Whether you have to register, how far you are from the line, and what the tax actually comes to.
Taxable supplies only — exempt and out-of-scope income does not count toward the threshold, which is where most wrong answers come from.
Registration is mandatory.
Taxed at 0%
AED 375,000
Taxed at 9%
AED 125,000
Tax due
AED 11,250
Effective rate 2.25%
The 9% applies to income above AED 375,000, not to the whole amount — which is why the effective rate is always lower than the headline. Crossing the line does not tax what came before it.
Revenue is at or below AED 3,000,000, so Small Business Relief may be available — an election that treats the business as having no taxable income for the period. It turns on revenue rather than profit, and it has to be claimed.
Based on Federal Decree-Law No. 8 of 2017 (VAT) and No. 47 of 2022 (Corporate Tax). Indicative only — contracts, free-zone authorities and individual circumstances can change the outcome. Confirm anything material with MOHRE or a qualified adviser before acting on it.
Proziyo tracks VAT and corporate tax filing obligations alongside licences and visas, so a deadline is a reminder rather than a fine.
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