How to Register and File Corporate Tax in UAE: 5 Simple Steps

The United Arab Emirates (UAE) introduced corporate tax to align with global standards and boost transparency. If you run a business in the UAE, understanding how to register and file corporate tax isn’t just important—it’s mandatory. Whether you’re operating in the mainland, a free zone, or as a multinational company, knowing the right steps ensures you stay compliant.

In this guide, we’ll break down the 5 simple steps to complete your corporate tax registration and filing in the UAE and avoid penalties.

What Is Corporate Tax in the UAE?

The UAE corporate tax is a direct tax imposed on the net profit of businesses. It applies to all entities engaged in commercial activities. The current corporate tax rate is 9% for profits above the exempt threshold, with a 0% tax rate for income below it.

Who Needs to Register for Corporate Tax?

• Mainland companies

• Free zone companies (some may be eligible for 0% if compliant)

• Foreign companies with UAE branches

• Sole establishments with commercial licenses

• Partnerships and entities with business income

Individuals earning employment income, rental income, or personal investment income are not subject to corporate tax.

Step 1 – Understand If Your Business Is Taxable

Before registering, determine if your business meets the threshold for taxation and if your activity is within scope.

Common Taxable Business Activities

• Professional services (consultancy, legal, accounting)

• Trading companies (import/export)

• Manufacturing units

• Real estate development

• Tech startups and online platforms

Exemptions may apply to government entities, extractive businesses, and certain free zone companies.

Step 2 – Create or Log in to Your EmaraTax Account

All corporate tax registration in the UAE is handled through the EmaraTax portal, an official platform launched by the Federal Tax Authority (FTA).

What You Need to Register

• Emirates ID and passport copy

• Trade license copy

• Memorandum of Association (MOA)

• Contact details (email, phone)

• Company structure details

• Business activity classification

Once your account is created, you can submit your corporate tax registration through the same portal.

Step 3 – Complete the Corporate Tax Registration Process

Once logged into the portal, go through the registration form, which asks for detailed business information. This is a critical step and should be done accurately.

Key Information to Fill

• Legal entity name and trade name

• Business activity and relevant economic sector

• Financial year start and end date

• Details of shareholders or owners

• Details of branches (if applicable)

After submitting, you’ll receive a Tax Registration Number (TRN) for corporate tax. Save this for all future filings.

Step 4 – Maintain Proper Financial Records

The UAE’s corporate tax law requires businesses to maintain financial statements and audit trails for at least 7 years. This ensures transparency and supports accurate tax filing.

What Records Are Required?

• Profit and loss statements

• Balance sheets

• General ledgers

• Bank statements

• Invoices and receipts

• Audit reports (mandatory for certain categories)

Small businesses must also ensure that bookkeeping is accurate, even if audited reports are not yet mandatory for them.

Step 5 – File Your Corporate Tax Return Annually

Every registered business must file a corporate tax return within 9 months of the end of their financial year. Filing is done via the EmaraTax portal using your TRN.

What’s Included in a Corporate Tax Return?

• Net profit before tax

• Adjustments (as per UAE CT law)

• Taxable income

• Final tax due (if any)

• Declaration by authorized signatory

Late filing or incorrect submissions may result in penalties, so professional review is recommended.

Corporate Tax Deadlines in UAE

Your filing deadline is based on your business’s financial year. For example, if your financial year ends on 31st December 2024, you must submit your tax return by 30th September 2025.

Timeline Summary

• Within 9 months after end of financial year – file tax return

• Annually – maintain books and update business details

• On changes – notify FTA immediately (e.g., ownership, business structure)

What Are the Penalties for Non-Compliance?

Failing to comply with UAE corporate tax regulations can lead to fines and legal trouble.

Common Penalties Include:

• Delay in registration – AED 10,000

• Delay in filing tax return – AED 1,000 first time, then increasing

• Failure to maintain records – AED 10,000 to AED 50,000

• Providing incorrect information – AED 20,000+

Can Free Zone Companies Be Exempt?

Yes, but only if they meet certain qualifying criteria under the Free Zone Tax Regime.

Conditions for 0% Corporate Tax in Free Zones

• Must carry out qualifying income activities (e.g., exports, holding shares, etc.)

• Should not earn non-qualifying mainland income

• Maintain proper accounting records

• Meet substance requirements (real business presence)

Failing to meet these can disqualify your 0% tax benefit, and you’ll be taxed at the standard rate.

Hiring a Tax Agent – Is It Necessary?

While the process can be done directly, many businesses hire registered tax agents to ensure full compliance.

Benefits of Hiring a Tax Agent

• Ensure correct registration

• Avoid late penalties

• Expert handling of annual filing

• Assistance in preparing financial records

• Help with audits or FTA notices

Look for agents approved by the Federal Tax Authority (FTA).

Learn More: Accounting Services in Dubai

Common Mistakes to Avoid While Registering and Filing

Understanding the process helps, but knowing what to avoid is just as important.

Don’t Make These Errors

• Using the wrong financial year

• Delaying registration

• Filing with outdated business info

• Ignoring recordkeeping rules

• Misclassifying free zone income

Proper planning and professional help can prevent such issues.

Conclusion

Navigating the corporate tax system in UAE can seem overwhelming—but it doesn’t have to be. If you follow these 5 simple steps, maintain accurate records, and file on time, you’ll stay compliant and stress-free.

FAQs

What is the corporate tax rate in UAE?

The standard rate is 9% on taxable profits above the exemption threshold. Below that, it’s 0%.

Is corporate tax mandatory for all companies?

Yes, all UAE businesses must register, even if they qualify for exemptions or have low/no income.

Do I need to submit audited financial statements?

For some companies—especially large or qualifying free zone companies—audited reports are mandatory.

When is the corporate tax return due?

Returns must be filed within 9 months of the end of your financial year.

How long does corporate tax registration take?

With all documents ready, it usually takes 5 to 10 business days.

Can I change my financial year?

Yes, but you must notify the FTA and explain the reason.

Is tax applicable to income from outside the UAE?

Only if it relates to business income earned in or through the UAE. Foreign-sourced income may be exempt.

What is a Tax Registration Number (TRN)?

A TRN is a unique number issued after corporate tax registration. It’s required for all future filings.

Can I get fined if I don’t register?

Yes. Non-registration or late registration results in penalties starting from AED 10,000.

What happens if I file my return late?

Late filing can result in incremental fines, starting at AED 1,000.