Question 1

What is UAE TAX AI?

Accepted Answer

UAE TAX AI is an AI-powered tax preparation and compliance platform designed specifically for businesses operating in the United Arab Emirates. It helps you prepare VAT returns, Corporate Tax filings, and FTA-format reports with intelligent calculations, deadline tracking, and a built-in AI tax assistant called Amin.

Question 2

How does UAE TAX AI work?

Accepted Answer

You connect your accounting software (QuickBooks, Xero, Zoho, etc.) or upload transactions manually. UAE TAX AI automatically categorizes transactions, applies the correct tax treatment under UAE law, and generates FTA-compliant reports. The Amin AI assistant is available to answer questions about UAE tax rules and guide you through the filing process.

Question 3

Does UAE TAX AI file my returns with the FTA?

Accepted Answer

No. UAE TAX AI is a tax preparation and compliance assistance tool. It produces accurate, FTA-format reports and calculations that you can use when filing through the FTA portal (EmaraTax). Actual submission to the Federal Tax Authority remains your responsibility or that of your registered tax agent.

Question 4

What languages does UAE TAX AI support?

Accepted Answer

UAE TAX AI supports both English and Arabic. The platform interface, AI assistant, and generated reports are available in both languages to serve the diverse business community in the UAE.

Question 5

How does UAE TAX AI keep my financial data secure?

Accepted Answer

All data is encrypted in transit using TLS 1.2+ and at rest using AES-256 encryption. The platform is hosted on Microsoft Azure cloud infrastructure with enterprise-grade security controls. Access to production data is strictly limited, monitored, and audited. We do not share your data with third parties.

Question 6

Is there a free trial available?

Accepted Answer

Yes. UAE TAX AI offers a free plan with basic VAT calculations and limited AI queries, no credit card required. Paid plans also come with a trial period so you can explore the full feature set before committing. You can upgrade, downgrade, or cancel at any time.

Question 7

What are the VAT return filing deadlines in the UAE?

Accepted Answer

VAT returns are due 28 days after the end of each tax period. Tax periods are typically quarterly (every three months) but can be monthly for businesses with annual taxable supplies exceeding AED 150 million. The FTA assigns your specific tax periods upon registration. UAE TAX AI tracks all your deadlines and sends reminders so you never miss a filing date.

Question 8

What is the reverse charge mechanism and when does it apply?

Accepted Answer

The reverse charge mechanism shifts the obligation to account for VAT from the supplier to the recipient. In the UAE, it applies when a UAE business receives services or goods from a supplier outside the UAE, or in certain domestic situations (e.g., specific hydrocarbons and precious metals). The recipient reports both output and input VAT on their return. UAE TAX AI automatically flags reverse charge transactions.

Question 9

What is the difference between zero-rated and exempt supplies?

Accepted Answer

Zero-rated supplies are taxable at 0% VAT, meaning the supplier charges no VAT but can still recover input tax on related purchases. Examples include exports of goods and services, international transport, and certain healthcare and education services. Exempt supplies are not subject to VAT at all, and the supplier cannot recover input tax on related costs. Examples include certain financial services, residential real estate, and bare land.

Question 10

How do I recover input VAT on business expenses?

Accepted Answer

You can recover input VAT on expenses that are directly related to making taxable supplies (standard-rated or zero-rated). To claim input tax recovery, you must hold a valid tax invoice, the expense must be for business purposes, and it must not fall under blocked categories (e.g., entertainment costs exceeding AED 500 per person per day). UAE TAX AI automatically calculates your recoverable input tax based on the apportionment rules.

Question 11

How does the Tourist Refund Scheme work?

Accepted Answer

The UAE Tourist Refund Scheme allows eligible tourists to claim refunds on VAT paid on purchases made during their stay in the UAE. Tourists can claim refunds at designated refund points in airports and ports. Retailers must be registered with the scheme and use the Planet tax-free system. The minimum purchase per tax invoice is AED 250, and the refund is subject to an administration fee.

Question 12

What is a VAT group and how does it benefit businesses?

Accepted Answer

A VAT group allows two or more related entities that are resident in the UAE to register as a single taxable person for VAT purposes. The parent company is responsible for all VAT obligations of the group. Key benefits include no VAT on intra-group transactions, simplified compliance, and consolidated reporting. To form a group, the entities must be related (financially, economically, and organizationally) and at least one must be UAE-established.

Question 13

What is the UAE Corporate Tax rate?

Accepted Answer

The UAE Corporate Tax applies at a standard rate of 9% on taxable income exceeding AED 375,000. Taxable income up to AED 375,000 is subject to a 0% rate to support small businesses and startups. A higher rate may apply to large multinationals that meet the criteria under the OECD Pillar Two framework (expected 15% top-up tax).

Question 14

What is Small Business Relief (SBR) and who qualifies?

Accepted Answer

Small Business Relief allows resident taxable persons with revenue of AED 3 million or less in the relevant tax period (and all previous periods) to elect to be treated as having no taxable income, effectively resulting in 0% Corporate Tax. This relief is available for tax periods starting on or after 1 June 2023 and is currently set to apply until 31 December 2026. Free zone persons and members of multinational enterprise groups are not eligible.

Question 15

What types of income are exempt from UAE Corporate Tax?

Accepted Answer

Key exemptions include dividends and capital gains from qualifying shareholdings (generally 5%+ ownership held for 12+ months), income earned by qualifying Free Zone persons from qualifying activities, income from intra-group transfers meeting conditions, and restructuring relief. Government entities, government-controlled entities, extractive businesses, and non-extractive natural resource businesses may also be exempt or subject to a different regime.

Question 16

What expenses are disallowed for Corporate Tax purposes?

Accepted Answer

Non-deductible expenses include bribes, fines and penalties, donations to non-qualifying organizations, entertainment expenses exceeding the allowed threshold (50% of the total entertainment expenditure), and expenditure not incurred wholly and exclusively for business purposes. Interest deductions may also be limited under the general interest deduction limitation rule (net interest expenditure capped at 30% of EBITDA). UAE TAX AI flags disallowed deductions automatically.

Question 17

What are the transfer pricing requirements in the UAE?

Accepted Answer

UAE businesses must comply with the arm's length principle for transactions with related parties and connected persons. Businesses with revenue exceeding AED 200 million must maintain a master file and local file. All businesses must complete a transfer pricing disclosure form as part of their Corporate Tax return. UAE TAX AI helps identify related party transactions and provides documentation support.

Question 18

Can I carry forward tax losses under UAE Corporate Tax?

Accepted Answer

Yes. Tax losses can be carried forward indefinitely and offset against up to 75% of taxable income in subsequent tax periods. The carry-forward is subject to continuity of ownership conditions: the same shareholders must hold at least 50% of the share capital throughout the period. Losses cannot be carried back to earlier periods. UAE TAX AI tracks your loss balances and automatically calculates the available offset each period.

Question 19

What is a Qualifying Free Zone Person (QFZP)?

Accepted Answer

A Qualifying Free Zone Person (QFZP) is a Free Zone entity that meets specific conditions to benefit from a 0% Corporate Tax rate on qualifying income. The conditions include maintaining adequate substance in the Free Zone, deriving qualifying income (from qualifying activities or transactions with other Free Zone persons), not having elected to be subject to Corporate Tax at the standard rate, and complying with transfer pricing rules.

Question 20

What is the de minimis rule for Free Zone persons?

Accepted Answer

The de minimis rule allows a QFZP to earn a limited amount of non-qualifying revenue without losing its qualifying status. Non-qualifying revenue must not exceed the lower of AED 5 million or 5% of total revenue. If this threshold is exceeded, the Free Zone person loses QFZP status for that tax period and is taxed at the standard 9% rate on all taxable income. UAE TAX AI monitors your revenue mix and alerts you if you approach the de minimis threshold.

Question 21

What are the economic substance requirements for Free Zone entities?

Accepted Answer

Free Zone entities must demonstrate adequate economic substance in the UAE to benefit from the 0% Corporate Tax rate. This means having adequate assets, employees, and operating expenditure relative to the activities conducted. Core income-generating activities must be performed in the Free Zone. The substance requirements align with the UAE's Economic Substance Regulations and the international standards set by the OECD.

Question 22

How are transactions between Free Zone persons and mainland entities taxed?

Accepted Answer

Transactions between a QFZP and a mainland (non-Free Zone) entity are generally not considered qualifying income and are taxed at the standard 9% rate, unless they relate to qualifying activities listed in the Cabinet Decision. However, services such as certain treasury, headquarters, holding company, intellectual property, and distribution activities may qualify. These transactions must comply with transfer pricing rules. UAE TAX AI classifies your transactions automatically to ensure correct treatment.

Question 23

What plans does UAE TAX AI offer?

Accepted Answer

UAE TAX AI offers four plans: Free (basic VAT tools, 1 user, 1 organization), Developer at AED 199/month (full VAT plus basic Corporate Tax, 5 users, API access), Business at AED 499/month (full VAT and Corporate Tax, 20 users, all integrations, e-invoicing), and Enterprise at AED 1,499/month (unlimited users and organizations, custom integrations, dedicated account manager). All paid plans include a free trial period.

Question 24

How does the free trial work?

Accepted Answer

The free trial gives you full access to your chosen paid plan features for a limited period with no credit card required. During the trial, you can explore all features, connect integrations, and generate reports. At the end of the trial, you can choose to subscribe or continue with the free plan. No data is lost when transitioning between plans.

Question 25

Can I cancel my subscription at any time?

Accepted Answer

Yes, you can cancel your subscription at any time from your account settings. When you cancel, your subscription remains active until the end of the current billing period. After that, your account reverts to the Free plan. Your data is retained for 90 days after cancellation, during which you can reactivate your paid plan at any time.

Question 26

What payment methods do you accept?

Accepted Answer

We accept all major credit and debit cards including Visa, Mastercard, and American Express through our secure payment processor, Stripe. Enterprise customers can also pay via bank transfer or invoice. All prices are in UAE Dirhams (AED) and are exclusive of VAT where applicable.

Question 27

What is your refund policy?

Accepted Answer

If you are not satisfied with UAE TAX AI, you can request a refund within 14 days of your initial paid subscription. Refund requests can be submitted through the Contact page or by emailing support@uaetaxai.com. Refunds are processed within 5-10 business days. Renewals and upgrades after the initial 14-day period are non-refundable, but you can always cancel to avoid future charges.

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