Tax & accounting

Every company should maintain records that accurately reflect its transactions, financial position, and tax or regulatory obligations. The required level of reporting depends on the entity, activity, tax position, free-zone rules, and any bank, investor, or audit requirement. Good bookkeeping is the baseline for making those obligations manageable.

Can you take over books that are behind?

Yes. We start by reviewing the available records, bank statements, invoices, payroll data, and prior filings, then agree a practical catch-up scope. The work required depends on how complete the documents are and whether historic returns, audits, or reconciliations are outstanding.

Do you prepare financial statements?

Yes, where the scope requires them. The format and level of review depend on the company’s jurisdiction, reporting needs, audit requirement, lender or investor requests, and tax position. We confirm the required deliverable before starting the work.

Do I need an audit for my UAE company?

Audit requirements depend on the entity, jurisdiction, activity, free-zone rules, tax position, financing, investor requirements, and any regulatory or contractual obligations. Even where an audit is not mandatory, financial statements or accounting evidence may still be needed for tax, banking, governance, or commercial reasons.

What accounting records should a Vietnam company maintain?

A Vietnam company should maintain complete, supportable records of its income, expenses, contracts, invoices, payments, payroll, tax filings, and corporate decisions. The required form and retention of records depend on the company’s activities, accounting method, tax position, and applicable Vietnamese rules. Set up document collection and accounting processes early rather than reconstructing evidence at filing time.

How is the Sonsoto referral programme different?

The programme pays a one-time reward of up to USD 1,500 for an eligible new client that reaches the applicable completion point. The applicable reward, market, eligible service, qualifying conditions, and payment terms are confirmed in the referral schedule or written agreement.

Can a regional HQ employ staff in the UAE?

Yes, subject to the chosen entity, licence, office or facility arrangement, establishment records, visa capacity, labour or free-zone rules, payroll setup, and the roles being performed. Workforce planning should be built into the setup route rather than added after incorporation.

Can a UAE company employ people outside the UAE?

Potentially, but overseas hiring can create local employment, payroll, tax, social-security, immigration, labour-law, and permanent-establishment considerations. The correct approach depends on where the employee works, the role, employment model, local law, and the company’s wider structure.

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UAE corporate tax 13

Is 0% corporate tax automatic in a free zone?

No. Free-zone status alone does not create an automatic 0% corporate-tax outcome. Qualifying Free Zone Person treatment depends on meeting applicable conditions and may depend on the company’s income, activities, substance, accounting, elections, and compliance position.

Can bookkeeping help with corporate-tax compliance?

Yes. Accurate, timely records are central to preparing a reliable corporate-tax position and return. Bookkeeping does not determine tax treatment on its own, but it provides the records needed to assess income, expenses, transactions, and supporting evidence properly.

Does every UAE company need to consider corporate tax?

Yes. UAE corporate tax can be relevant to mainland and free-zone entities, although the final obligation depends on tax residency, activity, accounting period, income, elections, and applicable reliefs or exemptions. The position should be reviewed against the current rules before a return is prepared.

What is the UAE corporate-tax rate?

The standard UAE corporate-tax framework includes a 0% rate on taxable income up to AED 375,000 and a 9% rate above that threshold, subject to current law and the company’s tax position. Different treatment can apply in specific cases, so the rate should not be assumed from the entity’s location alone.

Does a free-zone company automatically qualify for 0% corporate tax?

No. Free-zone status alone does not create an automatic 0% outcome. A company seeking Qualifying Free Zone Person treatment must meet the applicable conditions, and the treatment can depend on income, activities, substance, accounting, elections, transfer-pricing compliance, and other requirements.

Do dormant companies still need to register or file for corporate tax?

Possibly. A company with little or no activity can still have registration, record-keeping, and filing obligations. The answer depends on its legal status, tax period, and current authority requirements. We review the company’s facts and confirm the practical position.

What records should a UAE company keep for corporate tax?

Companies should maintain records supporting income, expenses, transactions, financial statements, ownership, and tax position. The precise record set depends on the business and any relief or free-zone treatment being claimed. Good bookkeeping throughout the year is usually the safest starting point.

Does ADGM offer 0% corporate tax?

ADGM status does not, by itself, determine a company’s corporate-tax outcome. Tax treatment depends on the entity’s facts, activity, income, tax residency, and the applicable UAE rules. Obtain appropriate tax advice before relying on a particular result.

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VAT 6

Do I need to register for VAT?

VAT registration depends on the company’s taxable supplies, turnover, activities, applicable thresholds, and current rules. A company should not register—or assume it does not need to register—without reviewing the actual facts. We assess the position and identify the appropriate next step.

Do I need to charge VAT to overseas customers?

Not necessarily. VAT treatment depends on the type of supply, customer status and location, place-of-supply rules, and applicable UAE law. International invoicing does not automatically mean VAT is irrelevant. We review the transaction model before a VAT treatment is assumed.

What happens if a VAT return is filed late?

Consequences can include penalties, payment obligations, correction work, and increased scrutiny depending on the circumstances and current rules. The right response depends on the filing period, amounts involved, previous compliance history, and whether an error needs voluntary disclosure or another corrective step.

When should a Vietnam company plan for VAT?

VAT planning should begin before the company starts invoicing or contracting. The relevant treatment can depend on the goods or services, customer location, invoicing route, import or export elements, registration position, and supporting documentation. Align contracts, invoices, accounting records, and tax processes so the company can support its treatment.

Can I register for VAT before I start trading?

The appropriate timing depends on the company’s taxable activities, expected turnover, registration rules, evidence of intended supplies, and current FTA requirements. Do not register prematurely or assume registration can be deferred without reviewing the actual commercial facts.

Can Sonsoto help if I have missed a VAT or corporate-tax deadline?

Yes. We begin with the entity, tax period, filing status, accounting records, amounts involved, prior correspondence, and any notices or penalties. The correct response can involve catch-up bookkeeping, return preparation, correction, payment planning, voluntary disclosure, or specialist tax advice depending on the circumstances.

Payroll and WPS 5

Does every UAE company need to use WPS?

Not every employer follows the same payroll route. WPS requirements depend on the employer’s jurisdiction, workforce, labour registration, and the current rules applying to that establishment. We confirm whether WPS applies before payroll is set up.

What do you need to run payroll?

We usually need each employee’s agreed pay, contract and employment details, labour or immigration records where applicable, bank details, attendance or leave inputs, and any approved deductions or allowances. The exact document set depends on the employer’s jurisdiction and payroll structure.

Can you run payroll for a new company?

Yes. We can help establish the payroll process once the company has the necessary employment, labour, banking, and authority records in place. The setup sequence varies between mainland and free-zone employers, so we confirm the correct route first.

Can you correct a payroll error?

Usually, yes. The right correction depends on whether payment has already been processed, whether WPS is involved, and whether the issue affects labour records, tax, benefits, or employee documentation. We review the position and set out practical correction steps.

What should an employer plan for when running payroll in Vietnam?

Payroll planning should cover employment terms, salary structure, payroll timing, statutory deductions and contributions, tax withholding, payslips, employment records, and reporting. The correct treatment depends on the worker’s status, residence, remuneration, location, and the company’s obligations. Confirm the employment and payroll setup before the first payment.

Personal income tax, individual tax residence and individual filing 3

When can an individual have personal tax obligations connected with the UAE?

An individual’s tax position depends on the countries in which they are resident, present, employed, conducting business, receiving income, holding assets, or making investments. UAE residency, a UAE company, or a UAE visa does not by itself settle tax residence or filing obligations elsewhere. Obtain personal tax advice before relying on a relocation, remuneration, dividend, or investment structure.

When can an individual have personal tax obligations in Vietnam?

An individual’s tax position can depend on residence, physical presence, employment, business activity, source of income, remuneration, and links to other jurisdictions. Immigration status and tax residence are related but not identical questions. Obtain individual tax advice before relying on an employment, director, contractor, dividend, or relocation arrangement.

Can I pay myself a salary, dividend, management fee, or director fee?

The appropriate route depends on your role, ownership, employment status, visa, labour position, accounting, tax, corporate documents, bank requirements, and the company’s financial position. Do not use one payment category as a substitute for another without reviewing the proper treatment.

Group structures, foreign income, permanent establishment and treaty interaction 2

What should a group consider when using a UAE company in an international structure?

A UAE company should be assessed as part of the wider group, not in isolation. Relevant issues can include where management and activity occur, contractual flows, foreign income, intercompany arrangements, permanent-establishment risk, withholding taxes, transfer pricing, treaty access, substance, and reporting obligations. The right structure depends on the actual facts and should be reviewed by qualified tax and legal advisers before implementation.

What should an international group consider when using a Vietnam company?

An international group should consider the full cross-border structure, including management and control, contracts, foreign income, intercompany services, financing, intellectual property, permanent-establishment risk, transfer pricing, withholding taxes, treaty questions, and reporting obligations. These issues depend on the facts and may involve more than one jurisdiction. Obtain qualified tax and legal counsel before implementation.

Reference library Draft — under editorial review

AE tax — Branch income

A branch of a non-resident may constitute a UAE PE, making its attributable income subject to UAE CT.
No branch-profits (remittance) tax and no withholding on profit transfers between a branch and head office.
Foreign bank branches in certain emirates are taxed separately at 20% under special bank-tax decrees, with relief to mitigate overlap with federal CT.

Tax & accounting

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Answers

Bookkeeping and financial records 26

UAE corporate tax 13

VAT 6

Payroll and WPS 5

Personal income tax, individual tax residence and individual filing 3

Group structures, foreign income, permanent establishment and treaty interaction 2

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