Corporate Tax in the UAE at a Glance

The UAE introduced a federal corporate tax for financial years starting on or after 1 June 2023. It is administered by the Federal Tax Authority (FTA). For most business owners the key questions are simple: does it apply to me, how much will I pay, and what do I have to do and by when?

The Tax Rates

  • 0% on taxable income up to AED 375,000
  • 9% on taxable income above AED 375,000

Qualifying free zone companies may be taxed at 0% on certain qualifying income, but strict conditions apply, so a free zone license does not remove the need to check your position. Read our free zone Corporate Tax guide.

Who Needs to Register?

Corporate tax applies to UAE companies and to individuals or foreign businesses that carry on a business activity in the UAE. Registration is generally required even when your taxable income is below the AED 375,000 threshold, and even when you expect to pay 0%. Free zone companies are included. Individuals and freelancers have a separate AED 1 million turnover test; see our guide for freelancers and sole establishments.

Registration is done online through the FTA's EmaraTax portal. New companies generally have three months from incorporation to register, and late registration carries an AED 10,000 penalty. See our Corporate Tax registration guide for the full deadlines.

What You Will Usually Need:

  • Trade license and the license issue date
  • Details of owners, shareholders and managers
  • Emirates ID and passport copies for the authorised signatory
  • Financial year end date and basic financial information

Small Business Relief

Small Business Relief lets eligible businesses with revenue of AED 3 million or less treat their taxable income as nil for the relief period. The Ministry of Finance has extended it to tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131 of 2026), and certain businesses, such as some qualifying free zone persons, cannot use it. You still need to register and file a return to claim it. Read more in our Small Business Relief guide.

Filing Your Tax Return

Your corporate tax return must be filed within nine months of the end of your tax period. For a company with a 31 December year end, that means by 30 September of the following year. Any tax due must be paid by the same date.

Keep Proper Records

Corporate tax requires accurate accounting records that support every figure in your return. Businesses are generally required to keep these records for seven years, which is longer than the five years that applies to VAT records. Invoices, contracts, bank statements and your financial statements should all be organised and easy to find.

Common Mistakes That Lead to Penalties

  1. Registering late: A fixed administrative penalty (commonly cited as AED 10,000) can apply for missing the registration deadline.
  2. Filing late: Late returns attract monthly penalties for every month or part of a month that the return is outstanding.
  3. Paying late: Unpaid tax can attract additional charges until it is settled.
  4. Weak records: Missing or incomplete records can cause separate penalties and make your return harder to defend.
  5. Assuming a free zone is exempt: Free zone companies still need to register and meet the qualifying conditions.

Penalty amounts and relief measures change from time to time, so always confirm the current position on the FTA website or with an adviser. For the full list, see our Corporate Tax penalties guide.

A Simple Checklist for Business Owners

  • Confirm whether you are a taxable person and your registration deadline
  • Register on the EmaraTax portal
  • Decide whether Small Business Relief or free zone treatment applies to you
  • Keep your books up to date throughout the year
  • Diarise your filing and payment date, nine months after year end
  • Review your position with a tax professional before filing

How We Can Help

At Mizan Al Amana, we help businesses with corporate tax registration, accounting, return preparation and filing, and ongoing compliance. Contact us to make sure your business meets its deadlines and avoids unnecessary penalties.

This article is general information and not tax advice. Rates, thresholds and penalties can change, so please confirm the current rules with the Federal Tax Authority or speak to a tax adviser about your own situation.