A
- Accrual basis Guide
- An accounting method that records income when it is earned and expenses when they are incurred, regardless of when cash changes hands. It gives a truer picture of performance than cash accounting and underpins IFRS financial statements.
C
- Chart of Accounts Guide
- The organised list of every account a business uses to record transactions — assets, liabilities, equity, income, and expenses. A well-structured chart of accounts makes reports meaningful and tax figures easy to extract.
- Corporate Tax Guide
- The UAE federal tax on business profits: 0% on taxable income up to AED 375,000 and 9% above, for financial years beginning on or after 1 June 2023. All taxable persons must register with the FTA, even within the 0% band.
D
- De-minimis Guide
- For a Qualifying Free Zone Person, the limit on non-qualifying revenue: it must not exceed the lower of 5% of total revenue or AED 5,000,000. Exceeding it causes the business to fail the QFZP test for that period.
- Depreciation
- The systematic allocation of the cost of a long-lived asset (such as equipment or vehicles) over its useful life, recognising that the asset loses value as it is used.
- Designated Zone Guide
- A specific area treated, for certain VAT purposes, as outside the UAE for the supply of goods. Movements of goods within or between designated zones can have special VAT treatment.
- Double-entry Guide
- The bookkeeping method that records every transaction in at least two accounts — one debit and one credit of equal value — so the books always balance. It is the foundation of IFRS-compliant accounting.
E
- E-invoicing Guide
- The UAE’s move to mandatory structured electronic invoicing, based on Peppol PINT-AE and a five-corner (DCTCE) model, exchanged and reported through Accredited Service Providers. Being rolled out on a phased timeline subject to FTA updates.
- EmaraTax Guide
- The Federal Tax Authority’s online portal for UAE tax. Businesses use EmaraTax to register for VAT and Corporate Tax, file returns such as the VAT 201, and make payments.
- Exempt supply Guide
- A supply on which no VAT is charged and for which related input VAT generally cannot be recovered. Examples include margin-based financial services, the lease or sale of residential property after its first supply, bare land, and local passenger transport. Unlike a zero-rated supply, an exempt supply carries no recoverable input VAT.
F
- FTA Guide
- The Federal Tax Authority — the UAE government body responsible for administering and enforcing federal taxes, including VAT and Corporate Tax.
G
- Gratuity
- End-of-service benefit for private-sector employees with at least one year of continuous service: 21 days’ basic salary per year for the first five years and 30 days’ per year beyond five, based on basic salary only and capped at two years’ basic salary.
I
- IFRS Guide
- International Financial Reporting Standards — the global accounting standards used in the UAE. IFRS governs how transactions are recognised, measured, and presented in financial statements.
- Input VAT Guide
- The VAT a business pays on its purchases and expenses. A registered business can generally recover input VAT by offsetting it against the output VAT it collects, subject to the rules.
O
- Output VAT Guide
- The VAT a business charges its customers on taxable supplies. Output VAT is collected on behalf of the FTA and reported on the VAT 201 return.
Q
- QFZP Guide
- Qualifying Free Zone Person — a free-zone business that meets all the conditions to benefit from 0% Corporate Tax on its qualifying income, with 9% on non-qualifying income.
- Qualifying Income Guide
- The income of a Qualifying Free Zone Person that is eligible for the 0% Corporate Tax rate. Income that does not qualify is taxed at the standard 9% rate.
R
- Reverse Charge Guide
- A VAT mechanism where the buyer, rather than the supplier, accounts for the VAT — commonly on certain imports of goods and services. The buyer records both the output and input VAT, often with no net cash effect.
S
- Small Business Relief Guide
- A transitional Corporate Tax relief allowing businesses with revenue of AED 3,000,000 or less in a period to elect to be treated as having no taxable income. It is time-limited, available for tax periods ending on or before 31 December 2026.
T
- Taxable Person Guide
- Any person — natural or juridical — who is subject to UAE tax. For Corporate Tax, all taxable persons must register with the FTA, including those expecting to fall within the 0% band.
- Trial Balance Guide
- A report listing the closing balances of all ledger accounts at a point in time. If double-entry has been applied correctly, total debits equal total credits — a key check before preparing financial statements.
- TRN Guide
- Tax Registration Number — the unique number the FTA issues when a business registers for tax. It must appear on tax invoices and is used when filing returns.
V
- VAT Guide
- Value Added Tax — a consumption tax charged in the UAE at a standard rate of 5%, with zero-rated and exempt categories. Registered businesses collect VAT on supplies and recover it on eligible purchases.
- VAT 201 Guide
- The UAE VAT return, filed to the FTA through the EmaraTax portal for each tax period (monthly or quarterly). It reports output VAT, input VAT, and the net amount payable or reclaimable.
Z
- Zero-rated Guide
- A supply taxed at a 0% VAT rate — such as exports outside the GCC, international transport, healthcare, education, and the first supply of a new residential building within three years of completion. Unlike exempt supplies, related input VAT can generally be recovered, and zero-rated supplies count towards the VAT registration threshold.
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