For finance teams reporting to a head office abroad
A UAE subsidiary of a foreign group: filings, reporting and the bank
The short answer
A UAE subsidiary of a foreign group must file its corporate tax return and pay any tax due within nine months of the end of its tax period, and keep its records for at least seven years. The Federal Tax Authority (FTA) sets both rules. We keep one ledger that produces those filings, head office's group pack and the bank's evidence for each intercompany flow, and we hold the entity's calendar beside the parent's.
A subsidiary is two accounting problems joined at the ledger. Locally, it is a UAE taxable person with its own registrations, returns and record-keeping obligations: a corporate tax return within nine months of the tax period's end, VAT returns usually within 28 days of each tax period, and corporate tax records kept for at least seven years. It must also prepare audited financial statements if its revenue exceeds AED 50,000,000 in a tax period or it is a Qualifying Free Zone Person, and its licensing authority may ask for an audit too. To the group, it is a reporting unit whose numbers must arrive mapped to the group's chart of accounts, translated into the group's currency and closed by the group's deadline, which is usually earlier than the local one.
The bank sits between them. Intercompany funding, management charges, shared costs and dividends are the flows a bank sees most and understands least, and a subsidiary whose books can show the agreement behind each flow passes its reviews; one that cannot is asked to explain them, one transfer at a time. Transfer pricing and the tax treatment of those same flows are the parent's adviser's concern and the UAE return's, and the books have to serve both.
At a glance
- Indicative cost
- The UAE auditor's fee and the group's adviser's are theirs; the Velarozone service fee for the local filings and the group pack is itemised in your engagement letter.
- Timing
- Mapping agreed with head office first; then monthly, closing to the earlier of the two calendars.
- What's included
- The local chart mapped to the group's
- Intercompany flows documented for the bank and the auditors
- Local filings and the group pack from one ledger
This is for you if
- Your UAE entity is owned by a group headquartered elsewhere and reports to it.
- You need a monthly or quarterly group pack in the group's format and currency.
- Intercompany charges, funding or dividends run through the UAE entity.
- The UAE filings and the group calendar have started to collide, with the group close falling before a VAT return usually due within 28 days of the period end.
This may not be the right route if
- You need advice on the group structure itself or on transfer pricing policy; that is for the group's tax adviser and, where a UAE position is needed, a licensed specialist we coordinate.
- You want the group's auditor's opinion signed by us.
- The entity has no activity and no flows and you only need it kept in good standing; that is a narrower engagement.
At a glance
- Indicative cost
- The UAE auditor's fee and the group's adviser's are theirs; the Velarozone service fee for the local filings and the group pack is itemised in your engagement letter.
- Timing
- Mapping agreed with head office first; then monthly, closing to the earlier of the two calendars.
- What's included
- The local chart mapped to the group's
- Intercompany flows documented for the bank and the auditors
- Local filings and the group pack from one ledger
What this service includes
- Local bookkeeping, VAT returns and the corporate tax return on the UAE calendar: nine months from year end for corporate tax, usually 28 days from each period for VAT.
- A group reporting pack in the group's format and currency, closed to the group's deadline.
- Intercompany agreements, charges and settlements recorded so the bank and the auditors can follow them.
- The audit file for the UAE auditor and component schedules for the group's auditor.
- One calendar holding the local filings and the group close side by side.
What it does not include
- Transfer pricing policy and group tax advice.
- Statutory audit, signed by a registered auditor.
- Legal drafting of intercompany agreements, which comes from a licensed law firm.
Process
How the work is sequenced
Each stage has its own dependencies (activity approvals, document legalisation, authority processing, and bank review), and we report progress against them rather than against one overall date.
- 01
Mapping
The local chart mapped to the group's; currencies, rates and the close calendar agreed with head office.
- 02
Intercompany
Every flow between the entity and the group documented and coded.
- 03
Monthly
Local bookkeeping and the group pack from the same ledger; VAT returns usually due within 28 days of each tax period.
Choosing between a branch and a subsidiary still? The expansion page comes before this one.
Prefer to start in writing? Send the details through the contact form.
Start with a structure assessment
In an initial consultation you receive a plain-language decision summary, a document-preparation list, and the next actions for your situation. Current figures are confirmed within your adviser-reviewed route comparison.
Local, group and bank
One ledger, three readers
The same transactions are read three ways; the books are designed so each reader gets its answer.
What the UAE authorities, the group and the bank each need from a subsidiary's books.
Federal Tax Authority
- What it needs
- Corporate tax return and payment within nine months of the tax period end, VAT returns usually within 28 days, corporate tax records kept at least seven years
- How the books deliver it
- Local statutory ledger, filings diarised
The licensing authority
- What it needs
- Audited statements where its rules require them; tax law adds them above AED 50,000,000 revenue or for a Qualifying Free Zone Person
- How the books deliver it
- An audit file a registered auditor can test
Head office
- What it needs
- A pack in the group's chart, currency and calendar
- How the books deliver it
- Mapping from the local chart; translation at the group's rates; an earlier close
The group's auditor
- What it needs
- Component reporting on its instructions
- How the books deliver it
- The same file, with the group's schedules
The bank
- What it needs
- An explanation for every intercompany flow
- How the books deliver it
- Agreements and invoices behind funding, charges and dividends
The parent's tax adviser
- What it needs
- Intercompany transactions documented
- How the books deliver it
- Contracts and pricing evidence kept with the ledger, ready for a local file where the thresholds apply
| Reader | What it needs | How the books deliver it |
|---|---|---|
| Federal Tax Authority | Corporate tax return and payment within nine months of the tax period end, VAT returns usually within 28 days, corporate tax records kept at least seven years | Local statutory ledger, filings diarised |
| The licensing authority | Audited statements where its rules require them; tax law adds them above AED 50,000,000 revenue or for a Qualifying Free Zone Person | An audit file a registered auditor can test |
| Head office | A pack in the group's chart, currency and calendar | Mapping from the local chart; translation at the group's rates; an earlier close |
| The group's auditor | Component reporting on its instructions | The same file, with the group's schedules |
| The bank | An explanation for every intercompany flow | Agreements and invoices behind funding, charges and dividends |
| The parent's tax adviser | Intercompany transactions documented | Contracts and pricing evidence kept with the ledger, ready for a local file where the thresholds apply |
The situation
UAE entry for international companies and expanding groups
The expansion page sets out branch, subsidiary and regional-headquarters structures for a group entering the UAE.
See the expansion page
Every route is planned against how the business will actually operate in the UAE.
After the licence
What you may also need
The four services most founders in this situation ask about next, each on its own page.
Visas & PRO services
Residence visas for owners, staff and family, plus the MOHRE labour files, medicals and Emirates ID renewals that keep a licence and its people in good standing. A sponsored visa lasts 1, 2 or 3 years; approval stays with the authority.
→UAE bank account setup
A bank-ready file built around your ownership, activity and expected transactions, matched to the bank whose risk appetite suits your profile. The bank alone decides approval and timing.
→Accounting & tax
Monthly bookkeeping, VAT and corporate-tax filings and year-end accounts, with statutory audit signed by a registered auditor.
→Legal services
Contracts, corporate documents, disputes and regulatory matters, advised by lawyers licensed to practise in the UAE and named in the engagement letter.
→
Questions
Frequently asked
- Does the UAE entity need its own audit if the group is audited?
- The group's audit does not replace a UAE requirement. Under Ministerial Decision No. 84 of 2025, a taxable person with revenue above AED 50,000,000 in a tax period, and every Qualifying Free Zone Person, must prepare and maintain audited financial statements. A free zone or licence may require them as well. A registered auditor signs them for the entity; the group's auditor may also ask for component work for its own purposes.
- Can head office keep the books in its own system?
- Often, yes, if the UAE ledger can produce the local filings and keep the records the FTA expects: transactions, assets, liabilities and shares held at the end of the tax period, for at least seven years. Where it cannot, a local ledger mapped to the group's chart is the usual answer.
- How are management charges from the parent treated?
- As an intercompany transaction with an agreement behind it, a VAT treatment the books must apply, and a corporate tax position the return must take. The agreement is the group's adviser's; the recording and the returns are ours.
- Why does the bank keep asking about transfers from the parent?
- Because funding from a related party abroad is the flow banks scrutinise most. A loan agreement, a capital contribution resolution or an invoice on file turns each question into a one-line answer.
- Whose calendar wins when the two collide?
- Neither can be missed, so the books close to the earlier of the two and the later filing is prepared from that close. A 31 December year end puts the corporate tax return due nine months later, on 30 September, while VAT is usually due within 28 days of each period. The calendar we hold shows both.
Sources
- Federal Tax Authority: corporate tax
- Federal Tax Authority: VAT legislation and guides
- Ministry of Finance: corporate tax in the UAE
- CBUAE guidance on customer due diligence, source of funds and wealth
Regulations, fees, and eligibility can change. Every regulatory statement is re-checked before publication and dated above.
Legal notes and scope
Velarozone provides setup and operational-readiness coordination. This page is general information, not legal, tax, immigration, or banking advice.
General information drawn from the CBUAE Rulebook, including the Retail Payment Services and Card Schemes Regulation (C 15/2021), and Cabinet Resolution No. (134) of 2025 as published, not legal or tax advice. Rules and guidance change, so confirm the current text and each institution's own requirements before you submit.
UAE corporate tax and VAT deregistration depend on your specific facts, including whether returns and liabilities are up to date. Home-country obligations may also apply. We coordinate with your tax adviser and do not give a tax opinion.