UAE Corporate Tax Return: Who Must File, Deadlines and What to Prepare

Corporate Tax in the UAE at a glance

The UAE introduced Corporate Tax under Federal Decree-Law No. 47 of 2022. It applies to financial years starting on or after 1 June 2023, so most businesses have now filed, or are about to file, their first or second return.

The tax is paid on taxable income for each tax period, which is usually the business's financial year. Returns are filed and tax is paid online through the Federal Tax Authority's EmaraTax portal.

Rates

For most businesses, the rates are simple.

• 0% on taxable income up to AED 375,000
• 9% on taxable income above AED 375,000
• Qualifying Free Zone Persons can pay 0% on qualifying income, if they meet the conditions
• Large multinational groups are also subject to a domestic minimum top-up tax for financial years starting on or after 1 January 2025

Who must register and file

Every taxable person must register for Corporate Tax and file a return for each tax period, even if no tax is payable.

• UAE companies and other juridical persons, including free zone companies
• Foreign companies with a permanent establishment or a taxable presence in the UAE
• Individuals doing business in the UAE whose business turnover exceeds AED 1 million in a calendar year
• Free zone companies must file a return even if all their income qualifies for 0%

Filing deadline

The Corporate Tax return must be filed, and any tax paid, within nine months after the end of the tax period.

For a business whose financial year ends on 31 December 2025, the deadline was 30 September 2026. For a financial year ending 31 March 2026, the deadline is 31 December 2026. Work out your own date from your financial year end, and do not wait for the final month.

Small Business Relief

Resident businesses with revenue of AED 3 million or less in the tax period, and in every previous tax period, can elect Small Business Relief. They are then treated as having no taxable income for that period.

The relief is available only for tax periods ending on or before 31 December 2026, so it is close to its end. It must be elected in the return; it is not automatic. Qualifying Free Zone Persons and members of large multinational groups cannot use it. A business that elects the relief still has to register and file a return.

Penalties to avoid

Penalties apply from the first day of delay, so a missed deadline quickly becomes expensive.

• Late registration: AED 10,000
• Late filing: AED 500 for each month or part month in the first 12 months, then AED 1,000 per month
• Late payment: a monthly penalty at an annual rate of 14% on the tax unpaid
• Records must be kept for at least seven years after the end of the tax period

What to prepare before you file

Most of the work is in the accounts, not the return itself.

• Final financial statements for the tax period, prepared under IFRS
• Audited financial statements if revenue exceeds AED 50 million, or if you are a Qualifying Free Zone Person
• A list of transactions with related parties and connected persons, at arm's length prices
• Adjustments for non-deductible expenses, such as fines, entertainment above the limit and certain interest
• Details of exempt income, such as qualifying dividends
• Your Corporate Tax registration number and EmaraTax login

How FBS Advisory can help

Our UAE desk works online with businesses across the Emirates. We keep the books on Zoho Books, prepare IFRS financial statements, work out the taxable income and adjustments, and prepare and file the Corporate Tax return on EmaraTax before the deadline.