Reference
UAE tax and compliance glossary
The terms UAE businesses actually meet, defined plainly and linked to the authority that issues them. 12 entries.
- VATValue Added Tax
- A 5% consumption tax applied to most goods and services in the UAE. Businesses above the mandatory threshold must register with the Federal Tax Authority and file returns.
- Corporate TaxUAE Corporate Tax
- A 9% federal tax on business profits above AED 375,000, effective for financial years starting on or after 1 June 2023. Profits below that threshold are taxed at 0%.
- TRNTax Registration Number
- The unique 15-digit number the Federal Tax Authority issues on registration. It must appear on every tax invoice and is how the FTA identifies your business.
- goAMLgoAML reporting platform
- The UAE's mandatory anti-money laundering reporting system, operated by the Financial Intelligence Unit. Designated businesses must register and file suspicious transaction reports through it.
- AMLAnti-Money Laundering
- The controls a business must put in place to detect and prevent money laundering, including customer due diligence, risk assessment and reporting obligations.
- CTFCounter-Terrorism Financing
- Measures preventing funds reaching terrorist organisations. In the UAE these obligations sit alongside AML rules and are supervised together.
- ESREconomic Substance Regulations
- Rules requiring UAE entities carrying on certain activities to demonstrate real economic substance in the country, through a notification and, where relevant, an annual report.
- UBOUltimate Beneficial Owner
- The natural person who ultimately owns or controls a company. UAE entities must identify their UBOs and keep a register of them.
- KYCKnow Your Customer
- The process of verifying who a customer is before doing business with them, and keeping that information current. It is the foundation of any AML programme.
- DMTTDomestic Minimum Top-up Tax
- A 15% minimum effective tax rate applied to large multinational groups operating in the UAE, aligning the country with the OECD's global minimum tax framework.
- FTAFederal Tax Authority
- The UAE government body responsible for administering, collecting and enforcing federal taxes, including VAT, excise and corporate tax.
- CITCorporate Income Tax
- Another term for UAE Corporate Tax: the 9% federal tax on business profits above AED 375,000.
