Doing business in the UAE, explained
UAE Business Explained is an independent guide to doing business in the UAE and to its economy. Plain-English guides and calculators cover company setup, corporate tax, VAT, staff, banking, trade and investing, and each UAE figure shows its official source. It is not a setup agency and sells no services.
Key figures
Checked
| Corporate taxOn taxable income above AED 375,000 a year | 9% |
|---|---|
| VATStandard rate, unless a supply is zero-rated or exempt | 5% |
| VAT registrationTaxable supplies and imports over the past 12 months | AED 375,000 |
| Corporate tax returnDue after the end of the tax period | 9 months |
| Annual leaveMinimum paid days for each year of service | 30 days |
| Dirham pegDirhams to one US dollar, fixed by the Central Bank | 3.6725 |
Sources: Ministry of Finance, Federal Tax Authority, The Official Portal of the UAE Government (u.ae) and Central Bank of the UAE.
Find your topic
Running a company
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Company setup
Mainland or free zone, legal forms, trade licences, the setup steps, renewals and closing a company.
8 guides
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Employment and payroll
Labour law for employers and staff: contracts, hours and overtime, leave, WPS, gratuity, ILOE and Emiratisation.
8 guides
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Business banking and finance
Corporate accounts, the documents banks ask for, fees and balances, digital banks and SME finance options.
5 guides
Tax and trade
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Corporate tax
Rates and the tax-free band, registration, small business relief, free zone income, returns and penalties.
7 guides
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VAT and excise
VAT rates, zero-rated and exempt supplies, registration, invoices, returns, refunds, e-invoicing and excise goods.
7 guides
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Trade and customs
Importing and exporting, customs duty and exemptions, GCC rules, CEPA agreements and certificates of origin.
5 guides
Investing and the economy
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Investing and residency
Golden and green visas, buying property as a foreigner, investing on ADX and DFM, bonds and sukuk.
5 guides
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UAE economy
How the economy is measured: GDP, oil and non-oil activity, inflation, interest rates, the dirham peg and the budget.
5 guides
New to a term such as free zone person, tax period or WPS? The glossary explains it in a few lines.
Start with what you need to do
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Starting a company
- How to start a business in the UAE: the steps in order
- Mainland vs free zone: how to choose for your UAE company
- Trade licence types in the UAE: commercial, professional, industrial and e-commerce
- Company legal forms in the UAE: LLC, sole establishment, branch and more
- What a UAE trade licence costs, and what changes the price
- How to open a business bank account in the UAE
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Registering and filing tax
- How to register for corporate tax in the UAE
- Corporate tax return in the UAE: deadlines and how to file
- Corporate tax in free zones: the qualifying free zone person rules
- VAT registration in the UAE: thresholds and how to register
- How to file a VAT return in the UAE: periods, deadlines and payment
- UAE e-invoicing: who must comply and the 2026-2027 deadlines
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Hiring and paying staff
- End-of-service gratuity in the UAE: how it is worked out
- Leave in the UAE private sector: annual, sick, maternity and other leave
- Resignation and termination under UAE labour law: notice and final pay
- Wage Protection System (WPS): what UAE employers must do
- Working hours and overtime pay under UAE labour law
- ILOE unemployment insurance: who must subscribe and what it pays
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Importing and exporting
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Investing and moving here
- UAE golden visa: categories and requirements for investors and professionals
- Investor visas and the green visa in the UAE: who qualifies
- Buying property in the UAE as a foreigner: freehold areas and rules
- How to invest in the UAE stock market: DFM, ADX and your investor number
- UAE treasury bonds and sukuk: how individuals can invest
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Reading the economy
Run the numbers
Calculators that apply the official rule and show the working, so you can check a figure yourself.
- Corporate tax calculator The corporate tax due on the taxable income of a tax period, with the zero-rate band, the free zone split and the effective rate shown.
- Small business relief checker Whether a business can elect small business relief for a tax period, and the reason if it cannot.
- Corporate tax return due date The filing and payment deadline for a tax period, and how many days are left.
- Free zone de minimis test Whether a qualifying free zone person stays within the limit on non-qualifying revenue, and the headroom left.
- Late tax payment penalty calculator The penalty on corporate tax, VAT or excise tax paid late, month by month.
- VAT calculator Adds VAT to a net price or takes it out of a VAT-inclusive price.
- VAT registration checker Whether registering for VAT is mandatory, voluntary or not yet needed, and the deadline to apply.
- Excise tax calculator The excise tax on tobacco, energy drinks, vaping products and sweetened drinks.
- Gratuity calculator End-of-service gratuity for a private-sector employee, with every step of the calculation shown.
- Overtime pay calculator Pay for overtime, night work and rest-day work under the labour law.
- Leave salary calculator Annual leave days built up and the pay due for them.
- ILOE insurance calculator The unemployment insurance category, premium and monthly benefit for a salary.
Key guides
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UAE corporate tax rate: who pays 9% and who pays 0%
Does the UAE have corporate tax? Yes: 0% up to AED 375,000 of taxable income and 9% above, 15% for large groups, who is exempt and a worked example.
- Corporate tax applies to tax periods starting on or after 1 June 2023, so a calendar-year business was first taxed for 2024.
- Taxable income up to and including AED 375,000 in a tax period is taxed at 0%, and only the part above it at 9%.
- The tax is charged on taxable income, which starts from accounting profit, not on revenue.
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How to start a business in the UAE: the steps in order
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UAE VAT rates: 5%, zero-rated and exempt supplies explained
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End-of-service gratuity in the UAE: how it is worked out
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UAE golden visa: categories and requirements for investors and professionals
How we work
Three rules behind every page, and the policy that sets them out in full.
- Official sources
- Rates, thresholds, deadlines and penalties come from UAE law and the bodies that set them, such as the Ministry of Finance, the Federal Tax Authority and the Ministry of Human Resources and Emiratisation. Each one shows its source and the date we checked it. How we research.
- Independent
- UAE Business Explained is not a setup agency, a bank or a tax adviser. There are no lead forms, paid placements or affiliate links. How we make money.
- Open about corrections
- Every guide shows when it was last updated and reviewed. If you spot an error, tell us and we will correct the page and note the change. Corrections.