain unfixed gold statements from every supplier and bank
- Quarterly: file VAT 201 by the 28th, separating zero-rated investment gold from standard-rated jewellery
- Annually: weigh all stock at year end with a second person signing the sheet
- Annually: decide Small Business Relief, the 0% band or Qualifying Free Zone Person status before preparing the return
- Annually: have a qualified accountant review family transactions and the return before submission
Missed the deadline or received an FTA penalty as a gold trader?
Submit the overdue return first, even if the stock valuation is still being finalised with your accountant, because each extra month adds AED 500. Pay the tax straight after to stop the 14% a year charge.
If you spot an error in a return already filed, such as an unfixed gold position left out, disclose it voluntarily before the FTA contacts you. To challenge a penalty, file a reconsideration request within 40 business days of the decision; if the FTA rejects it, the next step is the Tax Disputes Resolution Committee.
Our reconsideration request guide sets out the wording and evidence, and the guide to a missed Corporate Tax deadline lists what to do this week.
Got an FTA notice or missed the deadline?
Send us the notice and your last stock sheet and we will explain the next step, including reconsideration within 40 business days.
Worked example: an illustrative gold souk jewellery shop
Consider an illustrative Dubai gold souk jewellery shop, a mainland LLC with AED 2.4M revenue in 2025 and accounting profit of AED 520,000 after its unfixed gold revaluation. Revenue has never exceeded AED 3M.
| Item | Elect Small Business Relief | Standard Corporate Tax |
|---|---|---|
| Sales including making charges | AED 2,400,000 | AED 2,400,000 |
| Accounting profit | AED 520,000 | AED 520,000 |
| Income in the 0% band | Not relevant: treated as no taxable income | AED 375,000 |
| Income taxed at 9% | AED 0 | AED 520,000 minus AED 375,000 = AED 145,000 |
| Tax payable | AED 0 | AED 13,050 |
| Return due | 30 September 2026 | 30 September 2026 |
| Late filing cost if 4 months late | AED 2,000 | AED 2,000 plus AED 609 late payment (AED 13,050 x 14% x 4 / 12) |
Now suppose the same shop had left AED 150,000 of unfixed gold loss out of its accounts. Profit would read AED 670,000, and the standard calculation would give 9% x AED 295,000 = AED 26,550, overpaying by AED 13,500. Mistakes on unfixed metal cut both ways. Our Small Business Relief guide explains the election.
Gold trader tax filing: DIY, a freelancer or an accounting firm?
Filing yourself only works if your metal account already reconciles; most jewellers with unfixed gold or family supply benefit from an accountant who understands weight-based stock.
| Route | Cost | Your time | Risk | Best for |
|---|---|---|---|---|
| DIY on EmaraTax | No fee | High during stock count season | High: valuation and unfixed gold errors | Tiny shop with no borrowed metal |
| Freelance accountant | Typical market range: usually below a firm, varies widely | Medium | Medium: depends on gold trade experience | Single shop with simple purchases |
| Paci accounting team | Fixed quote within 24 hours; bookkeeping from AED 599/month | Low | Lower: return reviewed by qualified accountants | Multi-branch jewellers, bullion desks, family groups |
If you want the stock ledger fixed as well as the return, read accounting for jewellery shops. For the filing itself, our Corporate Tax return filing service starts with a free 15-minute review.
What gold and jewellery traders actually ask us
Real questions from trading business owners, answered against the rules in force in September 2026.
Our free zone company imports goods from overseas manufacturers and sells to a mainland UAE company. Does the mainland income change our Corporate Tax?
It can. Income from mainland customers is generally non-qualifying for a Qualifying Free Zone Person. If non-qualifying revenue goes above the lower of AED 5M or 5% of total revenue, the company loses the 0% rate and pays 9% for that period and the next 4. How goods shipped straight to a mainland buyer are treated depends on the facts, so have the flows reviewed before you file.
What records should I keep from day one so my company's tax position holds up?
Keep full books from the start: invoices, bank statements, stock sheets and contracts, held for 7 years. Missing records cost AED 10,000, or AED 20,000 for a repeat. Also log every payment to owners, directors and their relatives, because those must be at arm’s length and are disclosed with the Corporate Tax return.
A relative registered for VAT years ago and ended up with heavy penalties. What should I check before I register?
Check whether you actually cross the mandatory threshold of AED 375,000 in taxable supplies and imports over 12 months; voluntary registration starts at AED 187,500. Once registered, every VAT return is due by the 28th after the period, nil returns included, and each late one costs AED 1,000, or AED 2,000 for a repeat within 24 months.
I registered late and filed my first return one month after the 7-month waiver window. Is it worth requesting reconsideration of the AED 10,000?
For a first tax period ending 31 December 2025, the 7-month window closed on 31 July 2026, so an August filing falls outside the waiver. You can still file a reconsideration request within 40 business days of the penalty decision explaining the circumstances, and escalate to the Tax Disputes Resolution Committee if it is refused. There is no promised outcome, but a clear, documented request costs little.
What are the Corporate Tax rules people usually miss?
Registration and filing are separate duties. Late registration is a flat AED 10,000, waived only if the first return is filed within 7 months of the end of the first tax period, while the return itself is due 9 months after the year end. Check your own registration deadline against your licence date rather than relying on a general rule.
Frequently asked questions
Do gold souk shops pay Corporate Tax in Dubai?+
Yes, if the shop is run through a company. It must register with the FTA and file a Corporate Tax return every year, paying 9% on taxable income above AED 375,000. A shop with revenue up to AED 3M can elect Small Business Relief and pay nothing for periods ending on or before 31 December 2029, but it still files.
Is jewellery business income taxed differently from bullion trading in the UAE?+
Not for Corporate Tax: both are business income taxed at 9% above AED 375,000. The difference is in VAT, where investment-grade gold at 99% purity or more is zero-rated and finished jewellery is standard-rated at 5%. A bullion trader in a free zone may also qualify for 0% as a Qualifying Free Zone Person if it meets every condition.
How should a jeweller value closing stock for the Corporate Tax return?+
Count stock by net gold weight and purity, convert it to fine gold and value it at cost, writing it down only where it is worth less than cost. Keep signed count sheets, because the FTA can ask for the evidence for 7 years. Our Corporate Tax return filing guide shows where stock feeds into the return.
Are losses on unfixed gold deductible for Corporate Tax?+
A loss recorded in properly prepared financial statements on revaluing unfixed or borrowed gold normally flows into accounting profit, which is the starting point for taxable income. The position must be backed by supplier or bank statements showing grams owed and the year-end rate. Treat gains the same way in years when the price falls.
Does a jewellery shop in a family group need transfer pricing documents?+
Every business must be able to show that prices with connected persons, such as a relative’s wholesale company or a landlord who is a shareholder, are at arm’s length, and must file the transfer pricing disclosure form with its return. The full master file and local file only apply at AED 200M entity revenue or AED 3.15B group revenue.
What is the penalty if a gold trading company files its Corporate Tax return late?+
AED 500 for each month of the first 12 months the return is late, then AED 1,000 a month, plus 14% a year on unpaid tax calculated monthly. If the company also registered late and misses the waiver window, AED 10,000 is added. The Corporate Tax guide for trading companies covers related stock issues.
Can a DMCC gold trading company pay 0% Corporate Tax?+
It can if it is a Qualifying Free Zone Person: adequate substance, audited financial statements, qualifying income, non-qualifying revenue within the lower of AED 5M or 5% of revenue, and transfer pricing compliance. Sales to mainland retailers and individuals are generally non-qualifying. Our DMCC Corporate Tax filing guide explains the zone’s position.
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- FTA: Waiver of Penalties
- FTA: Registration for VAT
- Ministry of Finance: Small Business Relief decision
- UAE Legislation: Cabinet Decision 116 of 2022 (AED 375,000 threshold)
Checked against these sources on 15 September 2026. This guide is general information for UAE businesses, not advice on your specific facts.