Corporate Tax for restaurants and cafes: a practical checklist

1. Register on time

Every UAE company must register for Corporate Tax within the deadline the FTA sets, whether or not it expects to pay tax. Late registration carries an AED 10,000 penalty.

2. Know the rates

The first AED 375,000 of taxable profit is taxed at 0% and the remainder at 9%. The AED 375,000 is a profit band, not a revenue threshold.

3. Check Small Business Relief

If revenue is AED 3 million or less in a tax period ending on or before 31 December 2026, you may elect to be treated as having no taxable income for that period. Many single-outlet cafes fall within this. The election is made in the return, and records must still be kept. If you operate several outlets through separate companies, the revenue test and anti-abuse rules need a closer look.

4. Expenses that need care

• Client entertainment is generally only 50% deductible
• Fines and penalties are not deductible
• Owner's personal expenses paid by the company are not business expenses
• Staff meals are a business cost, but should be recorded as such, not left inside food cost

5. Keep the records

Keep POS reports, bank statements, supplier invoices, delivery-app settlement statements, payroll and the financial statements. For Corporate Tax, records are generally kept for at least 7 years.

6. File within 9 months

The return is due within 9 months of the end of your tax period. For a calendar-year company, that is 30 September of the following year.