Spotlight On 5 Crucial Tax Questions Every Dubai Entrepreneur Needs to Ask (Before It’s Too Late)

Dubai is a world-class hub for business—low taxes, strategic location, and pro-investment policies make it hugely attractive to entrepreneurs.

But with the new UAE Corporate Tax regime and tightening compliance rules, it’s more important than ever to get your tax affairs right.

Whether you’re launching a start-up, growing an SME, or managing an established business, here are 5 essential questions to ask your tax advisor right now.

Fail to ask them, and you could face unnecessary taxes, penalties—or miss out on big savings.

Introduction

Starting 2024, most businesses in the UAE are subject to a 9% federal corporate tax on profits over AED 375,000.

But exemptions and nuances exist:

✅ Are you a Free Zone company?

✅ Do you qualify for the 0% Free Zone preferential rate?

✅ Are you considered a Qualifying Free Zone Person (QFZP)?

✅ How does your income source affect your tax obligations?

👉 Your advisor should help you figure out if you need to register, when, and how to structure your business for maximum efficiency.

1️⃣ Do I Need to Register for UAE Corporate Tax?

Free Zones have long offered 0% tax rates, but not all Free Zone income is exempt under the new regime.

Ask your advisor:

✅ What types of income qualify for 0%?

✅ Are your transactions with mainland clients “Qualifying Income” or taxable at 9%?

✅ Do you meet all conditions to keep the 0% rate?

Failure to plan can lead to losing Free Zone benefits altogether.

2️⃣ Is My Business Eligible for Free Zone Tax Incentives?

Company structure is key to optimising your tax position:

✅ Is your current legal structure still the best under the new rules?

✅ Should you set up a subsidiary, branch, or new entity?

✅ How will your ownership structure impact UAE tax and overseas reporting?

✅ Are you at risk of Permanent Establishment (PE) in other countries?

A good advisor will model options and help you make an informed choice that aligns with your growth plans.

3️⃣ How Should I Structure My Business to Be Tax-Efficient?

4️⃣ What Records Do I Need to Keep (and For How Long)?

The UAE Corporate Tax law imposes strict compliance obligations:

✅ Maintaining audited financial statements in many cases

✅ Detailed record-keeping for at least 7 years

✅ Documenting Free Zone Qualifying Income eligibility

Failing to keep proper records can result in penalties, audits, and even loss of Free Zone benefits.

Your advisor should help you set up compliant systems and processes before it becomes a problem.

5️⃣ How Will Corporate Tax Affect My Personal Tax Situation?

While the UAE has no personal income tax, you still need to consider:

✅ Dividend payments to owners/shareholders—tax-free locally, but may be taxed in your home country

✅ Tax residency rules if you split time internationally

✅ Overseas disclosure obligations (e.g. CRS, FATCA)

✅ Double Taxation Avoidance Agreements (DTAAs)

Your advisor should help you coordinate both corporate and personal tax planning—especially if you’re an expat or plan to repatriate profits.

Don't Wait Until It's Too Late

The new UAE Corporate Tax isn’t just a one-time registration—it’s an ongoing compliance obligation.

Smart entrepreneurs plan ahead, ask the right questions, and work with professionals who can guide them through the complexities.

At The Tax Faculty, we specialise in:

✅ UAE Corporate Tax registration and planning

✅ Free Zone structuring

✅ Accounting and compliance

✅ Cross-border tax planning for owners and shareholders

📞 Get in touch today to protect your business, your profits—and your peace of mind.

If you'd like support—The Tax Faculty is here to help. We specialise in expat-focused financial solutions, helping you make the most of your tax-free Dubai income—while protecting your peace of mind.