Every DMCC company must be registered for UAE Corporate Tax and file a return, due 30 September 2026 for a 31 December 2025 year end, even with no revenue. Income can be taxed at 0% only if the company is a Qualifying Free Zone Person with audited accounts and non-qualifying revenue within the lower of AED 5M or 5%; otherwise 9% applies above AED 375,000.
- Your company is licensed by DMCC, whether it trades gold, diamonds, commodities or crypto, or sells services
- You bill mainland UAE companies, individuals or overseas clients
- Your December 2025 Corporate Tax return is still open
- You want to know whether a 0% QFZP claim will survive an FTA review
Not sure where you stand? Get a free 15-minute review or ask us on WhatsApp.
Which DMCC companies must file Corporate Tax and VAT returns?
All of them for Corporate Tax, and those above the VAT threshold for VAT. A DMCC licence makes the company a free zone person, which opens the door to the 0% Qualifying Free Zone Person (QFZP) regime, but registration and an annual return with the Federal Tax Authority (FTA) apply whatever the company earns.
| DMCC profile | Corporate Tax position | VAT position |
|---|---|---|
| Dormant or newly licensed DMCC company | Registered, files a return every year | Not required below AED 375,000 of taxable supplies and imports |
| Gold, diamond or commodity trader | QFZP possible for some trading income; test each stream | Register above AED 375,000; investment-grade precious metals are zero-rated |
| Crypto or virtual asset business | QFZP hard if clients are individuals | Transfers and conversions of virtual assets are exempt |
| Consultancy or IT company billing the mainland | Usually 0% up to AED 375,000 and 9% above, or Small Business Relief | 5% on UAE services once registered |
| Individual using a DMCC address for personal freelance work | Only once business turnover passes AED 1M in a calendar year | Same AED 375,000 threshold |
If you are still choosing a structure, our DMCC company setup guide covers licensing. This page is about what happens at the FTA once the licence is issued.
When does a DMCC company qualify for 0% Corporate Tax?
A DMCC company gets 0% only on qualifying income, and only while it meets every QFZP condition: adequate substance, audited financial statements, non-qualifying revenue within the lower of AED 5M or 5% of revenue, transfer pricing compliance, and no election for the standard rate. Our QFZP guide explains each one.
Commodities, gold, diamonds and crypto: how DMCC income usually splits
| Typical DMCC income | Likely QFZP treatment | What decides it |
|---|---|---|
| Trading qualifying commodities in raw form | Can qualify | Whether the commodity and the trade meet the Ministry of Finance definition |
| Selling gold or diamonds to other free zone companies | Can qualify | Counterparty is a free zone person and the activity is not excluded |
| Selling jewellery or gold to individuals | Non-qualifying | Income from individuals is generally non-qualifying |
| Crypto services to retail users | Non-qualifying | Income from individuals is generally non-qualifying |
| Consulting or software fees from mainland companies | Non-qualifying | Income from mainland customers is generally non-qualifying |
Why a DMCC service company rarely stays within 5%
Many DMCC licences are consultancies, recruitment, marketing and IT firms whose clients sit on the mainland. For them the de minimis limit is tiny: at AED 2,000,000 of revenue it is AED 100,000, so one mainland retainer usually breaks it. Breaking it means 9% for that period and the next 4.
Small Business Relief or QFZP: DMCC companies must choose
Small Business Relief treats a resident company with revenue up to AED 3M as having no taxable income, for tax periods ending on or before 31 December 2029 under Ministerial Decision 131 (August 2026). A QFZP cannot use it. For a small DMCC consultancy that will fail the de minimis test anyway, the relief is often the simpler route; see our Small Business Relief guide.
What audit does Corporate Tax require from a DMCC company?
If the company claims QFZP status, Corporate Tax requires audited financial statements for that tax period under Ministerial Decision No. 84 of 2025, which applies to periods starting on or after 1 January 2025. The same decision requires an audit from any company with revenue above AED 50,000,000.
DMCC’s own audit rule for licence renewal, its deadline and its approved auditor list are set by the authority and can change from one cycle to the next, so confirm them directly with DMCC. Our audit requirements by free zone comparison tracks what each authority publishes, and the free zone audit guide explains how to prepare.
Plan a single audit that satisfies both DMCC and the FTA. The audited profit is the starting point of the Corporate Tax return, so a late audit usually means a rushed return.
Which DMCC supplies carry VAT, and where does designated zone treatment apply?
Services supplied by a DMCC company are standard-rated at 5% like any UAE business, and goods get special treatment only in the specific DMCC areas that appear on the FTA’s designated zone list. Registration follows the normal AED 375,000 mandatory and AED 187,500 voluntary thresholds.
Not all of DMCC is a designated zone
Only specific DMCC areas are designated, and only goods can fall outside VAT there. A consultancy in a Jumeirah Lakes Towers office gains nothing from the status, and goods leaving a designated area for a mainland buyer are within VAT. Check your unit against the FTA’s current list; our designated zones guide explains the conditions.
Gold, silver and diamonds
Investment-grade precious metals of 99% purity or more are zero-rated, while jewellery and lower-purity gold are standard-rated. Diamonds do not get the precious metals zero rate. Our guide to precious metals VAT and our post on Corporate Tax for gold and jewellery traders go deeper. Gold and diamond dealers also carry AML duties, which are separate from tax filing.
Crypto firms
Transfers and conversions of virtual assets are VAT-exempt under Cabinet Decision 100/2024, applied back to 1 January 2018, but fees for other services can still carry 5%. See VAT for crypto businesses.
Your DMCC renewal is not an FTA filing
DMCC renews the licence; it does not file or check your Corporate Tax or VAT returns. A company can hold a fully renewed DMCC licence and still owe months of FTA penalties.
How do you file a DMCC company's Corporate Tax return on EmaraTax?
The return itself takes an afternoon; the schedules behind it are where DMCC companies lose weeks.
Check the EmaraTax profile
Confirm the Corporate Tax registration, the tax period and the shareholder details. If the company never registered, register now; the AED 10,000 late registration penalty is waived when the first return is filed within 7 months of the end of the first tax period.
Map revenue by counterparty and activity
Label each income line: free zone counterparty, mainland company, individual or overseas, and the activity behind it (commodity trade, jewellery sale, crypto fee, advisory). This drives the QFZP test.
Run the de minimis test
Add up non-qualifying revenue and compare it with the lower of AED 5M or 5% of total revenue. If it fails, the company files at the standard rates or elects Small Business Relief where eligible.
Finalise the audited statements
A QFZP claim needs audited financial statements for the period. Reconcile stock by weight and purity for bullion and jewellery, and wallet balances for crypto, before the auditor signs.
Prepare the transfer pricing disclosure
List payments to shareholders, directors, relatives and group companies and confirm each is at arm’s length. A master file and local file are needed only at AED 200M entity revenue or AED 3.15B group revenue.
Enter the return and pay
Complete the return from the audited figures, choose the regime and pay any tax by 30 September 2026 for a December 2025 year end. Keep all working papers for 7 years.
Our Corporate Tax filing service prepares the QFZP schedule, transfer pricing disclosure and return together on a fixed quote.
What records should a DMCC company have ready before filing?
Most of these also go to the auditor, so collect them once.
- DMCC licence, share register and each shareholder’s country of tax residency
- Audited financial statements if claiming QFZP
- Revenue listing by customer, with free zone, mainland, individual or overseas status
- Stock records by weight and purity for gold, silver and diamonds
- Exchange or wallet statements for any virtual assets held or traded
- Office lease, headcount and payroll that show substance in DMCC
- Related party payments with how each price was set
- VAT 201 returns and the designated zone movement records for goods
DMCC tax calendar: which dates should you diarise?
For a December year end the date that matters most right now is 30 September 2026, which is only days away as of 15 September 2026.
| What | When | Note |
|---|---|---|
| Corporate Tax return and payment | 30 September 2026 | Year ended 31 December 2025 |
| Corporate Tax return, other year ends | 9 months after year end | Same for QFZP and standard rate |
| VAT 201 return and payment | 28th of the month after each period | Quarterly by default |
| E-invoicing ASP appointment | 30 October 2026 at AED 50M revenue or more; 31 March 2027 below | Go live 1 January 2027 or 1 July 2027 |
| Reconsideration of a penalty | 40 business days from the decision | Then the Tax Disputes Resolution Committee |
| DMCC licence renewal and audit submission | Set by DMCC | Confirm with the authority each cycle |
Which penalties apply to DMCC companies as of September 2026?
Corporate Tax penalties are set by Cabinet Decision 75/2023 as amended, VAT penalties by Cabinet Decision 129/2025 from 14 April 2026, and the loss of QFZP status comes from the Corporate Tax Law itself.
| Breach | Amount | Source |
|---|---|---|
| Late Corporate Tax registration | AED 10,000 (waived if first return filed within 7 months of the first period end) | CD 75/2023 |
| Late Corporate Tax return | AED 500 a month for 12 months, then AED 1,000 a month | CD 75/2023 |
| Late Corporate Tax payment | 14% a year, calculated monthly | CD 75/2023 as amended |
| Losing QFZP status | 9% above AED 375,000 for the current period and the next 4 | Corporate Tax Law |
| Corporate Tax records not kept | AED 10,000, or AED 20,000 repeat | CD 75/2023 |
| Late VAT return | AED 1,000, or AED 2,000 repeat within 24 months, per return | CD 129/2025 |
| Late VAT payment | 14% a year, calculated monthly | CD 129/2025 |
| Incorrect VAT return | AED 500, or AED 2,000 repeat | CD 129/2025 |
| Failure to issue a tax invoice or credit note | AED 2,500 per case | CD 129/2025 |
A stacked example: a DMCC company owing AED 39,150 files its December 2025 return six months late, on 31 March 2027. Late filing is 6 x AED 500 = AED 3,000, and late payment at 14% a year is AED 456.75 a month, AED 2,740.50 over six months, so AED 5,740.50 in penalties on top of the tax. More in our Corporate Tax penalties guide.
Is a penalty already running on your DMCC company?
We check your EmaraTax account, your QFZP claim and your VAT position on gold, commodities or crypto before more months are added.
6 errors that cost DMCC companies their 0% rate or a penalty
- Believing a DMCC licence means no tax. The company still registers and files; skipping the return costs AED 500 a month from the day after the deadline.
- Claiming QFZP with no audit. Audited statements are a condition, so the claim fails and the company faces 9% for five periods plus a return to correct.
- Mixing retail and wholesale gold sales. Sales to walk-in buyers are income from individuals and count against the 5% limit, even when most volume is trade to trade.
- Assuming the whole of DMCC is a designated zone. Goods treated as outside VAT in a non-designated unit lead to under-declared VAT and an incorrect return penalty.
- Paying shareholders through the company without a price trail. Related party payments must be at arm’s length and disclosed with the return.
- Cancelling the licence but not the registrations. Corporate Tax and VAT stay open at the FTA, and late deregistration costs AED 1,000 a month up to AED 10,000.
What routine keeps a DMCC company compliant all year?
Build these checks into the month end rather than the week before 30 September.
- Every month: classify new customers as free zone, mainland, individual or overseas
- Every month: reconcile stock by weight and purity, or wallets for crypto
- Every month: issue tax invoices within 14 days of supply
- Every quarter: file VAT 201 by the 28th and review designated zone goods movements
- Every quarter: track non-qualifying revenue against the lower of AED 5M or 5%
- Before year end: decide QFZP or Small Business Relief, and engage the auditor
- At year end: document related party pricing for the disclosure form
- Ongoing: keep records for 7 years for CT and 5 years for VAT
Is your DMCC company already late or holding an FTA penalty notice?
Stop the clock first by filing, then decide whether the penalty is worth challenging.
- File the overdue return, on the regime the facts support. Our missed Corporate Tax deadline guide covers the first week.
- Do not claim 0% to shrink the bill if the de minimis test or the audit condition fails; that turns a late return into an incorrect one.
- Disclose past VAT errors voluntarily. Before an FTA audit notice the penalty is 1% a month of the tax difference; after it, 15% plus 1% a month.
- Challenge a wrong penalty within 40 business days through reconsideration, as set out in our FTA reconsideration guide, and escalate to the Tax Disputes Resolution Committee if refused.
- Close dormant registrations with our Corporate Tax deregistration guide if the DMCC licence has gone.
Received an FTA penalty or notice?
Send it to us and we will tell you what to file first and whether a reconsideration request is worth making.
Worked example: a DMCC advisory company with AED 1.8M revenue
Consider an illustrative DMCC commodities advisory company with a 31 December 2025 year end. It earns AED 1,200,000 in fees from mainland trading houses and AED 600,000 from clients licensed in DMCC and other free zones.
| Step | AED | Working |
|---|---|---|
| Total revenue | 1,800,000 | 1,200,000 + 600,000 |
| Non-qualifying revenue (mainland clients) | 1,200,000 | Mainland customers |
| De minimis limit | 90,000 | Lower of 5,000,000 or 5% x 1,800,000 |
| QFZP result | Fails | 1,200,000 is above 90,000 |
| Taxable income | 810,000 | Illustrative, after deductible costs |
| At 0% | 375,000 | First AED 375,000 |
| At 9% | 435,000 | 810,000 minus 375,000 |
| Corporate Tax, standard basis | 39,150 | 9% x 435,000 |
| Corporate Tax if Small Business Relief is elected | 0 | Revenue up to AED 3M and no QFZP claim; return still filed |
With QFZP out of reach, electing Small Business Relief saves AED 39,150 here, provided revenue in earlier tax periods was also within AED 3M. Model your own split in our Corporate Tax estimator.
Doing DMCC tax filing yourself vs a freelancer vs an accounting firm
The QFZP judgement is what separates these options, more than the time it takes to key in a return.
| Factor | Do it yourself | Freelance accountant | Accounting firm (Paci) |
|---|---|---|---|
| Cost | No fee, but your time | Typical market range: usually lower fees, scope varies | Fixed quote within 24 hours; bookkeeping from AED 599 a month |
| QFZP and de minimis analysis | High risk of a wrong 0% claim | Depends on free zone experience | Built from your counterparty schedule |
| Audit, stock and wallet reconciliation | Hard to coordinate | Often outside scope | Coordinated with the auditor |
| Suits | Dormant DMCC companies | Simple service companies | Traders, gold dealers and crypto firms |
For a return that stands up to the QFZP conditions, see our Corporate Tax filing service. 1,000+ UAE businesses keep their books with Paci.
What do DMCC company owners ask us about Corporate Tax?
I hold freelance documents through a free zone such as DMCC and have no income. Do I need to register for Corporate Tax on EmaraTax?
It depends on what you hold. As an individual freelancer you come into Corporate Tax only once business turnover exceeds AED 1M in a calendar year, with registration due by 31 March of the following year. If you hold a company rather than a personal permit, the company must register whatever its revenue. Our guide to Corporate Tax for freelancers covers the AED 1M rule.
An SMS says the FTA issued a Corporate Tax late return filing penalty against my free zone company's TRN. Why, and what now?
The return was not filed by its deadline, 9 months after the financial year end. The penalty is AED 500 a month for the first 12 months and AED 1,000 a month after that, so file immediately to stop it growing. If you believe it is wrong, for example because the return was filed in time, request reconsideration within 40 business days.
Is Corporate Tax 9% on my whole profit, and is my DMCC company exempt automatically?
Neither. The first AED 375,000 of taxable income is taxed at 0% and only the excess at 9%. A free zone company gets 0% on its qualifying income only as a Qualifying Free Zone Person meeting the substance, audit, de minimis and transfer pricing conditions.
Do payments to my shareholders or group companies need special handling on the return?
Yes. Payments to connected persons such as owners, directors and relatives must be at arm’s length and are reported on a disclosure form with the return. A master file and local file are only needed at AED 200M entity revenue or AED 3.15B group revenue. See our transfer pricing guide.
Someone ticked no to Small Business Relief on my small, loss-making company's return last year. Can I use it this year?
Small Business Relief is elective, for resident businesses with revenue up to AED 3M in the current and earlier tax periods, and it now runs to periods ending on or before 31 December 2029. Whether declining it in one return affects a later election is a point to confirm with the FTA before you file. Remember it is not available if the company claims QFZP.
Frequently asked questions
Do DMCC companies pay 9% Corporate Tax?+
Only on taxable income above AED 375,000, and only if the company is not a Qualifying Free Zone Person or the income is non-qualifying. A DMCC company that meets every QFZP condition pays 0% on qualifying income. Many DMCC service companies billing mainland clients fail the de minimis test and pay 9% above AED 375,000, unless they elect Small Business Relief.
What is the DMCC corporate tax filing deadline?+
The Corporate Tax return and payment are due 9 months after the end of the financial year. For a DMCC company with a 31 December 2025 year end that is 30 September 2026. The DMCC licence renewal and any DMCC audit submission run on separate dates set by the authority.
Does a DMCC company need VAT registration?+
Yes once taxable supplies and imports pass AED 375,000 in the last 12 months, or will in the next 30 days; voluntary registration is possible from AED 187,500. Designated zone status does not remove registration. Our guide on when free zone companies must register for VAT explains the test.
Is gold trading income in DMCC qualifying income?+
It can be. Trading qualifying commodities and sales to other free zone persons can be qualifying income, but sales of jewellery or gold to individuals are generally non-qualifying and count toward the lower of AED 5M or 5% of revenue. Split the income by buyer and activity before you claim 0%.
Does DMCC require an audit for Corporate Tax?+
Corporate Tax requires audited financial statements from every Qualifying Free Zone Person and from companies with revenue above AED 50,000,000, under Ministerial Decision No. 84 of 2025. DMCC’s own audit requirement for licence renewal is set by the authority, so confirm it with DMCC and compare zones in our free zone audit guide by zone.
Can a DMCC company claim Small Business Relief?+
Yes, if it is a resident company with revenue up to AED 3M and it does not claim Qualifying Free Zone Person status. The relief applies to tax periods ending on or before 31 December 2029. The company still registers, files a return and keeps records for 7 years.
Do DMCC crypto companies charge VAT?+
Transfers and conversions of virtual assets are exempt from VAT under Cabinet Decision 100/2024, but other fees a crypto business charges may be taxable at 5%. For Corporate Tax, income from individual users is generally non-qualifying. See Corporate Tax for crypto businesses.
Get your DMCC company's QFZP and Corporate Tax position reviewed for free
In a free 15-minute review a qualified accountant tests your revenue split against the QFZP conditions and checks your VAT treatment for DMCC activities. You get a fixed filing quote within 24 hours.
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- FTA: Waiver of penalties
- FTA: Registration for VAT
- Ministry of Finance: Small Business Relief decision
- UAE Legislation: Cabinet Decision No. 116 of 2022 on the taxable income threshold
- DMCC Authority
Checked against these sources on 15 September 2026. This guide is general information for UAE businesses, not advice on your specific facts.