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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.

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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

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Last verified: 27 أغسطس 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: 27 August 2026

Frequently asked questions

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

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