640,000 firms now under UAE corporate tax as FTA reports record compliance

Dubai: The Federal Tax Authority (FTA) has announced record levels of corporate tax compliance, with more than 640,000 businesses registered and a strong turnout in filing returns and settling dues within legal deadlines.

The FTA said this reflects the efficiency of the UAE’s tax legislation and digital systems, which align with international best practices and support businesses through streamlined electronic procedures.

The Authority expressed appreciation to corporate taxpayers for achieving compliance rates exceeding global benchmarks, noting that the first round of filings — covering financial years ending December 31, 2024 — was completed successfully by the end of September 2025.

Corporate response

Khalid Ali Al Bustani, Director General of the Federal Tax Authority, said: “Statistics show that hundreds of thousands of Corporate Tax returns and annual declarations have been processed from registrants whose tax period or financial year ended on December 31, 2024.

"This high level of tax compliance has been achieved as a result of the growing tax awareness among business sectors, and due to the ease of steps provided by the Authority for filing returns and settling due taxes through the ‘EmaraTax’ platform, which delivers round-the-clock digital tax services distinguished by clarity and efficiency.”

He added that thousands of requests were handled daily during peak filing periods, with support provided through the FTA Call Centre.

Exemptions encourage

Al Bustani said the UAE’s leadership has ensured a flexible and encouraging tax environment, introducing measures to support voluntary compliance.

“In line with the UAE leadership’s wisdom in implementing directives to maintain a tax legislative environment that encourages voluntary compliance and adapts flexibly to changes, several initiatives were launched to support Corporate Taxpayers and facilitate compliance,” he said.

These include a Cabinet Decision exempting corporate taxpayers and certain entities from administrative penalties for late registration, provided they file returns within seven months of their first tax period.

The FTA also extended the filing and payment deadline to 31 December 2024 for entities established on or after June 1 2023, and granted a grace period until March 31, 2025 for registrants to update their tax records without penalties.

Streamlining compliance

The FTA said all corporate tax procedures can be completed through the EmaraTax digital platform in a few simple steps, allowing businesses to register, file returns, and settle dues in minutes.

The platform, enhanced under the Zero Bureaucracy programme, continues to reduce administrative burdens and improve user experience.

These efforts, the FTA said, have delivered a “qualitative economic impact” by simplifying compliance, supporting business growth, and improving operational efficiency across the private sector.

National awareness plan

Al Bustani attributed the rise in voluntary compliance to the FTA’s extensive awareness initiatives. The Authority has implemented a two-year national awareness plan, conducting 154 sessions—both in-person and virtual—attended by 48,000 participants.

It also provides detailed guides, videos, infographics, and explanatory materials through its website, regularly updated to reflect new legislation and procedures.

FTA specialists have contacted thousands of corporate taxpayers through calls, SMS reminders, and email notifications to ensure timely compliance and help businesses avoid penalties.