Velmont Crest Accounting

AED 375,000. That is the line.
Once your taxable supplies cross this amount in any rolling 12-month period, UAE VAT registration is mandatory — not optional.
The two thresholds:
🔴 Mandatory: AED 375,000 — must register within 30 days of crossing
🟡 Voluntary: AED 187,500 — can register if beneficial
What happens if you miss the deadline?
❌ AED 20,000 penalty — immediate
❌ Back-VAT owed on all supplies made while unregistered
What counts toward the threshold?
✅ Standard-rated supplies (5% VAT)
✅ Zero-rated supplies (exports, international services — yes, these count too)
❌ Exempt supplies do not count
The most common mistake: businesses that export assume they do not need to register. Export turnover still counts.
At Velmont Crest, we monitor your turnover and handle your VAT registration before the deadline hits.

UAE corporate tax applies to crypto. Here is what you need to know.
🔴 Taxable crypto activity (9% corporate tax): Trading cryptocurrency as a business Crypto mining and staking as a commercial operation Providing crypto-related services (exchanges, advisory, custody)
🟡 Potentially exempt: Long-term passive holding as an investment asset Gains may qualify under the participation exemption — subject to FTA classification
The key question: Is your crypto activity business income or investment income?
The FTA looks at: 📊 Frequency and volume of transactions 🎯 Commercial intent and systems used 📋 How positions are managed and documented
Getting this wrong in your tax return is a high-risk mistake. The wrong classification means the wrong tax treatment — and a potential FTA challenge.
At Velmont Crest, we assess your crypto and digital asset position and ensure it is reported correctly.

Foreign company with staff or operations in the UAE? You may have a UAE corporate tax liability without knowing it.
What creates a Permanent Establishment (PE) in the UAE:
🏢 Fixed place of business Office, workshop, warehouse, construction site (6+ months)
🤝 Dependent agent Someone in the UAE concluding contracts on your behalf
💻 Remote employees Staff working from the UAE for 183+ days in a 12-month period
Once a PE is established, the profits attributable to it are subject to UAE corporate tax at 9%. Registration is not required for the liability to exist — the activity creates it.
This is a growing risk for international businesses expanding into the UAE market without formal local registration.
At Velmont Crest, we assess your UAE permanent establishment exposure and advise on the right structure.

Does your business have loans? Then you need to understand the UAE corporate tax interest deduction cap before you file.
The rule: Net interest expense is only deductible up to 30% of adjusted EBITDA.
Example: 📊 Adjusted EBITDA: AED 1,000,000 📉 30% cap: AED 300,000 💸 If your net interest expense is AED 450,000 → AED 150,000 is disallowed
What happens to the disallowed amount? ✅ Carried forward to future tax periods ❌ Cannot be carried back
Watch out for: intercompany loans from related parties. These are subject to both the cap AND transfer pricing rules. The interest rate must be at arm's length — or the entire deduction could be challenged.
At Velmont Crest, we model your interest deduction position before filing so there are no surprises.

Free zone company with a mainland branch? You have two different tax treatments running simultaneously — and mixing them up can cost you everything.
Here is how it works:
🏢 Free Zone Entity Potentially 0% tax on qualifying income (if QFZP conditions are met)
🏬 Mainland Branch Treated as a domestic permanent establishment 9% corporate tax applies to all branch income
The rules: 📁 Separate accounting records required for the branch 📊 Costs must be allocated between free zone and branch on a documented basis 🚫 Commingling income = loss of QFZP status = 9% on everything
This is one of the most mismanaged corporate tax situations we see. The free zone advantage is real — but only if the structure is maintained correctly.
At Velmont Crest, we set up the accounting structure and ensure your free zone tax position is protected.

Most UAE businesses overpay corporate tax. Not because the rate changed — because they miss deductions they are legally entitled to.
Here is what you can deduct under UAE Corporate Tax:
✅ Staff salaries and employment costs ✅ Business rent and utilities ✅ Cost of goods sold ✅ Depreciation on fixed assets ✅ Interest on business loans (up to the 30% EBITDA cap) ✅ Professional fees — audit, accounting, legal ✅ Bad debt provisions (if properly documented) ✅ Charitable donations to UAE-approved entities
Every deduction you miss is taxable income you did not need to have. At nine percent, even AED 50,000 in missed deductions costs your business AED 4,500 in unnecessary tax.
At Velmont Crest, we review your accounts before filing to make sure every allowable deduction is claimed.

The depreciation method you choose is not just bookkeeping. Under UAE corporate tax, it is tax planning.

Straight-line: equal deduction every year. Predictable.
Reducing balance: bigger deduction in early years. Faster relief.

The costly mistake: switching mid-life without justification.