Buying a Business in 2025: UAE Tax Filing Requirements That New Owners Must Know
Thinking of buying a business in the UAE this year?Great move. 2025 is full of opportunity. But there’s one thing you can’t ignore: tax. You are in troubled waters if you are ignoring the tax aspect of your business.
The UAE’s tax system is changing. Fast. With Corporate Tax (CT) now in place, new business owners have more responsibilities than ever. This stays the same when you buy a business. This is to say if you’re stepping into someone else’s business, those tax duties don’t just disappear. You inherit them!
Miss CT filing? You could face penalties. File it the wrong way? You could risk audits or legal trouble. That’s why understanding your tax obligations from day one is critical. This guide breaks it down—simple, clear, and built for new owners like you.
Let’s make sure your investment doesn’t turn into a tax headache.
Corporate Tax (CT): What New Business Owners Must Know
We are going to simplify your tax responsibilities for you. You should be able to navigate through them easily:
Register Fast b
You must register for Corporate Tax within 3 months of buying the business. Do it with the Federal Tax Authority (FTA). Don’t delay.
Understand the Tax Rate
Your business will pay 9% on profits above AED 375,000. Anything below that? Still tax-free.
Know the Filing Deadline
You must file your tax return within 9 months after your financial year ends. Mark the date!
Small Business Relief
Making less than AED 3 million a year? You may qualify for Small Business Relief (available until the end of 2026). That could mean zero tax.
Thinking of Forming a Group?
You can file taxes as a group—but only if you meet certain rules and get pre-approval from the FTA.
Don’t Inherit Problems
Before you buy, check if the seller has unpaid Corporate Tax. If not cleared, you could be held responsible.
Value Added Tax (VAT): Key Steps After Buying a Business
Once you have bought the business, you need to go through these steps swiftly:
VAT Registration Transfer
If you’re buying the business as a going concern (TOGC), you may be able to transfer the existing VAT registration. This means no need for a new VAT number—but it must be approved by the FTA.
Apply for New VAT TRN
If the business doesn’t qualify as a TOGC, you’ll need to apply for a new VAT registration. Do this within 30 days of becoming liable—usually when your taxable turnover hits AED 375,000.
Filing Frequency
You’ll need to file VAT returns either monthly or quarterly. The FTA decides the cycle, and you must follow it strictly.
VAT Return Deadline
Returns must be submitted by the 28th of the month following the end of your tax period. Late filing? Expect fines.
Tax Invoices Are a Must
From day one of ownership, you must issue tax invoices for all taxable sales. Make sure they include all required details, like TRN and VAT breakdown.
Keep Records for 5 Years
You must keep all VAT-related records—invoices, returns, and accounts—for at least 5 years. This applies even if you sell or close the business later.
Excise Tax & Transfer Pricing: Special Cases to Watch
When buying a business, it’s not always just about income and VAT. If the company deals in certain goods or is part of a global group, there are extra layers of tax compliance you need to handle. Here’s what matters:
Excise Tax (If Applicable)
If the business you’re buying imports, produces, or stocks excise goods—like tobacco products, soft drinks, energy drinks, or electronic smoking devices—you must register for Excise Tax with the FTA before starting operations.
Filing
Excise Tax returns must be submitted monthly. The due date is the 15th day of the following month. For example, your January return must be filed by February 15. Even if no excise goods were sold in a month, nil returns are still required.
Compliance
Excise goods must be clearly marked with digital tax stamps (if applicable), stored in designated warehouses, and properly declared. Check if the business already has valid warehouse approvals and registration numbers, and make sure they’re up to date.
Transfer Pricing
This applies if you or the seller is part of a Multinational Enterprise (MNE) Group—generally defined as having operations in more than one country with group revenue of AED 3.15 billion or more. However, documentation rules also apply to smaller groups once revenue crosses AED 200 million.
Documentation Requirements
You may need to prepare and maintain two key files:
- Master File – gives an overview of the global business, including structure, operations, and transfer pricing policies.
- Local File – details related-party transactions specific to the UAE entity.
Both files must be ready to submit when requested by the FTA—so don’t wait until the last minute.
Disclosure Form
A Transfer Pricing Disclosure Form must be filed with your Corporate Tax return every year. This form outlines all related-party transactions and ensures pricing is in line with market value. Missing or incorrect forms can lead to penalties.
FTA Portal Updates
Right after the acquisition, log into the FTA portal and update the company profile. This keeps your tax records clean and avoids future issues.
Update Economic Activities, Legal Representative, and Authorised Signatories
Make sure the new business activities, along with the legal representative’s name and authorized signatories, are correctly reflected in the portal. These changes help the FTA know who’s responsible now.
Link the New Owner’s Emirates ID / Digital Signature
You must connect your Emirates ID and digital signature to the business account. This allows you to access and sign official submissions like VAT and CT returns.
Update Memorandum of Association (MoA) and Commercial License Details
If ownership has changed, you’ll likely need to amend the MoA and update your commercial license. Once done, upload the latest copies to the FTA portal for record-keeping.
Free Zone Entity Requirements
If you’re buying a Free Zone company, make sure it still qualifies for the 0% Corporate Tax rate. Not every Free Zone business gets this benefit.
Determine QFZP Eligibility
The company must meet the FTA’s definition of a Qualifying Free Zone Person (QFZP)—meaning it earns income only from approved sources (like doing business with other Free Zone entities or overseas clients) and doesn’t deal with the mainland unless allowed.
Comply with Substance Regulations
To keep the 0% rate, the business must have adequate presence in the UAE—like office space, active operations, and staff. This proves that the business is genuinely operating in the Free Zone.
Maintain Separate Books & File Standalone Returns
A Free Zone entity must keep separate accounting records and file its own tax return, even if it’s part of a group. This helps the FTA assess if it really qualifies for the Free Zone tax benefits.
How ADEPTS Can Assist
Buying a business in UAE is a big step—and the tax side of it can get tricky. That’s where ADEPTS comes in. Our team helps you stay compliant, avoid risks, and make smarter financial decisions from day one.
Expertise in Tax Compliance
We walk you through every step of Corporate Tax (CT) and VAT registration. From filing deadlines to portal setup, our team ensures you’re fully aligned with FTA requirements—no confusion, no delays.
Support with Transfer Pricing
If you’re part of a multinational group, transfer pricing rules can’t be ignored. ADEPTS helps you prepare the required documents—Master File, Local File, and Disclosure Forms—and ensures your related-party transactions are priced and reported correctly.
Due Diligence Support
Before you buy, we dig deep. Our due diligence covers the full tax picture—any unpaid liabilities, non-compliance risks, or missing registrations. We help you see the full truth behind the deal.
Ongoing Advisory Services
Rules change fast. We make sure you never miss a new regulation. ADEPTS provides regular updates, compliance reminders, and custom strategies to help reduce your tax burden legally and efficiently.
Conclusion
Understanding your tax responsibilities when buying a business in the UAE isn’t optional—it’s essential.
From CT registration to VAT filing and due diligence, the process is full of critical steps that can’t be skipped.
Partnering with experienced professionals like ADEPTS gives you confidence, clarity, and control.
We make sure your new business starts strong—with no surprises later.
FAQs:
No. You’ll need to register for Corporate Tax under your own name within 3 months of the acquisition. The CT registration doesn’t transfer automatically with the business.
Yes, you could be. In many cases, tax liabilities follow the business, not the owner. That’s why due diligence is critical—always check for unpaid taxes before you sign the deal.
You must update the FTA portal with new details—like the legal representative, economic activity, and Emirates ID of the new owner. It’s best to do this right after the transfer is complete.
If the business is inactive and not earning taxable income, you may not need to register right away. But once it starts operating again—or reaches the taxable threshold—registration becomes mandatory.
Yes. If the business earns less than AED 3 million per year, you may qualify for Small Business Relief under Corporate Tax rules (available until the end of 2026). This can reduce or eliminate your tax burden.
Not always. To enjoy the 0% rate, the Free Zone company must meet strict conditions—like earning qualifying income and maintaining substance in the UAE. The tax rate could be 9% if those rules aren’t met.
