The UAE has introduced a federal Corporate Tax on business profits, effective from financial years starting on or after 1 June 2023 . All mainland companies and qualifying free-zone entities must register and file returns. The tax rate is 0% on taxable income up to AED 375,000 and 9% on profits above that threshold . In practice, most businesses with a calendar-year fiscal period will pay 9% on profits above AED 375k. Free zone companies that meet the required conditions can generally retain their existing 0% tax incentives.
A new filing regime means every eligible UAE business must obtain a Corporate Tax Registration Number (CTRN) and comply with reporting requirements. The Federal Tax Authority (FTA) has issued clear deadlines and rules. Below we summarize who must register, key deadlines (including the July 31, 2025 filing deadline), and how to comply to avoid penalties.
Who Must Register and Key Deadlines
All “taxable persons” under the Corporate Tax Law – essentially any company or individual conducting business in the UAE – must register for Corporate Tax. This includes free zone companies (that satisfy the substance and non-mainland trading conditions), branches of foreign companies, and even entities currently taxed as part of natural resource extraction. (Salary income and certain investment income remain exempt.) Note that UAE branches of UAE-headquartered companies do not register separately as they are part of the head office.
The FTA issued a Decision setting phased registration deadlines based on your license date or incorporation date . In general:
- Existing companies (licensed before 1 Mar 2024): Register by specific dates in 2024 according to when your trade license was issued. For example, licenses issued in January or February (of any year) needed to register by May 31, 2024. Licenses in Mar/Apr by June 30, May by July 31, and licenses issued in December 2024 had to register by Dec 31, 2024.
- Start-ups (on/after 1 Mar 2024): New companies formed on or after March 1, 2024 must register within three months of incorporation.
- No license as of 1 Mar 2024: Entities without any license by March 1, 2024 (for example, individuals who later register a business) must apply by May 31, 2024.
The table below (from FTA Decision No. 3 of 2024) shows key deadlines for existing companies:
| License Issued In… | Corporate Tax Registration Deadline |
|---|---|
| Jan or Feb (any year) | May 31, 2024 |
| Mar or Apr | June 30, 2024 |
| May | July 31, 2024 |
| Jun | Aug 31, 2024 |
| Jul | Sept 30, 2024 |
| Aug or Sept | Oct 31, 2024 |
| Oct or Nov | Nov 30, 2024 |
| Dec | Dec 31, 2024 |
In all cases, missing the above registration deadlines triggers an administrative penalty of AED 10,000. However, the FTA announced a penalty waiver program: if a business submits its first corporate tax return within seven months after its year-end, the AED 10k fine will be waived or refunded . For most UAE companies (with 1 Jan–31 Dec fiscal year), this means filing by July 31, 2025 to avoid penalties .
(See “Penalties & Waiver” below for details.)
How to Register on EmaraTax (UAE Corporate Tax Registration)
All Corporate Tax registrations are processed online via the FTA’s EmaraTax portal. The service is free of charge and available 24/7, with an estimated 30 minutes to complete a new registration. In practice, the steps are:
- Create an EmaraTax account: Register with your email and phone number (or log in via UAE PASS if you already have an FTA login).
- Enter your company: Add or select your business entity using your trade license details. (Existing VAT-registered companies can simply use their current EmaraTax profile and select the taxable person from the list .)
- Fill in registration details: Choose “Register for Corporate Tax” and provide requested information (company type, financial year dates, etc.). Attach required documents – for a company this means your valid trade license and the ID of an authorized signatory.
- Submit application: Once you review and submit, the FTA processes the request (normally within 20 business days). You will receive a Corporate Tax Registration Number (CTRN) once approved.
Tax Filing and Compliance in UAE
After registering, annual compliance requirements begin. Every registered business must file a Corporate Tax Return with the FTA at the end of its tax period. Returns are due 9 months after the end of the fiscal year . For example, companies on a 1st Jan–31st Dec year must file by September 30, 2025, and each September 30, 2025 thereafter for subsequent years. (If your financial year is different, adjust accordingly – but always adhere to the 9-month rule .)
The return will report your taxable profit or loss, applying the 0%/9% rate. Even if your profit is below the tax-free threshold or you owe no tax (e.g. a start-up in loss), you must still file a return or annual declaration. Keeping proper accounting records and documentation is essential. The FTA’s Corporate Tax Guide offers details on exempt income, free-zone rules, and accounting standards (see FTA official guides).
Key compliance points:
- File returns on time: As noted, submit the first return (or exempt-holder declaration) within 9 months of year-end . Failure to file is a violation.
- Pay any tax due: If your profits exceed AED 375k, calculate 9% tax on the excess and pay it via EmaraTax or approved banking channels. (For initial periods, the tax is due when filing the return).
- Keep records: Retain accounting records for at least 7 years. The FTA may audit returns and require supporting documents.
- Free Zone Incentives: If you’re a free zone company, ensure you meet all qualifying conditions each
year (e.g. no mainland trading), otherwise your preferential rate could be lost. Free zone businesses
still register and file in the same way.
Penalties, Waiver and Avoiding Fines
The UAE’s Corporate Tax regime includes strict penalties for non-compliance. Key penalties include:
- Late Registration: An automatic fine of AED 10,000 is imposed for each failure to register by the deadline.
- Late Filing: If you miss a return due date (9 months after year-end), penalties can apply (Cabinet Decision No. 75 of 2023 imposes fines and interest on unpaid tax).
- Errors or Late Payment: Submitting an incorrect return or delaying payment can lead to additional fixed or monthly penalties under the tax procedures law.
Importantly, the FTA has implemented a penalty waiver initiative to ease the transition. Any taxable person (including late registrants) can avoid or recover the AED 10,000 late-registration fine if they file their first Corporate Tax return (or annual declaration for exempt persons) within 7 months after their financial year-end . Concretely, most companies must file by July 31, 2025 to qualify. Whether you already paid the fine or not, timely filing will result in the fine being waived or refunded.
Consequences of non-compliance are serious. Beyond fines, persistent violations can lead to audit scrutiny, interest charges on unpaid tax, and possible legal action. The FTA has publicly warned that ignoring corporate tax obligations is a violation of UAE law. It’s therefore critical to register on time and meet all filing deadlines.
Avoid Fines & Stay Compliant with EMC
Don’t risk AED 10,000 in penalties. If your business isn’t registered for UAE Corporate Tax, the clock is ticking. With the July 31, 2025 deadline fast approaching, it’s critical to act now.
At Enigma Managment Consultants (EMC), we help SMEs, startups, and large enterprises navigate Corporate Tax with confidence. From securing your CTRN, setting up FTA-compliant systems, to filing your first return — our experts handle it all.
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