Key Points
- A UAE company incorporated on or after 1 March 2024 must register for Corporate Tax within 3 months of incorporation.
- Individuals whose business turnover exceeds AED 1 million in a calendar year must register by 31 March of the following year.
- Late registration carries an AED 10,000 penalty, waived if you file your first return within 7 months of the end of your first tax period.
- Returns and payment are due within 9 months of the end of each tax period.
- Corporate Tax is 0% on taxable income up to AED 375,000 and 9% above it. Small Business Relief now runs to tax periods ending by 31 December 2029.
Corporate Tax in Brief
UAE Corporate Tax applies under Federal Decree-Law No. 47 of 2022 for financial years starting on or after 1 June 2023. Every taxable person, including Free Zone companies and companies with no profit, must register with the Federal Tax Authority (FTA) through EmaraTax, get a Corporate Tax TRN and file an annual return.
This guide covers the two dates SMEs most often miss: the registration deadline and the filing and payment deadline. It also covers the rates, Small Business Relief and the penalties.
Who Must Register
- Resident companies: every company and other juridical person incorporated in the UAE, including Free Zone persons, whatever its profit or size.
- Foreign companies effectively managed and controlled in the UAE.
- Individuals doing business (sole establishments, freelancers and similar) whose turnover from business activities exceeds AED 1 million in a calendar year.
- Non-resident persons with a permanent establishment or a nexus in the UAE.
- Some exempt persons, such as qualifying public benefit entities and investment funds, which must still register and file an annual declaration.
Corporate Tax Registration Deadlines
The deadlines are set by FTA Decision No. 3 of 2024, effective 1 March 2024.
| Who | Deadline |
|---|---|
| UAE company incorporated on or after 1 March 2024 (including Free Zone persons) | 3 months from the date of incorporation, establishment or recognition |
| Foreign company effectively managed and controlled in the UAE (on or after 1 March 2024) | 3 months from the end of its financial year |
| Resident individual with business turnover above AED 1 million | 31 March of the following calendar year |
| Non-resident individual | 3 months from meeting the conditions to be subject to tax |
| Non-resident company with a nexus in the UAE (on or after 1 March 2024) | 3 months from the date the nexus is established |
| UAE company incorporated before 1 March 2024 | A date in 2024 based on the month its licence was issued. All of these have now passed. |
Example: a mainland LLC incorporated on 10 February 2026 had to register by 10 May 2026. A freelancer whose 2026 business turnover exceeds AED 1 million must register by 31 March 2027.
If your company was set up before March 2024 and has never registered, it is already late. Register now. The penalty waiver below may still help.
Late Registration Penalty and the Waiver
Failing to register on time carries a fixed penalty of AED 10,000 (Cabinet Decision No. 75 of 2023, as amended by Cabinet Decision No. 10 of 2024).
The FTA waives this penalty if you file your first Corporate Tax return within 7 months of the end of your first tax period. The 7 months is shorter than the usual 9. Exempt persons qualify if they file their first annual declaration within 7 months of the end of their first financial year. If the penalty was already paid, it is credited back to your EmaraTax account. The waiver covers only the first tax period.
Rates: 0% and 9%
Under Cabinet Decision No. 116 of 2022, taxable income up to AED 375,000 is taxed at 0%, and taxable income above that is taxed at 9%. Different rules apply to Qualifying Free Zone Persons and to large multinational groups.
| Taxable income (AED) | Calculation | Corporate Tax (AED) |
|---|---|---|
| 300,000 | All within the 0% band | 0 |
| 500,000 | (500,000 − 375,000) × 9% | 11,250 |
| 1,000,000 | (1,000,000 − 375,000) × 9% | 56,250 |
Taxable income is not the same as accounting profit. Adjustments such as the 50% disallowance for client entertainment, fines, and donations to non-qualifying bodies, can raise it. Try our Corporate Tax calculator for a quick estimate.
Filing and Payment: The 9-Month Rule
The Corporate Tax return must be filed, and any tax paid, within 9 months of the end of the tax period. Your tax period is normally your financial year.
| Financial year ends | Return and payment due |
|---|---|
| 31 December 2025 | 30 September 2026 (now passed) |
| 31 March 2026 | 31 December 2026 |
| 30 June 2026 | 31 March 2027 |
| 30 September 2026 | 30 June 2027 |
| 31 December 2026 | 30 September 2027 |
The 9-month rule also applies to businesses claiming Small Business Relief, and exempt persons file their annual declaration on the same timeline. Returns are filed in EmaraTax, either by the business or by an FTA-registered tax agent.
Small Business Relief, Briefly
Small Business Relief (SBR) lets a resident business with revenue of AED 3 million or less be treated as having no taxable income for a tax period. It was introduced by Ministerial Decision No. 73 of 2023 for periods ending by 31 December 2026. Ministerial Decision No. 131 of 2026, announced by the Ministry of Finance on 7 August 2026, extends it to tax periods ending on or before 31 December 2029. The AED 3 million threshold is unchanged.
- Revenue must be AED 3 million or less in the current period and every previous period. Once you exceed it, you cannot claim SBR again.
- It is an election made in each return. You must still register, keep records and file on time.
- Qualifying Free Zone Persons and members of multinational groups with consolidated revenue above AED 3.15 billion cannot elect.
- While SBR applies, you cannot use other reliefs and deductions for that period. Transfer pricing documentation is not required, but the arm's length principle still applies.
Corporate Tax Penalties
Corporate Tax penalties are set by Cabinet Decision No. 75 of 2023, as amended.
| Violation | Penalty |
|---|---|
| Late registration | AED 10,000 (waivable as described above) |
| Late return | AED 500 for each month or part of a month for the first 12 months, then AED 1,000 a month |
| Late payment | 14% a year on the unpaid tax, charged monthly |
| Incorrect return | AED 500, unless corrected before the filing deadline |
| Voluntary disclosure of an error | 1% of the tax difference for each month or part of a month |
A business with a 31 December 2025 year-end that has not yet filed is already accruing the late-return penalty, at AED 500 a month from 1 October 2026.
A Simple Compliance Calendar
- Within 3 months of incorporation: register for Corporate Tax and record your TRN.
- Throughout the year: keep books that can support the return, including related-party transactions, fixed assets and non-deductible expenses.
- At year-end: close the books, prepare financial statements and check SBR eligibility.
- Within 7 months (first period only): file to secure the registration penalty waiver if you registered late.
- Within 9 months: file the return and pay the tax.
Your Corporate Tax TRN also matters for e-invoicing: your e-invoicing participant identifier is based on its first 10 digits. See our e-invoicing deadlines guide.
TaxMate does not file Corporate Tax returns itself. It keeps your books Corporate Tax-ready all year: related-party transactions, fixed assets and non-deductible items such as entertainment, fines and donations are recorded as they happen. A Corporate Tax worksheet then takes you from accounting profit to taxable income. When the return is due, our partner chartered accountant firm can review the figures and file in EmaraTax as a separate service. Estimate your liability with the free Corporate Tax calculator, see pricing, or book a demo.
Frequently Asked Questions
What is the Corporate Tax registration deadline for a new UAE company?
Three months from the date of incorporation, establishment or recognition, for companies set up on or after 1 March 2024 (FTA Decision No. 3 of 2024). This includes Free Zone companies.
When is the UAE Corporate Tax return due?
Within 9 months of the end of the tax period. For a 31 December 2026 year-end, the return and payment are due by 30 September 2027.
What is the penalty for late Corporate Tax registration?
AED 10,000. The FTA waives it if the first tax return is filed within 7 months of the end of the first tax period, and refunds it to your EmaraTax account if it was already paid.
Do I need to register if my company made a loss or is below AED 375,000?
Yes. Registration and filing are required regardless of profit. The AED 375,000 band only means the first AED 375,000 of taxable income is taxed at 0%.
Has Small Business Relief been extended?
Yes. Ministerial Decision No. 131 of 2026 extends Small Business Relief to tax periods ending on or before 31 December 2029. The revenue threshold stays at AED 3 million.
Does TaxMate file my Corporate Tax return?
No. TaxMate keeps your books Corporate Tax-ready and prepares the supporting worksheet. The return itself is filed in EmaraTax by our partner chartered accountant firm as a separate service, or by your own tax agent.
Sources
- FTA Decision No. 3 of 2024 on the timeline for Corporate Tax registration
- FTA Public Clarification CTP001: registration timelines for taxable persons
- FTA: waiver of the late Corporate Tax registration penalty
- FTA news, 26 September 2026: 30 September 2026 deadline and the 9-month filing rule
- MoF: Cabinet Decision No. 116 of 2022 on the AED 375,000 taxable income threshold
- Cabinet Decision No. 75 of 2023 and its amendments (Corporate Tax administrative penalties)
- MoF news, 7 August 2026: Small Business Relief extended to 31 December 2029
- Ministerial Decision No. 131 of 2026 amending Ministerial Decision No. 73 of 2023 on Small Business Relief
- FTA: Small Business Relief (Corporate Tax topic page)
This guide is general information, not tax or legal advice. Rules change, so check the current position with the FTA or a registered tax agent before you act.