Question 1

What is the UAE Corporate Tax rate and when does it apply?

Accepted Answer

The UAE Corporate Tax applies at a standard rate of 9% on taxable income exceeding AED 375,000. Income up to AED 375,000 is taxed at 0%. The tax is effective for financial years starting on or after 1 June 2023, as established by Federal Decree-Law No. 47 of 2022.

Question 2

What is the filing deadline for UAE Corporate Tax returns?

Accepted Answer

Businesses must file their Corporate Tax return within nine months from the end of the relevant tax period. For example, a company with a financial year ending 31 December 2025 must file by 30 September 2026. Late filing is subject to administrative penalties enforced by the Federal Tax Authority.

Question 3

What is ICV (In-Country Value) and why is it important?

Accepted Answer

In-Country Value (ICV) is a program established by the UAE Ministry of Industry and Advanced Technology (MoIAT) to stimulate economic growth by directing government procurement spending toward local suppliers. An ICV certificate is mandatory for bidding on contracts with government and semi-government entities including ADNOC, Mubadala, and EDGE Group.

Question 4

How is the ICV score calculated?

Accepted Answer

The ICV score is calculated as a percentage based on weighted components: revenue retention within the UAE economy, Emiratization (employment of UAE nationals), spending with local and ICV-certified suppliers, capital investment in the UAE, and export revenue. Each component carries different weightings determined by MoIAT.

Question 5

When does the UAE e-invoicing mandate take effect?

Accepted Answer

The voluntary pilot phase begins on 1 July 2026. Phase 1 (mandatory for large enterprises) starts in late 2026, Phase 2 (medium-sized businesses) in 2027, and full mandatory compliance for all in-scope businesses is expected by October 2027, per Ministerial Decision No. 244 of 2025.

Question 6

What technical format is required for UAE e-invoices?

Accepted Answer

The UAE has adopted the PINT AE format (Peppol International Invoice, UAE localization) based on the UBL 2.1 XML standard. Invoices must be transmitted through certified Access Service Providers (ASPs) connected to the Peppol network using a decentralized Continuous Transaction Controls (CTC) model.

Question 7

Can foreign investors own 100% of a UAE mainland company?

Accepted Answer

Yes. Following the amendment of the Commercial Companies Law, foreign investors can now own 100% of mainland companies in most business activities. However, certain strategic sectors may still require Emirati ownership or partnership. Free zones have always permitted 100% foreign ownership.