Taxes type in UAE

The United Arab Emirates applies several types of taxes:

Value added tax
Value-added tax is a type of sales tax, and this tax is charged to the final consumer, meaning that companies are not responsible for paying this tax, but companies are only tax collectors. You rarely find in the accounts of companies in the UAE an expense in the name of value-added tax.
Accordingly, any company in the UAE registered with the value-added tax system imposes a value-added tax of 5% on all its sales and contracts, then collects this amount every three months, deducts the amounts it incurred from its purchases during the same period, and then pays the rest to the Federal Tax Authority.

Excise tax

Excise tax is also a type of sales tax, as the United Arab Emirates has specified some goods, such as cigarettes, wines, energy drinks, and others, by imposing a tax on these goods, sometimes reaching a rate of 100%, depending on the classification, and companies are also collecting the tax.
If the company imports selective goods, it pays tax on it and then collects it from the sales centers to which it sells.

Corporate tax

Corporate tax is a type of income tax. The first tax year is the fiscal year that begins on or after June 1, 2023, and most companies will apply it to the financial statements for the year 2024, as most companies begin their fiscal year on January 1 of each year.
The tax rate is 9 percent, meaning 9 dirhams for every hundred dirhams in excess of 375,000 dirhams for net income, with great facilities for free zones, some of which will be subject to a zero percent rate. All companies within the Emirates or in free zones must register with corporate tax, and the fine for non-registration is 10,000 dirhams.