Many business owners assume Corporate Tax only matters once they make a big profit. In fact, almost every UAE business must register, and missing the deadline costs AED 10,000, even if you owe no tax at all.
This guide explains who must register, the deadline that applies to you, when to file your return, and how Small Business Relief works.
Who Must Register for Corporate Tax?
- All UAE companies, on the mainland and in Free Zones
- Companies with no profit, a loss, or that expect to pay 0%
- Foreign companies that are managed and controlled in the UAE
- Foreign companies with a permanent establishment in the UAE
- Individuals, such as sole traders and freelancers, whose UAE business turnover is more than AED 1 million in a calendar year
For individuals, salary and personal investment income don't count toward the AED 1 million. Only income from business activities does.
Registration Deadlines
Your deadline depends on what type of business you are:
| Business type | Deadline to register |
|---|---|
| UAE company set up on or after 1 March 2024 | Within 3 months of incorporation |
| Foreign company managed in the UAE | Within 3 months after its financial year ends |
| Foreign company with a UAE permanent establishment | Within 6 months of the establishment starting |
| UAE resident individual above AED 1 million | By 31 March of the following year |
Miss your deadline and the FTA charges a fixed penalty of AED 10,000. Registration is free and done online through EmaraTax. Being registered for VAT does not register you for Corporate Tax, so you need to apply separately.
Corporate Tax Rates
- 0% on taxable income up to AED 375,000
- 9% on taxable income above AED 375,000
- 0% on qualifying income of a Qualifying Free Zone Person, if every condition is met
Example: a mainland company with taxable income of AED 500,000 pays nothing on the first AED 375,000 and 9% on the remaining AED 125,000. Its Corporate Tax is AED 11,250.
When to File Your Return
You file one return a year, within 9 months of the end of your financial year. Any tax due must be paid by the same date.
| Financial year ends | Return and payment due |
|---|---|
| 31 December 2025 | 30 September 2026 |
| 31 March 2026 | 31 December 2026 |
| 31 December 2026 | 30 September 2027 |
Filing late leads to a monthly penalty. Paying late now costs 14% per year on the unpaid tax, charged monthly, under the penalty rules in force since 14 April 2026.
Small Business Relief
If your revenue is AED 3 million or less, you can choose to be treated as having no taxable income, so you pay no Corporate Tax. The Ministry of Finance has extended this relief to tax periods ending on or before 31 December 2029.
- Your revenue must be AED 3 million or less in the current tax period and in every earlier one.
- You must still register and file a return, and you claim the relief in that return.
- It is not available to Qualifying Free Zone Persons or members of large multinational groups.
Records You Must Keep
Keep your accounting records and supporting documents for 7 years after the end of the tax period. Businesses with revenue above AED 50 million, and Qualifying Free Zone Persons, also need audited financial statements.
Clean books make filing much easier. Our accounting and bookkeeping service keeps them ready all year.
Common Mistakes to Avoid
- Thinking 0% means no registration. Even businesses that owe nothing must register and file.
- Missing the 3-month window. New companies often find out about the deadline only after it has passed.
- Assuming Free Zone means tax-free. The 0% rate applies only to qualifying income, and only if every condition is met.
- Forgetting to claim Small Business Relief. It isn't automatic. You must elect for it in your return.
- Relying on VAT registration. Corporate Tax needs its own registration.
This guide is general information based on FTA rules as of 18 October 2026. Tax rules change, so speak to a consultant before acting on it.