What Is Corporate Tax in the UAE?
Corporate Tax (CT) is a direct tax on the net profit of businesses operating within the United Arab Emirates. Enacted through Federal Decree-Law No. 47 of 2022, it took effect from 1 June 2023. The tax is administered by the Federal Tax Authority (FTA) and forms part of the UAE's strategy to diversify revenue and comply with international tax standards like OECD BEPS 2.0.
Key Facts:
- Effective Date: Financial years starting on or after 1 June 2023
- Tax Authority: Federal Tax Authority (FTA)
- Tax Return Frequency: Annually
- Filing Portal: EmaraTax (https://eservices.tax.gov.ae)
Who Must Register for Corporate Tax?
Corporate tax registration is mandatory, regardless of whether tax is ultimately payable.
Entities Required to Register:
| Entity Type | Registration Required? |
|---|---|
| UAE mainland companies | Yes |
| Free zone companies | Yes |
| Branches of foreign companies | Yes |
| Foreign legal entities with UAE PE | Yes |
| Self-employed individuals or freelancers | If income > AED 375,000 |
| Government-owned businesses | If engaged in business |
| Investment funds & pension schemes | Subject to approval |
Note: Registration must be completed before corporate tax filing or risk penalties.
Need help with registration?
Speak to a UAE tax expert nowWhen to Register: UAE CT Deadlines (2024–2025)
The FTA announced staggered registration deadlines based on license issuance date in Decision No. 3 of 2024.
2025 Corporate Tax Registration Deadlines
| License Issue Date | Registration Deadline |
|---|---|
| Before 1 Jan 2022 | Between May–Aug 2024 |
| 1 Jan – 31 Dec 2022 | Between June–Sept 2024 |
| Issued in 2023 | Q4 2024 |
| Issued in 2024 or later | Within 3 months of issuance |
For new companies registered in 2025, the deadline is 90 days from the trade license issuance date.
Feel free to Contact us for help meeting your FTA deadline.
Required Documents for Corporate Tax Registration
To complete the registration process, the following documents must be submitted through the EmaraTax portal:
Mandatory Documents:
- Valid Trade License
- Copy of passport and Emirates ID (owner/authorized signatory)
- Company's Memorandum of Association (MoA)
- Proof of authorization (Power of Attorney, Board Resolution)
- Contact details (email, phone, business address)
- Financial year and activity declaration
All documents should be uploaded in PDF format, not exceeding 2 MB per file.
How to Register for Corporate Tax: Step-by-Step Guide
Step 1: Sign Up on EmaraTax
Visit the FTA e-Services portal: https://eservices.tax.gov.ae
- • Sign in using UAE Pass or register with email and password.
- • Complete profile verification.
Step 2: Access CT Registration
Navigate to:
Select your entity type: Mainland, Free Zone, Foreign Company.
Step 3: Enter Entity Information
- • Company name (English and Arabic)
- • Legal form (LLC, PJSC, Branch, etc.)
- • Trade license number, issue & expiry date
- • First tax period (e.g., 1 Jan 2025 to 31 Dec 2025)
Step 4: Upload Supporting Documents
Attach required PDFs:
- • Trade license
- • Owner's ID/passport
- • Authorization documents
- • MoA or AoA
Step 5: Authorized Signatory Setup
Designate a representative for tax matters and upload:
- • Emirates ID
- • Proof of authority
Step 6: Review & Submit
- • Double-check all details.
- • Click Submit to forward the application to the FTA.
Step 7: Receive TRN (Tax Registration Number)
After approval (typically 5–20 working days), you will receive:
- • Tax Registration Number (TRN)
- • PDF confirmation letter
Understanding the Corporate Tax Rates in UAE
| Taxable Income Threshold | Corporate Tax Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
| Multinational Groups (OECD Pillar Two) | 15% (minimum) |
Supporting Growth
The 0% threshold supports startups and SMEs, while larger firms are taxed at 9%, one of the lowest global Corporate Tax rates.
Global Comparison
The average corporate tax rate globally is 23.6%, according to the OECD (2023).
Special Cases: Free Zones, Foreign Companies, and Exempt Persons
Free Zone Companies
- Must register, even if taxed at 0%.
- Eligible for 0% on "qualifying income" from:
- Other free zone entities
- Foreign clients
- Certain qualifying activities (e.g., trading, manufacturing)
Must meet conditions:
- Maintain adequate substance
- Not voluntarily opt into the 9% regime
- Prepare audited financial statements
Foreign Companies
If a foreign company has:
A permanent establishment (PE) in the UAE
Generates UAE source income
It must register for corporate tax.
Exempt Persons
Some entities are exempt from tax but must still register:
| Exempt Entity Type | CT Registration Required |
|---|---|
| Public benefit organizations | Yes |
| Government entities (non-commercial) | Yes |
| Regulated pension funds | Yes |
| Investment funds (under conditions) | Yes |
Exempt status is granted only after FTA approval.
FTA Portal Walkthrough
The EmaraTax portal supports registration for:
Corporate Tax
VAT
Excise Tax
Features include:
Multilingual interface
Available in Arabic and English
Real-time document validation
Instant verification of uploaded documents
Dashboard with all registered tax accounts
Centralized view of all tax registrations
Access to historical filings
View penalties and returns history
Need visual guidance?
For a visual guide, users can access the FTA's user manuals and videos in the Help Section.
Visit FTA Help SectionWhat Happens After Registration?
Once your registration is approved:
You'll receive your TRN and official certificate.
You can file your first return after your first tax period ends.
You must:
- Maintain books of account for at least 7 years
- Comply with transfer pricing if applicable
- Prepare financial statements (audited if revenue > AED 50M)
Need help with bookkeeping or tax filing?
Explore our accounting servicesPenalties for Non-Compliance
Failing to register or comply with corporate tax requirements can result in fines:
| Offense | Penalty (AED) |
|---|---|
| Failure to register on time | 10,000 |
| Late submission of return | 1,000–2,000 |
| Inaccurate declaration | Up to 20,000 |
| Failure to maintain records | 10,000–50,000 |
Additional Consequences
FTA may also block business licenses or prevent access to government services.
Frequently Asked Questions (FAQs)
Q1: Do I need to register if my income is under AED 375,000?
Yes. Registration is mandatory, even if you qualify for 0% tax.
Q2: Can I register multiple companies under one TRN?
No. Each legal entity must register separately and obtain its own TRN.
Q3: What if my company is dormant?
You still need to register and file an annual tax return, even if zero income is declared.
Q4: Are there any exemptions for small businesses?
The Small Business Relief program may apply to entities with revenue under AED 3 million, subject to conditions.
Best Practices and Compliance Tips
Register Early
Register early to avoid last-minute issues.
Organized Records
Maintain organized records and hire an accountant if needed.
Transfer Pricing
Understand Transfer Pricing if your company is part of a multinational group.
Stay Informed
Sign up for FTA email alerts for deadline reminders.
Professional Help
Consider appointing a registered UAE tax agent for full compliance.
Useful Resources
Conclusion
Registering for corporate tax in the UAE is a legal obligation and a foundational step in financial compliance. Regardless of whether your business pays 0% or 9%, registration ensures alignment with the FTA's requirements and protects your operations from penalties.
By following the step-by-step guide above, preparing the correct documents, and understanding your entity type's responsibilities, you'll secure a smooth registration process and set your business up for continued compliance under the UAE's evolving tax framework.
Take Action Now
Register through EmaraTax well before your deadline and stay ahead of enforcement measures.
Ready to Register? Let First Idea Consultant Help You
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