Tax & Accounting for Construction & Contracting in the UAE

Safeway provides tax and accounting support tailored to contractors, subcontractors and QS-led businesses in the UAE. Construction brings long contracts, retentions, advance payments and progress billing, each of which affects when VAT is due and how income is recognised for Corporate Tax. Getting the tax point and revenue recognition right keeps cash flow and compliance in order. As an FTA-approved tax agent in Ajman, we handle Corporate Tax, VAT and accounting for Construction and Contracting businesses across all emirates.

Tax and accounting issues specific to Construction and Contracting

• VAT tax points on progress claims, retentions and advances
• Revenue recognition under IFRS for long-term contracts
• Corporate Tax on contracting profits
• Subcontractor and supplier VAT recovery
• WIP, provisions and cost reporting

How Safeway helps

• Corporate Tax registration, planning and return filing
• VAT registration, correct treatment and quarterly returns
• Sector-appropriate bookkeeping and IFRS financial statements
• Health checks and voluntary disclosures where needed

Contact us for a tax and accounting review tailored to your Construction and Contracting business.

Frequently asked questions

How is VAT handled for Construction and Contracting businesses in the UAE?

Construction brings long contracts, retentions, advance payments and progress billing, each of which affects when VAT is due and how income is recognised for Corporate Tax. Getting the tax point and revenue recognition right keeps cash flow and compliance in order.

Do Construction and Contracting businesses pay Corporate Tax?

Yes. Corporate Tax applies at 9% on taxable income above AED 375,000, with 0% below it, and Small Business Relief may be available for revenue up to AED 3 million. We help you apply the right position.

Can Safeway handle both VAT and accounting for my business?

Yes. We provide bookkeeping, financial statements, VAT and Corporate Tax as one joined-up service, so the numbers reconcile across your returns.

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