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Federal Decree-Law No. 47 of 2022 introduced UAE corporate tax at 9% on taxable income above AED 375,000. The model needs an explicit tax-expense line tied to taxable profit, not revenue. If you intend to claim Small Business Relief (taxable income treated as zero up to AED 3 million), note the relief sunsets 31 December 2026 — see our UAE corporate-tax deadlines guide for the filing calendar.
A Qualifying Free Zone Person pays 0% corporate tax on Qualifying Income and 9% on non-Qualifying Income. Your model needs two tax columns, not one — and the QFZP test requires audited IFRS statements from the first qualifying period, which is itself a line-item cost.
Article 51 of Federal Decree-Law No. 33 of 2021 sets EOSB at 21 days basic salary per year for the first five years and 30 days per year thereafter, capped at two years' total. It is a balance-sheet liability accrued monthly — not a P&L expense at termination. A senior hire on AED 30,000 basic salary creates roughly AED 1,750 of EOSB liability every month from day one.
Output VAT (5%) is due to the FTA on a quarterly cycle, payable within 28 days of period end. UAE B2B customers pay on 60–90 day terms. For an invoice issued late in a quarter, you can remit the AED 10,000 output VAT on a single AED 200,000 invoice to the FTA before the customer's payment lands — funding the government's share with your own cash. Across a full quarter of invoices the working-capital gap is structural, not optional, and the model must show how it is funded.
A complete 3-year UAE financial projections package contains five linked outputs.
Start bottom-up — units, price, conversion rate, channel-by-channel — not top-down “1% of GCC market.” Anchor every line in AED. Investors and bank reviewers reject hockey-stick growth without a unit-economics narrative.
Real supplier quotes in AED, with delivery timing — UAE customs duties (5% standard) on imported goods sit here, not in operating expenses.
This is where UAE-specific lines live and where US/UK templates leak. Annualise these correctly:
Monthly for Year 1, quarterly or annual for Years 2 and 3. Show revenue, COGS, gross margin, operating expenses, EBITDA, depreciation, EBIT, corporate tax, and net profit. Tax line uses the 9% rate above AED 375,000 — or the QFZP split for free-zone entities.
This is where most UAE models fail. Open with operating cash flow, account for the VAT timing gap, separate the licence-renewal lump sum from the monthly OPEX, then layer in working-capital movements (60–90 day receivables, 30–45 day payables typical for UAE B2B). Add investing cash flow (CAPEX, deposits) and financing cash flow (founder loans, bank debt, equity).
Capitalise in AED — not USD with a footnote conversion. Show share capital, retained earnings, EOSB liability, VAT payable/receivable, deferred tax (if applicable), receivables, payables, and cash. Retained earnings must reconcile to net profit minus any distributions.
Don’t want to figure this out alone? Sarmat is a KHDA-certified training provider and registered typing centre in Deira, Dubai. Message us on WhatsApp — we answer questions like this every day.
Emirates NBD, Mashreq, RAKBANK, and Emirates Development Bank SME credit committees read the same projections through a credit lens. The pattern, documented in their public SME-onboarding pages and the Mashreq Dubai Chambers onboarding guide, is consistent.
If you are also seeking VC or angel capital, expect the additional ask of cohort-based metrics: monthly recurring revenue if SaaS, gross margin trend, CAC and LTV, burn rate, and runway to next milestone.
Day 0 — issue AED 200,000 invoice plus AED 10,000 VAT, total AED 210,000.
Day 60–90 — customer pays (typical UAE B2B payment terms).
Day 90 — quarterly VAT period closes; AED 10,000 output VAT now payable.
Day 118 — VAT payment deadline (28 days after period end).
If the customer is at day 75, you have AED 210,000 in the bank when the AED 10,000 hits. If the customer is at day 90 with delayed processing, you remit AED 10,000 to the FTA before the receivable lands. Multiply across a quarter of invoices and a working-capital line is structural, not optional.
Plan-track participants build the full three-statement model with mentor review at each milestone — assumptions, P&L, cash flow, balance sheet, sensitivity scenarios. The track ships with an AED-anchored 3-year model template that already encodes the EOSB monthly accrual, the QFZP corporate-tax split, the VAT timing gap, and the licence-renewal cycle. If your existing model is already failing a bank stress test, enrol in the 100-Step Business Accelerator — or message us on WhatsApp for a one-time review of the model you have today.
Enrol in the 100-Step Business AcceleratorThree years is the standard for investor pitches, free-zone applications, and most SME bank loans. Year 1 monthly, Years 2–3 quarterly or annual. Some growth investors and EDB facilities ask for five — extending years 4–5 is straightforward once the model is built.
Qualifying Free Zone Persons pay 0% on Qualifying Income and 9% on non-Qualifying Income. Your model needs both columns, plus the audited-IFRS-statements line item the QFZP test now requires.
21 days of basic salary per year for the first five years, 30 days per year thereafter, capped at two years' total. Accrue monthly as a balance-sheet liability — not as a P&L expense at termination. The 2023 alternative savings scheme is opt-in for some employers and changes the accounting treatment.
Six to twelve months of business and personal bank statements, audited financials if available, a 3-year projection with monthly Year-1 cash flow, the trade licence and MOA, and a business plan. Conservative cash-flow scenarios outperform aggressive ones with credit committees.
Output VAT is due to the FTA on a quarterly cycle with 28 days to pay. Customers typically pay on 60–90 day B2B terms. The model must explicitly show the gap and how it is funded.
UAE consultancies typically quote AED 5,500–55,000 depending on complexity. The 100-Step Business Accelerator includes the model build inside the programme rather than charging per output.
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