Dubai’s VAT regime underwent its most significant amendments under Cabinet Decision No. 100 of 2024 to the VAT Executive Regulation (Federal Decree-Law No. 8 of 2017), with Public Clarification No. 40 detailing new rules for multi-component supplies, zero-rating on exports, expanded acceptable export documentation, and updates to the profit-margin scheme.
The UAE introduced a federal corporate tax on January 1, 2024, applying a 9% rate on profits exceeding AED 375,000 and 0% on profits up to that threshold. The regime aligns with OECD guidelines, mandates registration for mainland and qualifying free-zone entities, and requires adherence to transfer-pricing rules3.
Cabinet Decision No. 34 of 2025 further refines corporate tax treatment for Qualifying Investment Funds (QIFs) and Qualifying Limited Partnerships (QLPs), offering exemptions when real-estate asset thresholds and ownership-diversity criteria are met. Grace periods and individual accountability for breaches enhance flexibility for fund managers and investors.
Consultants play a critical role by:
- Guiding businesses through VAT and corporate tax registration processes
- Designing robust internal controls and record-keeping systems
- Conducting VAT and corporate-tax health checks and readiness audits
- Preparing transfer-pricing documentation and defense strategies
- Advising on cross-border transactions and treaty benefits
- Delivering training and technology-driven compliance tools
For tailored insights and hands-on support, visit http://www.thevistacorp.com..