UAE reminds small businesses to file corporate tax returns even if no tax is due

Dubai: Small businesses in the UAE that qualify for Small Business Relief must still file their Corporate Tax returns on time, even if they are treated as having no taxable income under the relief, the Federal Tax Authority (FTA) has said.

The authority reminded businesses that eligibility for the relief does not remove their legal obligation to register for Corporate Tax, submit an annual tax return and maintain supporting financial records.

The FTA also urged companies whose financial year ended on December 31, 2025, to submit their Corporate Tax returns and pay any tax due by September 30, 2026.

The FTA clarified that businesses claiming Small Business Relief must elect to apply for the relief through their Corporate Tax return.

While eligible businesses benefit from a simplified tax return requiring less information, they are still legally required to submit the return within the prescribed deadline.

"Eligibility for the relief does not remove the obligation to file a Corporate Tax return. Businesses that elect the relief benefit from a simplified tax return, thereby reducing the amount of information required to be submitted," the FTA said.

The authority added that failing to file on time could result in late submission penalties and other compliance measures.

The FTA said Small Business Relief applies to eligible UAE resident businesses whose revenue does not exceed Dh3 million during the relevant tax period and all previous tax periods.

Under the scheme, an eligible business is treated as having no taxable income for Corporate Tax purposes.

"Small Business Relief treats an eligible resident person as having earned no taxable income for Corporate Tax purposes if its revenue does not exceed AED3 million for the relevant tax period and all previous tax periods," the authority said.

Businesses must also be able to provide evidence, if requested, showing that their revenue has remained below the Dh3 million threshold throughout the relevant tax periods.

The FTA stressed that businesses benefiting from the relief must continue maintaining proper financial records to support the information submitted in their tax returns.

These records allow the authority to verify revenue, taxable income and eligibility for the relief.

Depending on the nature of the business, companies should retain records including business transactions, assets, liabilities and ownership interests at the end of the tax period.

The authority encouraged businesses to prepare well before the filing deadline by gathering all documents needed to complete their Corporate Tax returns and ensuring any tax due is paid on time.

It said early preparation helps businesses meet their legal obligations efficiently while reducing the risk of penalties for late filing or non-compliance.

Abdulaziz Mohammed Al Mulla, Director General of the FTA, said the authority continues to improve its services to make tax compliance easier for businesses.

"The FTA continues to enhance its services in accordance with international best practices, providing comprehensive support to the business community, and facilitating compliance with tax legislation, including the Corporate Tax Law and its implementing procedures, with accuracy, efficiency, and ease," Al Mulla said.

He added that Corporate Tax registration, return filing and tax payments are available 24 hours a day, seven days a week through the EmaraTax digital platform.

Businesses can either submit returns directly through EmaraTax or appoint an FTA-approved tax agent to complete the process on their behalf.

The FTA also urged taxpayers to review the Corporate Tax Law, implementing decisions and official guidance available on its website before filing their returns.