Amara Commercial Concierge — UAE

FAQ: UAE Compliance and Regulatory

Answers to common questions about UAE AML/CFT obligations, corporate tax, VAT, UBO registration, and what compliance actually looks like in practice for an SME.

Do I need to register for corporate tax?

Yes, if you own any UAE company — mainland or freezone. All UAE juridical persons subject to the Corporate Tax law must register with the Federal Tax Authority (FTA) on EmaraTax and obtain a Corporate Tax Registration Number (TRN). Registration deadlines are based on the date of licence issuance or financial year end. Penalties for late registration start at AED 10,000.

What is the corporate tax rate?

The UAE Corporate Tax rate is:

  • 0% on taxable income up to AED 375,000
  • 9% on taxable income above AED 375,000

Freezone entities that meet the Qualifying Freezone Person (QFZP) conditions can access a 0% rate on Qualifying Income. See our dedicated guide on corporate tax for freezone entities.

When does my company's first corporate tax return need to be filed?

CT returns are due 9 months after the end of the financial year. For a company with a December 31 financial year end, the first CT return for the year ending December 31 2024 was due by September 30 2025.

For companies with a non-calendar year end, the deadline is 9 months from that year end.

Do I need to register for VAT?

You must register for VAT if your taxable supplies in the trailing 12 months (or projected forward 12 months) exceed AED 375,000. Voluntary registration is available above AED 187,500 and is generally advisable because it allows you to recover VAT on business expenses.

Penalties for late registration start at AED 20,000.

What is a UBO and why does it matter?

A UBO (Ultimate Beneficial Owner) is the real individual who ultimately owns or controls your company. UAE law requires all companies to identify their UBOs and register them with the relevant authority (Ministry of Economy for mainland companies; freezone authority for freezone entities).

UBO registration is not a compliance technicality — it is a hard legal obligation. The penalty for non-compliance starts at AED 100,000. Banks also request UBO confirmation as part of account opening KYC.

Is my business a DNFBP? Do I need an AML programme?

A DNFBP (Designated Non-Financial Business or Profession) is a business category subject to UAE AML/CFT obligations. The categories include real estate brokers, dealers in precious metals and stones, accountants and auditors, lawyers, company formation agents, and virtual asset service providers.

If you fall into one of these categories, you need:

  • A written AML/CFT policy and procedures document
  • A Customer Due Diligence (CDD) programme
  • A registered Compliance Officer
  • goAML registration for suspicious transaction reporting

If you are unsure whether your business is a DNFBP, contact Amara for an assessment.

What are the AML/CFT penalties for non-compliance?

Administrative fines range from AED 50,000 to AED 5 million per violation. Serious or persistent breaches can result in licence revocation and criminal prosecution of responsible individuals. The UAE's AML/CFT enforcement has intensified significantly since 2022.

Do I need audited accounts?

It depends on your structure and circumstances:

  • Mainland mainland LLC: UAE law requires most LLCs to maintain proper accounting records; audit requirements are not always actively enforced for small companies but are technically required
  • QFZP freezone entities: Audited financial statements are a hard requirement for maintaining the 0% corporate tax rate
  • Most freezones: Annual audited accounts are required as part of the licence renewal process
  • DIFC / ADGM entities: Mandatory audit requirements apply under their own regulations

Amara's Compliance+ and Amara360 tiers include financial reporting support and coordination with licensed UAE auditors.

How does Amara help with compliance?

Amara manages compliance obligations across three core areas:

  1. AML/CFT: Policy frameworks, goAML registration, ongoing monitoring, outsourced MLRO/CCO function
  2. Financial reporting and tax: Management accounts, corporate tax registration and filing, VAT filing
  3. Regulatory tracking: UBO registration, ESR notifications, licence renewal, deadline monitoring

See our Service Tiers guide for a full breakdown of what each retainer level covers.

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