UAE Tax and Business Tools FAQ 2026: Common Questions Answered
UAE tax and business tools FAQ 2026: practical answers to UAE VAT calculation, corporate tax, payroll, gratuity, and company formation questions — from.
UAE VAT quick questions
- What is 5% VAT on AED 10,000? AED 500. Total invoice = AED 10,500.
- I was charged AED 1,050 inclusive of VAT — what is the VAT? AED 1,050 ÷ 1.05 = AED 1,000 net. VAT = AED 50.
- My output VAT is AED 30,000 and input VAT is AED 12,000 — what do I pay the FTA? AED 18,000.
- My input VAT exceeds output VAT — what happens? You have a VAT credit. Carry it forward to the next period or apply for a refund from the FTA.
- Do I charge VAT on exports? No — exports are zero-rated. Charge 0% and retain export documentation.
- When is my VAT return due? 28 days after the end of your quarterly tax period.
UAE corporate tax quick questions
- My company profit is AED 800,000 — what is my CT? (800,000 − 375,000) × 9% = AED 38,250.
- My company profit is AED 300,000 — what is my CT? Zero — below the AED 375,000 threshold.
- I have a loss of AED 200,000 from last year and a profit of AED 500,000 this year — what is CT? Loss offset max = 75% × 500,000 = AED 375,000. Taxable income = 500,000 − 200,000 = 300,000 → below threshold → CT = AED 0. Remaining loss: AED 0 (fully used).
- When is my CT return due? 9 months after your financial year-end.
- Can I still elect Small Business Relief? Only if revenue is ≤ AED 3 million AND your tax period ends on or before 31 December 2029 (extended from 2026 by Ministerial Decision No. 131 of 2026).
UAE payroll and gratuity quick questions
- What is the gratuity for 5 years at AED 20,000 basic? (20,000 ÷ 30) × 21 × 5 = AED 70,000.
- What is the gratuity for 7 years at AED 20,000 basic? (20,000 ÷ 30) × (21×5 + 30×2) = AED 110,000.
- GOSI on a UAE national at AED 12,000 basic? Employee: AED 600. Employer: AED 1,500. Total: AED 2,100/month.
- When must I pay WPS salaries? Within 15 days of the contractual wage due date.
- Is income tax charged on UAE salaries? No. UAE has no personal income tax.
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Where can I verify a UAE supplier’s VAT registration number (TRN)?
On the FTA’s online TRN verification tool at tax.gov.ae. Enter the 15-digit TRN from the supplier’s invoice — the tool confirms whether the TRN is valid and active. Input VAT claims based on an invalid or cancelled TRN are disallowed by the FTA and can be assessed as penalties. Verify supplier TRNs for high-value suppliers at least once per year.
What is the UAE FTA EmaraTax portal and how do I register?
EmaraTax (emaratax.gov.ae) is the FTA’s unified online tax portal for UAE VAT registration, CT registration, return filing, payment, and voluntary disclosures. To register: go to emaratax.gov.ae, create an account using your UAE mobile number and Emirates ID (for individuals) or trade licence and authorised signatory details (for companies). All VAT-registered businesses and CT-registered entities must use EmaraTax for all FTA interactions from 2024 onwards.
What is the minimum paid-up capital required to set up a UAE company?
UAE mainland LLC: the UAE Companies Law removed the minimum capital requirement for most activities — the Memorandum of Association specifies whatever amount the founders decide. Some regulated activities (banking, insurance, investment) retain minimum capital requirements set by their regulator. Free zone companies: minimum share capital varies by free zone and activity — DMCC requires AED 50,000 minimum; DIFC Category 1 firms require significantly more. Check the specific free zone authority’s requirements.
How do I know if my UAE business needs to register for VAT?
UAE VAT registration is mandatory if your taxable supplies (standard-rated + zero-rated turnover from UAE and export activities) in the last 12 months exceeded AED 375,000 — or if you reasonably expect them to exceed AED 375,000 in the next 30 days. Voluntary registration is available if taxable supplies exceed AED 187,500. Exempt supplies (financial services margins, residential rent) do not count towards the threshold. If you are close to the threshold, review your position carefully — late registration results in a penalty and backdated VAT liability.