How to File a Nil Corporate Tax Return in UAE

What is a Nil Corporate Tax Return?

A nil corporate tax return is an annual corporate tax filing in which the taxable income declared is zero — meaning no tax is payable for that period. Despite owing nothing to the Federal Tax Authority (FTA), the return must still be filed through the EmaraTax portal by the applicable deadline. A nil return is not the same as no obligation: every registered business must file, regardless of profit.

The most common reasons a business files a nil return include: electing Small Business Relief (revenue below AED 3 million), making a trading loss for the period, or having all income exempt from corporate tax (for example, qualifying dividend income or certain Qualifying Free Zone Person income).

Who Must File a Nil Corporate Tax Return?

Under Federal Decree-Law No. 47 of 2022, the filing obligation applies to all registered taxable persons. This includes:

• Small Business Relief (SBR) electors — businesses with total revenue below AED 3 million who elect for zero taxable income. The SBR election itself is made within the return.
• Loss-making businesses — if your business made no profit or incurred a net loss, you still file with zero taxable income and carry forward the loss.
• Qualifying Free Zone Persons (QFZPs) — those with 100% qualifying income and zero non-qualifying income will still file a return, reporting zero tax payable.
• Dormant companies — a company that is registered but has not traded during the period still has a filing obligation if it is registered for corporate tax.

Missing the nil return deadline carries the same penalties as missing a full return: AED 500 per month for the first 12 months, rising to AED 1,000 per month thereafter.

EmaraTax Portal Steps: Filing a Nil Return

Here is the step-by-step process to file a nil corporate tax return through the EmaraTax portal:

1. Log in to EmaraTax — Go to emaratax.gov.ae and sign in using your UAE Pass or registered credentials.
2. Select your entity — From the dashboard, click on the entity (company) for which you are filing.
3. Open the Corporate Tax section — Navigate to Corporate Tax → Tax Returns → select the relevant tax period.
4. Complete the return form — Enter your financial data. For a nil return, the revenue and net profit figures will be zero or negative. If electing SBR, tick the Small Business Relief election box.
5. Attach required documents — Even for a nil return, the portal may require you to upload financial statements or a declaration. Do not skip this step.
6. Review and submit — Check all figures, confirm the declaration, and submit. The portal will generate a confirmation receipt — save this as your filing record.
7. Confirm payment status — For a nil return, no payment is due. Confirm the zero balance is reflected in your portal dashboard.

Documents Needed Even for a Zero Tax Return

Even for a nil return, you must prepare the documents required for corporate tax filing before logging into EmaraTax. These typically include:

• Financial statements for the period (income statement and balance sheet)
• General ledger showing the basis for zero taxable income
• Small Business Relief eligibility calculation (if claiming SBR)
• Evidence of tax losses (if carrying forward losses)
• Bank statements confirming nil or minimal activity (for dormant companies)
• Your CT TRN (corporate tax registration number)