Corporate tax is a new financial regulation introduced in the UAE, starting from June 1, 2023. It is a direct tax applied to the profits of businesses operating in the country. The UAE government introduced a corporate tax to align with international tax standards and reduce its reliance on oil-based revenue.
Corporate Tax Rates in UAE
In the UAE, corporate tax applies to businesses starting from financial years on or after June 1, 2023. Here is a simple breakdown:
- 0% tax rate: For businesses earning annual profits of up to 375,000 AED.
- 9% tax rate: For profits exceeding 375,000 AED.
- 15% tax rate: This applies to large multinational companies that meet specific conditions under Pillar Two rules.
This makes it clear that smaller businesses with profits below AED 375,000 enjoy a 0% tax rate, while higher profits and large multinationals are taxed more. A summary table below gives you a clear view of these rates.
| Tier | Taxable Income | Corporate Tax Rate |
| 1. | Up to AED 375,000 | 0% |
| 2. | Above AED 375,000 | 9% |
| 3. | Large multinational companies with yearly revenue exceeding EUR 750 million (approximately AED 3.15 billion) may be subject to additional taxes under a global tax agreement (Pillar Two of the (OECD’s) Organisation for Economic Cooperation & Development (BEPS) base erosion and profit shifting project). | 15% |
Process of Corporate Tax Registration in UAE
Understand Your Eligibility
Confirm the eligibility of your business before you start the process and undertake that plan.
- UAE resident corporations (companies or firms established in a free zone and the mainland zone).
- Income generated by non-resident entities that are sourced from the UAE.
- Persons who engage in business with a valid trade license.
Gather Required Documents
- Details of a company’s trade license.
- Registration of business certificate if any.
- Memorandum of Association (MOA) or Articles of Association (AOA).
- Copy of Shareholder’s and Business owner’s Emirates ID and passports.
- Proof of financial statements/income earned.
- Contact details of the businesses including email and phone number.
Register on the FTA Portal
When signing up with the FTA you should go through the eServices portal. Register by creating an account, and providing the required company information and financial details while also making sure the relevant documents are provided in full.
What are the penalties for late Corporate Tax Registration in UAE?
Here are the penalties for late Corporate Tax Registration in UAE:
| S.No. | DESCRIPTION OF VIOLATION | ADMINISTRATIVE PENALTY AMOUNT IN AED |
| 1 | Missing the deadline to register for corporate tax. | 10,000 AED |
| 2 | Failure to keep the necessary records and information as required by the Tax Procedures Law and Corporate Tax Law. |
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| 3 | Failure to provide tax-related data, records, and documents in Arabic to the Authority when asked. | 5000 AED |
| 4 | Not applying for deregistration within the given timeframe. | 1,000 AED for late submission and an additional 1,000 AED monthly, up to a maximum of 10,000 AED |
| 5 | Not notifying the Authority about changes or updates to the tax record information. |
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| 6 | Failure to submit a tax return on time. |
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| 7 | Failure to settle corporate tax liabilities (if any) | If you don’t pay your taxes by the due date, a 14% annual penalty will be added to the unpaid amount each month. |
| 8 | Not settling corporate tax due after making a voluntary disclosure or receiving a tax assessment. | Late payment penalties are 14% per year of the unpaid tax amount. The penalty starts accruing:
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| 9 | Submitting an incorrect tax return. | 500 AED, unless corrected before the deadline for submission |
| 10 | Submitting a voluntary disclosure to correct mistakes in a tax return, tax assessment, or tax refund application. | If you don’t file your taxes, or request a tax refund, or respond to a tax assessment by the deadline, you’ll be charged a 1% penalty each month on the amount you owe or are owed, until you submit the necessary paperwork. |
| 11 | Failure to submit a voluntary disclosure before being informed of a tax audit. | There are two penalties for not filing taxes correctly:
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| 12 | Failure to submit or delay the submission of a declaration required by the Corporate Tax Law. | The monthly penalty is AED 500 for the first twelve months. After that, it increases to AED 1000 per month. |
Corporate Tax Filing in Dubai
After the registration has been completed, companies are required to prioritize corporate tax filing with the department, as well as keeping their records in order. A corporate tax return consists of detailing any relevant taxable income, and deductions, verifying this final document submission complies with the regulations set in place by the UAE. These services assist in the preparation and submission of the tax returns, endorsing completeness and accuracy thereby mitigating the penalty risk of 10000 AED.
Corporate Tax Filing Deadlines in UAE
Businesses in the UAE must file their corporate tax returns within specific deadlines based on their financial year. These deadlines give companies enough time to prepare their financial records and comply with tax laws. Here is an easy guide to the key filing dates:
For Companies Formed in 2023
- Companies established in June 2023 initially had to file their first corporate tax return by September 30, 2024.
- However, the UAE tax authority extended the deadline to December 31, 2024, giving businesses extra time to adjust to the new tax rules.
General Filing Deadlines
Most businesses follow the calendar year (January to December) as their fiscal year. Here is how the deadlines work:
- Fiscal Year: January 1, 2024, to December 31, 2024
- Filing Deadline: September 30, 2025
- Fiscal Year: April 1, 2024, to March 31, 2025
- Filing Deadline: December 31, 2025
For Non-Calendar Fiscal Years
Companies that don’t follow the calendar year have different deadlines:
- Fiscal Year: June 1, 2023, to May 31, 2024
- Filing Period: June 1, 2024, to February 28, 2025
- Fiscal Year: April 1, 2024, to March 31, 2025
- Filing Deadline: December 31, 2025
This structured system ensures businesses can comply with tax requirements while adjusting to the new regulations.
Why You Should Hire A Professional Corporate Tax Services In Dubai
Filing a corporate tax in Dubai is straightforward. A reliable firm provides tax services with an easy-to-follow procedure. This includes registering corporate taxes and filing them.
These tasks may include ensuring:
- To ensure Accuracy and Compliance
- Timely Submissions of returns
- Tailored Advice
When choosing the right tax consultant, look for those with:
- Proven expertise in UAE tax laws.
- Experience in handling corporate tax filing services for various industries.
- A track record of ensuring client compliance with the FTA.
As 2025 begins, companies must prioritize corporate tax compliance. With professional tax consultants at your side, the registration and filing will be kept simple so that your business remains compliant and reaps the benefits. At Intellect Chartered Accountants, we help businesses comply with tax obligations by assisting with registration, filing, and providing ongoing support. As a business located in a free zone or a mainland, we keep our guarantee of timely filings, accuracy, compliance, and peace of mind. We are dedicated to ensuring corporate tax compliance. Contact us today so we can ease your corporate tax journey and enhance your experience!
