RERA Audit Requirements for Real Estate Developers in UAE
06/12/2025
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The UAE tax environment has changed dramatically in just a few years. What started with Value Added Tax (VAT) has now evolved into a full UAE corporate tax framework, overseen and enforced by the Federal Tax Authority (FTA) and guided by the Ministry of Finance (MoF). Corporate tax is a form of direct tax levied on the net income or profit of corporations and other entities from their business activities, and the UAE CT regime is now one of the central pillars of the country’s wider taxation model.
Under the current UAE CT regime, corporate tax is a form of direct tax levied on the net income of taxable entities. In simple terms, it is tax levied on the net income or profit that companies generate from transactions when they conduct business in or from the UAE. This guide explains how FTA corporate tax regulations interact with the world’s first fully digital VAT refund system for tourists on e-commerce retail purchases in the UAE, and why both systems matter for your business if you want to comply with every applicable rule and standard.
The Federal Tax Authority (FTA) is the central tax authority and Abu Dhabi–based federal regulator responsible for administering federal taxes across the UAE. Working alongside the Ministry of Finance and Abu Dhabi–level financial policymakers, the FTA designs, implements, and oversees:
→ Corporate tax regulations under the federal decree-law on corporate taxation
→ Value Added Tax (VAT) on goods and services
→ Excise tax and related tax frameworks
Corporate tax in UAE was introduced through Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, supported by a detailed set of ministerial decisions and FTA public clarifications. The law applies, in general, to financial periods starting on or after 1 June 2023, bringing the UAE fully into line with international practice while retaining a competitive tax rate.
Under FTA corporate tax regulations, businesses must:
→ Determine whether they are taxable persons subject to CT (corporations and other entities that conduct business in the UAE, including many mainland companies and some free zone entities)
→ Register for corporate tax where required under the UAE CT regime and related ministerial decision provisions
→ Calculate taxable income based on the rules in the UAE corporate tax law, including rules on exempt income, participation exemption, tax loss relief, and adjustments to accounting profit
→ File tax returns and pay tax on time at the applicable tax rate, usually the standard 9% rate on taxable income above the threshold
→ Maintain proper accounting records and financial reporting that meet regulatory requirements and qualify as an acceptable reference in any future tax review
Some income and activity are outside the scope of federal corporate tax—for example, the extraction of natural resources, which continues to be taxed at the emirate level under separate provision and rule. Individuals in a personal capacity who do not carry on a business or other commercial activity in the UAE are generally exempt from CT on wages, certain investment income, and similar returns, provided they satisfy the conditions in the law.
Through detailed guides and public clarification documents, the FTA and MoF specify how the law applies to different sector profiles, including real estate, trade, financial services, management and holding companies, and foreign corporations with a presence in the UAE. Together, the Ministry of Finance, the FTA, and relevant emirate-level authorities have set a model for a modern, globally competitive tax system.
At the same time as corporate tax has been introduced, the FTA has also built a sophisticated digital VAT environment. The recent launch of the world’s first VAT refund system for e-commerce retail purchases made by tourists in the UAE demonstrates how many different entities and attributes now interact under FTA regulation.
Key entities in this environment include:
→ Institutions and authorities such as the Federal Tax Authority, the UAE Government, and other tax regulators
→ Systems and mechanisms such as the tourist VAT refund system, the e-commerce tax refund system, and the underlying digital refund platform operated in partnership with Planet
→ Core tax concepts, including VAT refund, tax refund, indirect taxation, UAE corporate tax, tax rate, taxable income, exempt income, and the broader UAE tax regime
→ Transactions and sectors, covering e-commerce retail purchases, online shopping, the retail sector, tourism, and real estate investment activity
→ People and target groups such as tourists in the UAE, international visitors, and non-resident shoppers
The attributes of this digital ecosystem can be grouped as follows:
The tourist VAT refund solution is described as the world’s first e-commerce VAT refund system—a globally pioneering, digital, paperless, and technology-driven platform. It is linked directly to e-commerce transactions and designed specifically for retail purchases made by tourists. The system allows automated or near real-time VAT refund processing, is integrated with FTA systems and an authorized operator, and applies a clear set of conditions to determine which purchases qualify for a refund.
This VAT refund system is embedded within the wider UAE corporate tax and VAT environment and is aligned with international standards on tax administration. It supports compliant VAT refunds for eligible tourist spending, enhances tax transparency and monitoring, and operates within a framework of legal rules, including the federal decree-law, ministerial decision, and detailed FTA clarification notes.
The system is focused on tourists as end-users. It provides direct financial benefit via VAT refunds, encourages participation in tourism and online retail, and offers an easy, convenient, and fully digital claim process with simple reference documentation. For businesses, it is another example of how the FTA expects companies to use digital tools and structured data in their tax processes.
Strategically, the e-commerce VAT refund system positions the UAE as an innovative tax jurisdiction and supports growth in e-commerce and traditional retail. It strengthens the UAE’s image as a global tourism and shopping destination, contributes indirectly to corporate tax revenue through economic growth, and shows how tax policy has become a pillar of wider economic diversification.
In a recent announcement, the Federal Tax Authority launched a groundbreaking VAT refund system for e-commerce retail purchases made by tourists while they are in the UAE. This system—developed in cooperation with Planet, the authorized operator of the tourist VAT refund scheme—was described as the first of its kind worldwide and another key pillar of the UAE’s innovation strategy in tax administration.
According to the FTA, a plan has been set to connect registered e-commerce platforms and retailers to the “VAT Refund for Tourists on E-Commerce Purchases” system. This initiative builds on an earlier achievement: a fully digital, paperless VAT refund system for tourists that has been operating since around 2019 and continues to be updated. Through that system, tourists can scan passports, complete purchase transactions, receive digital invoices, and claim VAT refunds at dedicated points when they leave the UAE.
Under the new e-commerce-focused model:
→ Tourists make purchases from e-commerce platforms that are registered with the FTA.
→ At checkout, they provide travel document details (such as passport information) and relevant personal data to confirm their eligibility.
→ The system generates digital tax invoices and links them to the tourist’s identity and transaction history.
→ Tourists can view and verify these invoices through a dedicated shoppers’ portal, where they can track their purchases, potential refunds, and the status of each return.
→ Identity and eligibility are confirmed at the delivery or order-fulfilment stage, and the VAT refund is processed digitally according to the applicable tax rate and conditions.
The FTA has highlighted that procedures are kept simple and clear while still ensuring compliance with UAE tax legislation. Senior FTA leadership has emphasised that the system enhances the digital VAT refund experience for tourists, reflects the UAE’s image as a safe and welcoming destination, and has already achieved high satisfaction scores due to its speed and efficiency. The General Manager of Planet has noted that the partnership with the Federal Tax Authority and Abu Dhabi–based stakeholders has created an integrated VAT refund ecosystem that seamlessly combines physical and online purchases into one smooth journey.
Tourist VAT refunds and corporate tax regulations might appear unrelated at first, but in practice they rely on the same foundations: accurate data, robust systems, and consistent compliance.
Both VAT and corporate tax are levied on the net income of businesses on the basis of reliable financial information:
→ Businesses must maintain accurate transaction records and accounting data showing the income or profit of corporations and other entities from their business activities.
→ They must issue proper tax invoices and retain documentation that supports both VAT returns and corporate tax returns.
→ They need reliable accounting and financial reporting systems—often integrated ERPs—that comply with regulatory requirements and can be easily reviewed by the FTA.
→ For e-commerce retailers and tourism-focused businesses, integration with FTA-compliant digital platforms, including the VAT refund system, is now part of the expected standard.
Those same records are used to calculate net income or profit for corporate tax purposes. Under the federal decree-law, CT is levied on the net income of taxable persons, with certain exemptions and adjustments. Any weakness in VAT data quality or invoicing will therefore affect the accuracy of corporate tax computations and may expose a corporation or foreign entity to compliance risk.
The development of world-leading systems like the e-commerce VAT refund platform shows how the FTA views tax not just as a legal obligation, but as:
→ A strategic lever for competitiveness, innovation, and global positioning
→A digital ecosystem in which policy, technology, management, and practice converge
For businesses, this means FTA corporate tax regulations must be seen as part of a dynamic, interconnected framework. You need to move beyond basic annual compliance and embrace integrated, tech-aligned tax processes that cover both the UAE CT regime and VAT.
To navigate this evolving environment, businesses should adopt a structured compliance roadmap that covers both corporate tax and VAT under the UAE CT regime.
Determine whether your business is subject to CT. Under the UAE corporate tax law, most companies that conduct business in the UAE—whether mainland, free zone, or foreign branches—will be considered taxable persons if they meet the conditions in the law. Certain entities, such as those engaged in the extraction of natural resources at emirate level or qualifying investment funds, may be exempt under specific provision.
Assess whether you operate as a corporation, partnership, branch, or other form of legal entity. Corporations and other entities may be treated differently depending on whether they are established in a free zone or mainland. The law and related ministerial decision documents specify how different structures and sector activities, such as real estate or trade, are treated. Consider whether any income is free from tax because it qualifies as exempt or falls under a participation exemption.
Separate domestic and international income streams, and distinguish between operating income, passive investment returns, and related-party transactions. Make sure VAT is correctly accounted for on each transaction and that the same data is available for corporate tax analysis. This is essential if you want to claim tax loss relief or carry forward a loss from one financial period to another under the rules.
Ensure your ERP, accounting software, and e-commerce platforms can generate FTA-compliant digital tax invoices for supplies of goods and services. Systems should be able to support both VAT and CT requirements, including audit trails, proper classification of taxable and exempt income, and clear documentation of adjustments to arrive at net income or profit. Where relevant, prepare for integration with the VAT refund system so that tourist refunds can be processed smoothly.
Maintain clear audit trails, contracts, board resolutions, and other supporting records that show how your business applies the law. Internal controls should help you comply with both corporate tax and VAT obligations, and they should be updated whenever a new rule, clarification, or standard is issued by the FTA or MoF.
The FTA frequently issues new public clarification documents, sector-specific guidance, and updates to its e-learning and reference material. Regularly review these materials to ensure that your current approach remains aligned with the most recent interpretation of the law and practice.
Carry out internal or external reviews of your corporate tax computations, VAT filings, and refund claims. Check whether your organisation remains subject to CT in the way you expect, whether any ministerial decision or amendment to the federal decree-law affects your position, and whether the way you calculate the tax rate and tax base remains correct. Proactively fixing issues is far less costly than responding to assessments or penalties later.
At Young & Right, we specialise in helping UAE businesses understand and implement FTA corporate tax regulations and the wider tax ecosystem, including VAT, excise, and digital systems. Our services are designed for businesses that want to comply fully while maintaining strategic flexibility and strong financial performance.
We help you analyse how the UAE corporate tax law, the UAE CT regime, and related ministerial decisions apply to your exact legal and operational model. Whether you are a UAE corporation, a foreign company with a permanent establishment, or a free zone entity, we clarify which parts of your income are taxable, which may be exempt, and which activities are subject to CT.
We assist with corporate tax and VAT registrations, ensuring that your organisation is correctly classified and that your internal processes are set to comply with current regulatory requirements from day one.
Our team supports your finance function with tax computations, tax returns preparation, and technical analysis—from identifying taxable income to applying participation exemptions, loss relief, and any relevant exceptions. We help you prepare accurate returns and supporting schedules that can stand up to review.
For companies engaged in tourism, retail, or e-commerce, we advise on VAT implementation, invoicing, and interaction with the VAT refund system for tourists. This includes reviewing real estate transactions, digital platforms, and supply chains to ensure that VAT treatment is correct and that refunds are properly documented.
We review your accounting and ERP systems to ensure that financial data is captured in a way that supports both VAT and CT. This includes checking coding structures, chart of accounts, management reporting, and control frameworks.
As the UAE CT regime continues to evolve, new rules and clarifications will emerge. Young & Right provides ongoing advisory support so your business can respond quickly to changes, assess investment opportunities, and align tax strategy with wider business goals.
The UAE’s tax landscape is now defined by two powerful forces working together: FTA corporate tax regulations and a rapidly evolving digital VAT ecosystem. From the Federal Decree-Law on the Taxation of Corporations and Businesses in 2022 to the introduction of corporate tax from 1 June 2023, and from the launch of early tourist refund programmes around 2019 to the new e-commerce VAT refund system, tax has become a central pillar of the UAE’s economic and regulatory model.
For businesses, this means tax is no longer a once-a-year calculation. It is embedded in systems, data, invoicing, and everyday management decisions across every sector—from real estate and trade to digital platforms and international investment structures. Companies must ensure that their corporate tax, VAT, and digital processes are aligned, up to date, and ready for review at any time.
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