Tax Services for
Real Estate Development Companies
in UAE 2026
The complete 2026 UAE tax guide for real estate developers — VAT on residential and commercial property, IFRS 15 percentage-of-completion revenue, Corporate Tax, land acquisition costs, customer deposit accounting, transfer pricing, RERA escrow compliance, input VAT recovery, and specialist UAE property developer tax advisory.
UAE real estate developers — villa developers, apartment builders, mixed-use project companies, commercial property developers, and master community operators — face the most complex combination of tax obligations in the UAE economy. The interaction of UAE VAT's residential vs. commercial property rules, IFRS 15 percentage-of-completion revenue recognition, Corporate Tax at 9% on development profits, the Participation Exemption for property disposals through share sales, transfer pricing for intercompany land transfers, and RERA escrow compliance creates a tax landscape that requires dedicated specialist expertise. Since the introduction of UAE Corporate Tax in June 2023, every unit sold, every contractor payment, and every customer deposit received by a property developer carries direct CT implications. This comprehensive 2026 guide covers every material UAE tax service for real estate development companies — from VAT on zero-rated residential and standard-rated commercial supplies through IFRS 15 revenue recognition, Corporate Tax planning, land acquisition cost treatment, joint development structures, IAS 23 borrowing cost capitalisation, and FTA audit readiness — and how OneDeskSolution provides specialist UAE real estate developer tax advisory and compliance services.
🏢1. UAE Real Estate Tax Landscape 2026
The UAE real estate sector is the economic backbone of Dubai and Abu Dhabi — generating trillions of dirhams in transaction volumes, employing hundreds of thousands of people, and attracting massive foreign direct investment. Dubai's property market hit record transaction volumes in 2024–2025, with luxury residential, off-plan villa communities, and mixed-use developments driving sustained developer activity across all major UAE master communities. For real estate development companies, 2026 represents the full maturation of the UAE tax era: Corporate Tax has been in force for over two years, VAT has been established for six years, and the FTA has developed sophisticated audit capabilities targeting the high-value, high-complexity property development sector.
Real estate developers face a unique tax position: they are simultaneously VAT suppliers (with the most complex VAT treatment in the UAE — zero-rated residential, exempt subsequent residential, standard-rated commercial, and potentially mixed supply); Corporate Tax payers on IFRS 15 percentage-of-completion profits; IAS 16/IAS 2 asset managers with complex capitalisation and impairment obligations; and RERA-regulated entities with escrow and financial reporting obligations. Each of these frameworks interacts with the others in ways that create amplified compliance risk and planning opportunity.
The most costly real estate developer tax errors in 2026 are: blocking input VAT on residential construction costs (when zero-rating means 100% recovery is available); using cash receipts as the basis for CT revenue (instead of IFRS 15 PoC); missing the RERA escrow VAT timing obligation; and failing to plan the Corporate Tax treatment of land disposals and project restructurings. The most valuable planning opportunities are: input VAT recovery on all residential construction costs; Participation Exemption for share-deal property exits; IAS 23 borrowing cost capitalisation for CT; and Business Restructuring Relief for intragroup property transfers.
Specialist Tax Services for UAE Real Estate Developers
OneDeskSolution provides expert tax advisory for UAE real estate development companies — VAT on residential and commercial projects, IFRS 15 CT revenue, input VAT maximisation, Participation Exemption planning, transfer pricing, and FTA audit defence. Get a free consultation today.
🏘️2. Types of Real Estate Development Businesses
Residential Developer
Villa communities; townhouses; apartments; off-plan sales; RERA-registered; zero-rated first supply VAT
Commercial Developer
Office buildings; retail malls; warehousing; industrial; hotel development; 5% VAT on all supplies
Mixed-Use Developer
Residential + commercial in one project; complex VAT apportionment; multiple IFRS 15 performance obligations
Master Developer
Large master communities; infrastructure; plots for sale to sub-developers; complex supply chain VAT
Hospitality Developer
Hotel development; serviced apartments; resort; commercial lease to operator; build-to-lease model
Developer-Contractor
Design and build; bespoke villas for clients; construction contract; IFRS 15 contract accounting
| Developer Type | VAT Complexity | CT Complexity | Key Tax Challenge |
|---|---|---|---|
| Residential Developer | Medium — Zero-rated first supply; exempt subsequent | Very High — IFRS 15 PoC; large CT liability | Input VAT maximisation; PoC accuracy; RERA escrow VAT timing |
| Commercial Developer | High — 5% VAT on all supplies; large output VAT | High — 9% CT on profits; lease income CT | Correct 5% VAT on commercial leases; input VAT full recovery |
| Mixed-Use Developer | Very High — apportionment between zero-rated, exempt, and 5% | Very High — Multiple POs; complex CT allocation | VAT apportionment methodology; CGAS for large buildings; shared costs |
| Master Developer | Very High — Plot sales; infrastructure; community fees | Very High — Phased revenue over many years; related-party sub-developer | Plot sale VAT (land vs. developed plot); TP for intercompany plot transfers |
| Hospitality Developer | Medium — Hotel supply: commercial (5%) | Medium — CT on rental income or disposal gain | Lease structure (operational lease vs. own operation); CT on hotel income |
💰3. VAT Fundamentals — Residential vs. Commercial Property
The UAE VAT framework for real estate creates four distinct supply categories — and the correct classification of each determines both the output VAT charged to buyers/lessees and the input VAT recovery available to the developer. Getting this wrong is the most common and most costly VAT error for UAE property developers.
| Supply Type | VAT Treatment | Rate | Input VAT Recovery | Key Condition |
|---|---|---|---|---|
| First supply — new residential building | Zero-Rated | 0% | 100% input VAT recoverable on all construction costs | First supply after completion; within 3 years of completion; to original buyer |
| Subsequent supply — residential resale | Exempt | 0% but Exempt | 0% — input VAT on related costs is BLOCKED | Any supply after the first; residential building more than 3 years old since completion |
| Commercial property — sale | Standard-Rated | 5% | 100% input VAT recoverable | Offices, retail, warehouses, hotels, serviced apartments: 5% VAT |
| Commercial property — lease | Standard-Rated | 5% | 100% input VAT recoverable on related costs | Commercial rental income: 5% VAT on all rent invoices |
| Bare land sale | Exempt | 0% Exempt | Input VAT on land acquisition costs: blocked | Undeveloped land; no buildings; no construction commenced |
| Developed plot sale (with infrastructure) | Analyse carefully | 0% or 5% | Depends on classification | Plot with infrastructure but no building: may be treated as land (exempt) or as developed commercial supply (5%); specific analysis required |
| Construction services (contractor to developer) | Standard-Rated | 5% | 100% recoverable if building is zero-rated residential or commercial | Contractor invoices to developer: always 5% VAT; developer recovers as input tax |
Zero-Rated ≠ Exempt — The Most Costly Real Estate VAT Confusion: The single most expensive VAT mistake made by UAE residential property developers is treating their zero-rated residential supplies as if they were VAT-exempt — and therefore blocking input VAT recovery on construction costs. Zero-rated (0% VAT charged to buyer, 100% input VAT recovered by developer) is categorically different from exempt (0% VAT charged, 0% input VAT recovered). A residential developer spending AED 100M on construction with AED 5M of embedded input VAT should recover every dirham of that AED 5M. If this recovery is incorrectly blocked due to exemption misclassification, the developer has suffered a permanent AED 5M tax cost that was never owed.
🏡4. VAT on Residential Property Development
🏢5. VAT on Commercial Property Development
| Commercial Activity | VAT Output | Input VAT Recovery | Invoice Requirement |
|---|---|---|---|
| Sale of completed office building to investor | 5% VAT on sale price | 100% input VAT on all construction costs | Full tax invoice with buyer TRN; 5% VAT disclosed |
| Lease of office space to corporate tenant | 5% VAT on annual rent | 100% input VAT on building costs | Monthly/quarterly rent invoice with 5% VAT; tenant TRN required for B2B invoice |
| Sale of retail unit in mall | 5% VAT on unit sale price | 100% input VAT on mall construction | Full tax invoice; 5% VAT; large amounts may trigger FTA scrutiny |
| Service charges (commercial building) | 5% VAT on service charge | 100% input VAT on service-related costs | Annual service charge invoice with 5% VAT |
| Warehouse / industrial unit lease | 5% VAT on rent | 100% input VAT on construction | Periodic rent invoices with 5% VAT |
| Hotel development sold to operator | 5% VAT on hotel sale | 100% input VAT on hotel construction | Full tax invoice; due diligence on VAT recovery for buyer |
Commercial Property — Simple and Powerful Input VAT Recovery: Commercial property development has a straightforward and highly beneficial VAT position: 5% VAT is charged to all tenants and buyers (output tax); 100% of input VAT on all construction and development costs is recoverable. A commercial developer building a AED 500M office tower with AED 25M of embedded construction VAT: recovers all AED 25M as input tax. The net VAT cost to the developer on the building itself is zero — input VAT on costs equals the input VAT recovered, leaving the developer in a cash-neutral position on construction VAT (assuming no significant exempt income).
🔑6. Input VAT Recovery — Maximising Developer Claims
| Cost Category | Input VAT Recoverable? | For Residential Dev. | For Commercial Dev. | Key Documentation |
|---|---|---|---|---|
| Main contractor construction invoices | Yes | 100% — zero-rated residential | 100% — standard-rated commercial | Tax invoice with contractor TRN; IPC certificate; payment records |
| Specialist subcontractor (MEP, fit-out) | Yes | 100% | 100% | Tax invoices; verify each subcontractor has valid UAE TRN |
| Architectural and engineering fees | Yes | 100% | 100% | Professional services tax invoices; project-specific scope confirmation |
| Project management fees | Yes | 100% | 100% | PM services tax invoices; project scope |
| Imported construction materials (import VAT) | Yes | 100% — import VAT on materials for zero-rated project | 100% | UAE Customs entry documents; import VAT deferment statements |
| Marketing / sales agent commissions | Yes | 100% — directly related to making zero-rated supplies | 100% | Sales agent invoices with 5% VAT; agent TRN; project identification |
| Legal and conveyancing fees | Yes | 100% | 100% | Legal firm tax invoices; TRN; project reference |
| Land purchase (from exempt seller) | No VAT on land purchase if exempt supply | No input VAT to claim — land sale is exempt | No input VAT to claim — land sale is exempt | Land is acquired without VAT (exempt); no input tax arises on acquisition |
| Head office overhead (mixed-use developer) | Partial — apportion | Apportion by zero-rated ÷ total revenue (partial exemption) | Full if all commercial; partial if mixed | Apportionment calculation; document methodology; annual review |
Capital Goods Adjustment Scheme (CGAS) — Mandatory for Large Properties: For UAE immovable property (buildings) with a cost of AED 5M or more, the Capital Goods Adjustment Scheme requires the initial input VAT recovery to be reviewed and adjusted annually for 10 years. If the proportion of taxable use changes (e.g. units originally planned as residential are reclassified as commercial, or vice versa), the annual CGAS adjustment must be calculated and declared in the VAT 201. Failure to apply CGAS adjustments to large property developments is a material VAT error that FTA auditors specifically test.
📊7. IFRS 15 Revenue Recognition & Corporate Tax
IFRS 15 revenue recognition is the single most important — and most audit-intensive — accounting and tax issue for UAE real estate developers. Since UAE Corporate Tax is computed on IFRS-based financial statements, the IFRS 15 methodology determines both the accounting revenue reported and the CT taxable income — project by project, period by period.
| IFRS 15 Issue | Correct Treatment | CT Impact | Common Error |
|---|---|---|---|
| Performance obligation — off-plan residential | Single PO for most off-plan residential sales — delivering the completed unit to the buyer. Recognise over time (PoC) if: buyer controls the asset as it's created AND developer has enforceable right to payment for performance to date. | Revenue recognised progressively over the development period; CT payable in each period based on PoC revenue | Deferring all revenue to handover date when over-time criteria are met; CT understated in pre-handover periods |
| Percentage of Completion (PoC) calculation | Input method: costs incurred to date ÷ total estimated costs. Or engineering PoC method based on physical completion. Must be consistently applied across all projects and all periods. | PoC % determines taxable revenue; a 10% error on a AED 1B project = AED 100M revenue misstatement | Using billing milestones or cash received as proxy for PoC — incorrect and FTA-challenged |
| Variable consideration — price escalation, variations | Include only to extent that it is highly probable the variable consideration will not be reversed. Unapproved price escalations: constrain at zero until approved. | Over-optimistic variable consideration inflates CT base; under-estimation defers recognition | Including unconfirmed price escalation in contract revenue before approval |
| Loss-making projects | If total project cost is expected to exceed contract revenue: recognise the full expected loss immediately under IAS 37. Do not spread over the project life. | Immediate loss recognition reduces CT in the period; deferred recognition overstates CT | Deferring project loss recognition hoping for cost reduction; results in CT overpayment in current period |
| Land component in off-plan sale | Determine whether the land supply and construction supply are separate performance obligations. If separate: allocate transaction price proportionally; recognise land PO when title transfers; construction PO over time. | Incorrect PO allocation distorts revenue timing for each component — affects CT in each period | Treating land and construction as a single PO when they should be separate — or vice versa |
🏛️8. Corporate Tax Planning for Real Estate Developers
| Developer Profile | CT Rate | Key CT Strategy | Priority Actions |
|---|---|---|---|
| Small developer / boutique project (<AED 3M revenue) | 0% SBR if <AED 3M | Elect SBR annually; IFRS 15 PoC accounts; maximise construction cost deductions | CT registration; SBR election; professional accounting from day one |
| Mid-size developer (AED 3M–100M revenue) | 9% — significant CT | PoC methodology optimisation; IAS 23 borrowing cost capitalisation; cost-to-complete provisions; loss project provisions | Annual CT 201; quarterly management accounts; full IFRS accounts; statutory audit |
| Large developer (AED 100M+ revenue) | 9% — very large CT; complex | Project-level CT planning; group structure; Participation Exemption for exits; JDA tax structuring; TP for intercompany | Dedicated CT team; CT group if eligible; TP study; external tax advisory |
| Free zone developer (JAFZA land, DSO) | QFZP analysis — income type matters | QFZP: most UAE real estate income is non-qualifying; analyse carefully. UAE property development income: typically 9% CT. | QFZP eligibility review; most property developers are taxed at 9% regardless of free zone |
| International developer with UAE projects | UAE PE analysis + 9% CT | Permanent establishment risk; group structure for UAE holding entity; Participation Exemption on exit; withholding tax analysis | UAE PE analysis; group CT structuring; transfer pricing for UAE project |
📊 Key CT Deductions for Real Estate Developers
🌍9. Land Acquisition & Cost Treatment
| Land Cost Item | IFRS / IAS Classification | CT Treatment | VAT Treatment |
|---|---|---|---|
| Land purchase price | IAS 2 Inventory (land held for development) → transferred to WIP | CT-deductible as part of COGS when units are sold (IFRS 15 PoC flows cost through P&L) | Land purchase: exempt supply — no VAT charged by seller; no input VAT to recover |
| DLD transfer fee (4%) | Capitalised as part of land cost (IAS 2) | CT-deductible as part of land COGS on unit handover | DLD fee is a government charge — no VAT |
| Land broker commission | Capitalised as part of land cost OR expensed if not directly attributable | CT-deductible; if capitalised: deducted on unit sale; if expensed: immediate deduction | 5% VAT on broker commission invoice — recoverable as input VAT (relates to making taxable supplies) |
| Infrastructure development on land | Capitalised into development cost (IAS 2 WIP) | CT-deductible as part of project COGS flowed through via PoC | 5% VAT on contractor invoices for infrastructure — 100% input VAT recoverable |
| Master community fee payable to master developer | Capitalised into project cost (IAS 2 WIP) | CT-deductible as project cost deducted via PoC | 5% VAT if master developer charges VAT on community fee — recoverable |
| Land held for future development (undeveloped) | IAS 2 Inventory — NRV test required at each reporting date | No CT deduction until development commences and costs flow through P&L | No VAT recovery on land holding costs (exempt supply) |
Real Estate Developer Tax — UAE's Most Complex Sector Handled
OneDeskSolution's real estate tax specialists handle UAE VAT on residential and commercial projects, IFRS 15 CT revenue, input VAT maximisation, RERA compliance, IAS 23 borrowing costs, Participation Exemption planning, and FTA audit defence for developers of every scale. Contact us today.
💵10. Customer Deposits & RERA Compliance
- RERA escrow — 100% of buyer payments must go into escrow: Under Dubai Law No. 8 of 2007, all off-plan residential developers in Dubai must maintain a RERA escrow account. 100% of all buyer payments must be deposited into the escrow account — not into the developer's operating account. Using escrow funds for non-construction operational costs is a criminal offence. Tax implications: escrow cash is not the developer's freely usable revenue — it must be tracked against project-specific construction costs.
- Accounting for buyer deposits — IFRS 15 contract liability: Advance payments received from buyers before IFRS 15 performance obligations are satisfied must be recorded as a contract liability (deferred revenue / advance from customer) on the balance sheet. Revenue is recognised progressively as construction progresses (PoC). The CT taxable income mirrors the IFRS 15 revenue recognised — NOT the cash collected from buyers.
- VAT on buyer payments — tax point at receipt: Unlike accounting, UAE VAT is generally payable at the earlier of invoice issue or payment receipt. A 30% instalment payment received from a buyer in Q1 triggers a VAT obligation in the Q1 VAT 201 return — even though IFRS 15 revenue is not yet recognised for that payment. For zero-rated residential units: this is a zero-rated supply, so no output VAT. Issue zero-rated invoices at each payment milestone.
- RERA escrow audit — quarterly and annual requirement: The RERA escrow account must be audited by a RERA-approved auditor quarterly and annually. The auditor verifies: all buyer payments deposited to escrow; all withdrawals for approved project costs only; construction progress justifies withdrawals. Non-compliance with RERA escrow is a criminal matter.
- Post-handover payment plan — accounting and tax: Many UAE developers offer post-handover payment plans. The developer hands over the unit but the buyer continues paying instalments. Tax considerations: has revenue been correctly recognised at handover? Is the remaining consideration collectible? Are credit risk provisions appropriate? CT: remaining revenue recognised on handover (if PO satisfied); remaining payments are receivable, not future revenue recognition events.
🏦11. IAS 23 Borrowing Costs & CT
IAS 23 (Borrowing Costs) requires that borrowing costs directly attributable to the acquisition, construction, or production of a qualifying asset be capitalised as part of the cost of that asset. For real estate developers with project finance facilities, this creates both an accounting requirement and a CT planning opportunity.
| Borrowing Cost Scenario | IAS 23 Treatment | CT Treatment | Planning Point |
|---|---|---|---|
| Interest on specific project finance loan (during construction) | Capitalise into WIP cost (mandatory) | CT-deductible when the capitalised interest flows through P&L as cost of goods sold on unit handover | IAS 23 defers the CT deduction to the point of unit sale — useful if project is profitable at high PoC before units are sold |
| Interest on general borrowing (partly used for project) | Capitalise portion attributable to qualifying asset (calculated per IAS 23 capitalisation rate) | CT-deductible via P&L; but general interest deduction cap (30% of EBITDA) applies to finance costs not capitalised | Maximise IAS 23 capitalisation to defer interest deduction to unit sale period — avoid 30% interest cap on general finance costs |
| Interest during suspension of construction | Stop capitalising when active development is suspended; expense to P&L | CT-deductible in the period expensed | Ensure construction suspension is documented; FTA may challenge capitalisation during extended suspension periods |
| Interest after project completion (pre-sale) | Stop capitalising on completion; expense to P&L | CT-deductible in the period expensed | Post-completion interest: no longer qualifying asset; immediately through P&L and CT-deductible |
🔄12. Property Disposals — CT & Participation Exemption
| Disposal Scenario | CT Treatment | Available Relief | Planning Strategy |
|---|---|---|---|
| Sale of individual residential units (inventory) | 9% CT on profit recognised per IFRS 15 PoC; each unit's revenue recognised progressively or at handover | No specific relief — standard CT on development profit; ensure full deduction of construction costs, land, financing | Maximise all cost deductions; accurate PoC methodology; IAS 23 borrowing cost capitalisation |
| Sale of completed commercial building (asset deal) | 9% CT on disposal gain (proceeds – NBV); no Participation Exemption on asset deals | No Participation Exemption on direct property asset sales | Consider share deal structure to access Participation Exemption; early planning before project completion |
| Sale of shares in property-holding entity (share deal) | Participation Exemption: 0% CT on share sale gain if conditions met | Participation Exemption: 5%+ ownership for 12+ months; PE conditions; not a speculative holding | Structure property projects into separate SPVs; hold for 12+ months; sell shares not assets for CT-free exit |
| Intragroup property transfer | Business Restructuring Relief (BRR) available if conditions met: 75%+ common ownership; not tax avoidance; certain other conditions | BRR: transfer at book value; deferred gain; no immediate CT if conditions met; 2-year clawback period | Formalise intragroup transfers using BRR; document commercial rationale; monitor 2-year clawback |
| Disposal of land held for development | If land is inventory: disposal gain = CT-taxable revenue. If investment property (IAS 40): capital gain may qualify for Participation Exemption (via share deal) | Asset deal: 9% CT on gain. Share deal: Participation Exemption if conditions met | Classify land holding (inventory vs. investment property) strategically; plan disposal structure |
Participation Exemption — The Most Powerful CT Planning Tool for Property Exits: The Participation Exemption (UAE CT Law Article 23) allows a UAE company to sell its shareholding in another UAE or overseas company with 0% CT on the capital gain — subject to conditions. For real estate: if a developer structures each major project into a separate Special Purpose Vehicle (SPV) and sells the SPV shares (rather than selling the property assets directly), the gain on the share sale may be entirely exempt from UAE CT. Key conditions: minimum 5% shareholding; held for at least 12 months continuously; subsidiary meets economic substance / not primarily passive investments. This planning can save 9% CT on potentially very large property disposal gains — making advance SPV structuring one of the highest-value tax advisory engagements for UAE property developers.
🌍13. Transfer Pricing for Real Estate Developer Groups
- Intercompany land transfers — arm's length pricing required: When a UAE real estate group transfers land or completed units between related entities (e.g. from a master developer entity to a project development SPV), the transfer price must be at arm's length — reflecting the open market value of the land or property. A transfer below market value from a profitable entity to an entity with lower expected profits creates CT risk: the FTA may adjust the transaction price to market value, increasing taxable income in the transferring entity.
- Management fees from parent to project SPV: Many UAE developer groups charge management fees from a head office entity to individual project SPVs — covering development management, design, sales, and administration costs. These management fees must be at arm's length. TP Disclosure Form required if related-party transactions exceed AED 3M in the CT period. Prepare cost-plus or comparable uncontrolled price analysis to support the management fee rate.
- Joint Development Agreement (JDA) structures: JDA arrangements — where a landowner contributes land and a developer contributes construction expertise — create complex related-party transaction questions. The allocation of profit between JDA parties must reflect the arm's length contribution of each party. FTA auditors specifically examine JDA profit allocations as potential income shifting between related UAE entities.
- TP documentation — TP Disclosure Form and local file: Related-party transactions above AED 3M in aggregate: TP Disclosure Form must be filed with the CT 201 return. For large developer groups with consolidated revenue above AED 3.15B: Master File + Local File + Country-by-Country Report (CbCR) required. Prepare contemporaneous TP documentation — do not wait until an FTA audit to reconstruct transfer pricing rationale.
🔍14. FTA Audit Readiness for Real Estate Developers
| FTA Audit Focus Area | What FTA Tests | Documentation Required | Risk if Missing |
|---|---|---|---|
| Input VAT recovery on residential construction | Verify 100% input VAT claimed on all residential construction costs; check for incorrect blocking | All contractor tax invoices; valid TRNs; project allocation records | Under-claimed input VAT = no FTA penalty but significant financial loss |
| Zero-rating of first residential supply | Verify completion certificate date; confirm unit was sold within 3-year zero-rating window | Municipality completion certificate; buyer SPA; handover documents; DLD transfer record | Post-3-year supply: reclassified as exempt; blocked input VAT recovery retroactively |
| PoC revenue basis (VAT 201 vs. IFRS 15) | Reconcile VAT 201 Box 2 (zero-rated supplies) to IFRS 15 revenue recognised per period | VAT 201 returns; IFRS 15 WIP schedules; management accounts; audited financial statements | VAT timing errors → penalties; CT revenue timing errors → CT assessment |
| RERA escrow VAT timing | Confirm buyer payments received are zero-rated in correct period; escrow receipts match VAT declared | RERA escrow bank statements; buyer payment schedules; VAT 201 return reconciliation | Late declaration of zero-rated supply VAT timing: administrative penalty |
| Mixed-use VAT apportionment | Verify apportionment methodology for input VAT on shared costs (commercial + residential); CGAS for buildings over AED 5M | Written apportionment methodology; annual CGAS calculation; revenue or floor area basis documented | Incorrect apportionment: overclaimed input VAT + 50% FTA penalty |
| Related-party contractor payments | Check that related-party construction costs are at arm's length; compare rates to market | TP documentation; comparable market rates; TP Disclosure Form if >AED 3M | Non-arm's length: excess cost disallowed for CT; potential VAT assessment |
🏆15. Our Real Estate Developer Tax Services
VAT Advisory
Residential zero-rating; commercial 5% VAT; mixed-use apportionment; CGAS; input VAT maximisation; FTA readiness
IFRS 15 & CT
PoC methodology; CT revenue recognition; loss project provisions; annual CT 201 filing; deduction maximisation
Disposal Tax Planning
Participation Exemption structuring; SPV planning; share vs. asset deal analysis; BRR for intragroup transfers
Transfer Pricing
Intercompany land transfers; management fee benchmarking; JDA profit allocation; TP Disclosure Form; local file
Accounting & Audit
IFRS 15 accounting setup; WIP schedules; RERA escrow audit; statutory audit; IAS 23 borrowing costs
FTA Audit Defence
VAT audit representation; CT audit support; input VAT position defence; voluntary disclosure; Tax Agent
❓16. Frequently Asked Questions
Complete Tax Services for UAE Real Estate Development Companies
From VAT on residential zero-rating and commercial property supplies, input VAT maximisation, IFRS 15 CT revenue recognition, Participation Exemption planning, IAS 23 borrowing costs, transfer pricing for developer groups, RERA escrow compliance, and FTA audit defence — OneDeskSolution provides specialist tax and advisory services for UAE property developers of every scale. Contact us for a free consultation today.
