UAE Corporate Tax: Key deadlines, thresholds and filing rules businesses need to know

UAE businesses navigating Corporate Tax need to keep track of several important thresholds and deadlines, from when they must register to how long they have to file a return and pay any tax due.

Corporate Tax applies to Tax Periods beginning on or after June 1, 2023, with requirements varying depending on whether the taxpayer is a company, individual conducting business or Free Zone Person.

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Here are some of the main rules businesses should know.

When do you need to register?

Companies and other juridical persons established in the UAE on or after March 1, 2024 must generally apply for Corporate Tax registration within three months of incorporation, establishment or recognition.

Different rules can apply to certain non-resident businesses.

For individuals conducting a business or business activity in the UAE, registration is required when annual Turnover exceeds Dh1 million.

Salary, Personal Investment income and Real Estate Investment income are not included when calculating this threshold.

Missing a required registration deadline can result in a Dh10,000 administrative penalty.

How much Corporate Tax is charged?

For most taxable businesses, Corporate Tax is charged at 0% on Taxable Income up to and including Dh375,000.

The portion of Taxable Income above Dh375,000 is generally taxed at 9%.

Importantly, Taxable Income is not the same as a company’s total Revenue. It is generally calculated using Accounting Income before making adjustments required under Corporate Tax rules.

When is the return due?

Most taxpayers must file their Corporate Tax Return and pay any amount due within nine months from the end of their Tax Period.

For example, a company with a financial year ending December 31, 2025 has until September 30, 2026 to file and pay.

Returns are submitted electronically through the Federal Tax Authority’s EmaraTax platform.

What about Free Zone companies?

Being based in a Free Zone does not automatically remove filing requirements.

A Qualifying Free Zone Person may benefit from a 0% rate on Qualifying Income, but Free Zone Persons are generally still required to register and submit a Tax Return.

Income that does not meet the qualifying conditions will generally be subject to 9% Corporate Tax.

Small Business Relief

Eligible Resident Persons with Revenue not exceeding DHS3 million in the relevant and previous Tax Periods may elect for Small Business Relief.

The relief is available for eligible Tax Periods ending on or before December 31, 2029.

Businesses claiming it must still submit a Tax Return.

Companies should also keep documents supporting their Corporate Tax Returns for at least seven years after the end of the relevant Tax Period, including accounting records, invoices and other supporting information.