Accounting for construction and contracting companies in Dubai
We cost each project while it runs, track payment certificates and retentions, and charge site payroll to the jobs that used it.
- Fixed monthly fees Agreed in writing before we start.
- Office in Business Bay ParkLane Tower, Park Regis.
- Filed on EmaraTax We submit your VAT and corporate tax returns.
- WhatsApp replies In working hours, Monday to Saturday.
What we fix in the first month
Many contractors only learn a job's margin at handover. We set up the books so you see it every month.
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Profit only known at handover
Costs are booked as they arrive and revenue as it is invoiced, so a job can look fine until its last stage.
We give each project its own budget and cost codes and report its margin every month.
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No work-in-progress figure
Without work done against cost to date and cost to complete, an overrun shows up too late to recover.
We prepare a monthly WIP schedule and agree it with your project managers.
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Retentions forgotten
Retention held by clients sits in one lump sum, and nobody chases it when the defects period ends.
We list retentions by client and release date and tell you when each one falls due.
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Subcontractor work not accrued
Work done but not yet invoiced is missing from the month, so the margin looks better than it is.
We accrue it monthly and reconcile when each subcontractor's statement arrives.
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Site labour in overheads
Site salaries, overtime and accommodation are booked as general overheads.
We allocate the WPS payroll and gratuity accruals to the projects that used the labour.
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VAT left until the cash arrives
Waiting for payment before accounting for VAT on a payment application can mean paying it late.
We check the VAT date of each application against your contract and invoices.
What your monthly report shows
We agree five or six measures with you in the first month and keep them stable, so the trend means something.
- Gross margin by project Earned revenue less cost to date, against the tender budget.
- Work in progress Over- or under-billing on each live job.
- Cost to complete Remaining budget against the latest estimate.
- Retentions receivable By client and by release date.
- Certified, invoiced and paid Where each payment application is waiting.
The full pack adds profit and loss against budget, cash and ageing. See MIS reporting
Tax points we check
Each point is taken from the law or FTA guidance named under it.
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VAT registration and returns
VAT is 5%. Registration is mandatory once taxable supplies and imports pass AED 375,000 over the previous 12 months. Returns and payment are due within 28 days of the end of each tax period.
Source: FTA, registration for VAT; filing VAT returns
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Staff accommodation and input VAT
Cabinet Decision 149 of 2026, generally in force from 1 October 2026, changed the VAT rules on employee accommodation and input tax. We review your recovery on staff housing against the new rules.
Source: Cabinet Decision 149 of 2026
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Corporate tax and audited accounts
Taxable income up to AED 375,000 is taxed at 0% and the rest at 9%. For tax periods starting on or after 1 January 2025, audited financial statements are required where revenue exceeds AED 50 million.
Source: Federal Decree-Law 47 of 2022; Ministerial Decision 84 of 2025
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Which accounting standard
For corporate tax, IFRS is the default. A business with revenue of AED 50 million or less may use IFRS for SMEs, which still needs a reliable estimate of cost to complete on long contracts.
Source: Ministerial Decision 114 of 2023
Frequently asked questions
Ask us on WhatsAppHow should a contractor recognise revenue on a long project?
Over the life of the contract, in line with the work performed, rather than only when invoices are raised. For corporate tax purposes IFRS is the default, and a business with revenue of AED 50 million or less may use IFRS for SMEs. Either way you need a reliable estimate of cost to complete.
When is VAT due on a retention?
It depends on how your contract and invoices treat the retained amount. We review the contract terms in the first month and track every retention, and the VAT on it, against its release date.
Will you work with our quantity surveyors?
Yes. The WIP schedule needs their view of work done and cost to complete. We prepare the financial side, agree the estimates with them each month and record the basis for each figure.
Can you run payroll for site workers?
Yes. We prepare the monthly WPS salary files, overtime and deductions, and accrue gratuity and leave for each worker, allocated to the projects they work on.
See the margin on every live project
Send us a list of live projects with their contract values. We will propose a job-costing set-up and a fixed monthly fee.
