As of 2024, all companies operating in the UAE are required to register for corporate tax, even if the UAE Corporate Tax (CT) does not apply to them. Businesses must also obtain a Taxpayer Registration Number (TRN), file annual corporate tax returns, and prepare financial statements in accordance with International Financial Reporting Standards (IFRS).
Failure to register for corporate tax on time will result in a penalty of AED 10,000, as set by the UAE Ministry of Finance.
The UAE is no longer a completely tax-free jurisdiction. Effective from June 1, 2023, a 9% corporate tax is imposed on the profits of legal entities and individuals conducting business activities, on profits exceeding AED 375,000.
Profits up to AED 375,000 are taxed at 0%.
Special tax conditions apply to businesses operating within free zones.
Under the Federal Tax Authority Decree-Law No. 47, every taxable person, including those operating in free zones, is obligated to:
Register for corporate tax,
Obtain a taxpayer registration number (TRN).
Registration for corporate tax must be completed through the EmaraTax Portal.
Step-by-step instructions for the registration process are available on the Federal Tax Authority (FTA) website.
Important:
Companies must register before filing their first corporate tax return.
The deadline for filing a corporate tax return is within 9 months after the end of the relevant tax period.
Failure to register on time will result in a penalty of AED 10,000.
Companies operating in the UAE are required to complete their corporate tax registration within 2024.
Below is a table outlining the specific deadlines:
| Month of License Issuance | Deadline for Corporate Tax Registration |
|---|---|
| January or February | May 31, 2024 |
| March or April | June 30, 2024 |
| May | July 31, 2024 |
| June | August 31, 2024 |
| July | September 30, 2024 |
| August or September | October 31, 2024 |
| October or November | November 30, 2024 |
| December | December 31, 2024 |
To register, you must either create a new account on the EmaraTax Portal or log in using your existing Federal Tax Authority (FTA) account.
Note: Registration is free of charge.
The FTA typically processes corporate tax registration applications within up to 20 business days.
Copy of the passport of the company’s license owner and shareholders
Copy of the Emirates ID of the license owner and shareholders
Copy of the company’s valid trade license
Company contact details (email address and phone number)
Contact details of authorized representatives (email address and phone number)
Memorandum and Articles of Association
Certificate of Incorporation
For mainland companies, the corporate tax rules are as follows:
If a company’s profit for the tax period is below AED 375,000, the corporate tax rate is 0%. However, companies are still required to file tax returns within the specified deadlines.
Profits exceeding AED 375,000 are subject to a 9% corporate tax.
Previously, companies in free zones enjoyed full tax exemptions. Under the new regulations:
Companies and individuals conducting business under a free zone license are also subject to corporate tax, but under special conditions:
0% tax applies to income from qualifying activities.
9% tax applies to profits from non-qualifying activities.
Companies that meet the conditions for engaging in qualifying activities are referred to as Qualifying Free Zone Persons (QFZPs).
To qualify as a QFZP, a company must:
Conduct one or more activities specified by the government as qualifying activities.
Operate within a designated free zone.
Own a sufficient amount of assets related to its activities.
Employ an adequate number of qualified staff.
Maintain a sufficient level of operational expenditures.
Natural persons registered as freelancers in free zones and operating under a commercial license are exempt from corporate tax if their annual turnover is less than AED 1 million.
If the turnover exceeds AED 1 million, the freelancer must:
Register for corporate tax,
File annual tax returns, and
Pay 9% corporate tax on profits exceeding AED 375,000.
Freelancers may also be eligible for the Small Business Relief scheme. Under this regime:
If the freelancer’s annual revenue does not exceed AED 3 million, they are exempt from paying corporate tax.
The Small Business Relief program is available until December 31, 2026.
Even persons exempt from corporate tax must register for CT purposes:
Foreign companies registered in offshore zones in the UAE are prohibited from conducting commercial activities within the Emirates or maintaining a permanent presence (such as renting an office).
As a result:
They are not subject to corporate tax, and
Are not required to register with the Federal Tax Authority (FTA).
If a company operates through multiple branches, it must register for corporate tax as one legal entity, listing all branches in the registration form.
Separate registration for each branch is not required.
Similarly, if an individual engages in multiple taxable business activities, they are treated as a single taxpayer for corporate tax purposes.
A single tax return must be filed, reporting the combined income and expenses across all business activities.
All companies registered for corporate tax purposes are required to maintain proper accounting records and submit annual financial statements.
Financial statements must be prepared in accordance with International Financial Reporting Standards (IFRS).
Taxable income is determined based on the net profit for the tax period, adjusted for specific items as outlined under the corporate tax law.
Maintaining accurate accounting records is essential to support income sources and ensure error-free tax filings.
To comply with these requirements effectively, companies are strongly advised to seek assistance from tax consultants and engage professional accounting and bookkeeping services in Dubai.
If a taxable person is already registered for VAT purposes, it is also required to register separately for corporate tax purposes. One does not exclude the other. Each tax regime has its own rules.
We offer a full range of services to support your business with corporate tax compliance in the UAE, including:
Registration with the UAE Tax Authority
Registration on the EmaraTax Portal
Corporate tax registration
VAT registration
Obtaining a taxpayer registration number
Filing corporate tax returns
Professional accounting and bookkeeping services
Preparation of financial statements in accordance with IFRS
VAT management and submission of quarterly VAT reports
visakingsdubai is a team of skilled tax advisors, accountants, legal experts, and business consultants with over 10 years of experience supporting businesses across the UAE.
If you or your company require assistance with corporate tax or VAT registration, accounting and bookkeeping, or have any related inquiries, contact us today — we are here to help!
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