tax & finance / Accounting
Accounting and Bookkeeping for UAE Companies
01_introduction
A UAE company carries mandatory bookkeeping, VAT, and corporate tax obligations from licensing. Managing these under one unified function maintains compliance and prevents penalties.
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01
Accounting Obligations
Accounting Obligations
From incorporation, every entity formed via business setup must maintain proper accounts, register for corporate tax, and file returns. VAT registration is mandatory once taxable supplies exceed AED 375,000 (voluntary from AED 187,500).
Free zone status does not exempt a company from these requirements. Unifying bookkeeping, VAT, and tax prevents missed filings.
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Free Zone Tax Filings
Free Zone Tax Filings
Free zone companies have the same corporate tax and VAT registration duties as mainland entities. Benefiting from the 0% rate on qualifying income is a filing outcome requiring audited evidence, not an automatic exemption.
Registration rules are detailed in how UAE corporate tax works. Broader structuring connects directly to corporate finance advisory.
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Deadlines and Penalties
Deadlines and Penalties
Late corporate tax registration incurs a fixed AED 10,000 penalty. Returns are due nine months after the financial year-end; late filing costs AED 500/month for the first year (AED 1,000/month thereafter), plus 14% annual interest on unpaid tax.
For the first tax period, filing within seven months waives or refunds the AED 10,000 penalty. GCG manages the calendar to keep filings timely.
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How we approach this
Bookkeeping, VAT and corporate tax run off one set of books, not three.
That is the point of it: a VAT return and a corporate tax return that disagree are how a company ends up explaining itself to the FTA. Keeping records current through the year, rather than reconstructing them at the deadline, is what makes accurate filing possible at all, which is why quarterly VAT filing is offered to accounting clients only.
Put your compliance in order
Bring bookkeeping, VAT and corporate tax under one function.
04_faq
Can accounting be handled entirely remotely without a UAE-based bookkeeper?
Yes. Bookkeeping and filing can be handled remotely, with records maintained digitally and returns filed on the company's behalf.
What is the penalty for late VAT registration in the UAE?
Late VAT registration carries a fixed penalty of AED 10,000. Late payment of VAT accrues at 14 percent per annum under the regime in force since April 2026.
Do UAE companies still need to file an ESR return?
No. ESR filings ended with financial years closing 31 December 2022; substance now matters through the corporate tax regime instead.
Can GCG file corporate tax and VAT returns on the company's behalf?
Yes. GCG handles registration and ongoing filing for both corporate tax and VAT as part of the accounting function.
How often do UAE companies need to file VAT returns?
Quarterly is standard, with monthly filing for large taxpayers. Each return is due within 28 days of the end of the tax period.