Corporate Tax Filing

What is UAE Corporate Tax

• The UAE introduced its Federal Corporate Tax regime via Federal Decree-Law No. (47) of 2022 (Taxation of Corporations and Businesses). It became effective for financial years starting on or after 1 June 2023. 

• It’s designed to bring the UAE in line with international corporate tax standards, encourage transparency, support economic diversification, and provide clarity to investors.

  
  

Key Rates & Thresholds

• AED 375,000 is the taxable income threshold up to which the corporate tax rate is 0%. If your taxable income is at or below AED 375,000, you pay no corporate tax. Shuraa Tax Accounting & Auditing+3MoF UAE+3EMCME+3

• Any taxable income above AED 375,000 is taxed at 9%. 

• Free Zone Entities may qualify for special treatment. Qualifying Free Zone Persons (QFZPs) may also benefit from 0% tax on “qualifying income” if they meet specific conditions. Non-qualifying income or income outside those conditions may be taxed. 

  
  

Who Must File / Register

Even if your business falls below the AED 375,000 threshold (so you owe 0% tax), registration and filing are generally still required. This includes:

• Mainland companies, regardless of profit levels.

• Free Zone Entities, whether or not they claim 0% tax, if they meet or are subject to conditions under the law.

• Foreign companies that have a Permanent Establishment (PE) in the UAE. 

  
  

What “Taxable Income” Means & Adjustment Rules

To compute taxable income, the following must be taken into account:

1. Start from accounting profit (profit or loss) in your financial statements for the tax period. 

2. Add back non-deductible expenses (expenses incurred that are not wholly and exclusively for business, or prohibited by law). Examples: fines and penalties, bribes, donations not qualifying under the law, dividend distributions, etc. 

3. Deduct exempt income — for example, income exempt under the corporate tax law, or income from shareholdings that qualify for dividends or capital gains exemptions. Also, Free Zone qualifying income may be exempt or taxed at favorable rates under specific conditions. 

4. There are limitations on interest deductions — rules that cap interest deductions relative to earnings before interest, tax, depreciation, and amortisation (EBITDA), etc., in certain circumstances. 

   
   

Filing Period & Deadlines

• You must file a corporate tax return within 9 months after the end of your financial year. 

• The tax payment (if any) is also due by that deadline. 

• For example: if your financial year ends 31 December 2024, the return must be filed by 30 September 2025. 

  
  

Required Documents & Records

To file accurately, you should have:

• Financial statements (profit & loss, balance sheet) prepared according to IFRS (or accepted UAE accounting standards). If the business is large or audited, audited statements may be required. 

• Trade license / business registration documents.

• Ownership documents: Memorandum & Articles of Association, owners’ IDs, etc. 

• Details of revenue, expenses, assets, depreciation/amortisation schedules. 

• Supporting documentation for deductions, exempt income, transfer pricing (if applicable), intercompany transactions, etc. 

• Records retention: you must keep documents and supporting records for a minimum of 7 years from the end of the tax period. 

  
  

Penalties & Consequences for Non-Compliance

• Failure to register by the deadline: fixed penalty of AED 10,000. 

• Late filing of the return: penalty per month, which grows if delays continue. 

• Late payment of corporate tax due: interest and penalties under the relevant Cabinet Decision (Decision No. 75 of 2023) and penalties escalate.

• Failure to maintain or produce records when requested: further fines and potential legal repercussions. 

  
  

Common Pitfalls & “Gotchas”

• Thinking that under-AED 375,000 means no work: Even if you earn below that threshold, registration and filing are often still required. It’s not enough just to say “I’m under AED 375,000 — I don’t have to file.” The law expects compliance. 

• Free Zone status misunderstanding: Just because you are in a free zone doesn’t automatically mean 0% tax. You need to fulfil qualifying conditions as a Qualifying Free Zone Person, and your income must be “qualifying income.” Otherwise, parts or all of your income may still be taxed. 

• Delay in registration: Missing registration deadlines leads to fixed penalties (AED 10,000), and even if you later file, this can’t always be waived except in limited “grace” or waiver programs. 

• Incorrect documentation or non-audited statements when audited ones are required: Can lead to disputes, adjustments, or even rejection. 

• Misclassifying income / misunderstanding deductible vs non-deductible expenses: Mistakes here cost more than a simple error, they can trigger audits.

  
  

Why This Service Is Critical & How We Help

Given all this complexity, many businesses struggle. Here’s why a professional Corporate Tax Filing Service is not optional, but essential — and what we specifically do to help:

1. Compliance Assurance
   We ensure your registration is done properly, deadlines met, and that you are treated correctly under the law — including correct use of the AED 375,000 threshold, Free Zone benefits, etc.

2. Tax Optimization
   We identify and apply all the legal reliefs, exemptions, deductions, or thresholds you qualify for. For example, ensuring that costs are properly allocated, that non-deductible expenses are not mistakenly claimed, that audit-required financials are prepared, etc.

3. Documentation & Audit Support
   We assist with record-keeping, preparation of financial statements per IFRS, and keep all supporting documents. In case the FTA requests information or audits your return, we provide full support.

4. Deadline Management
   We monitor your financial year ends, ensure registration reaches FTA in time, prepare your tax return well in advance of the deadline (9 months after year-end), and avoid paying late fees.

5. Risk Mitigation
   Avoid incorrect filings, under-estimations, and misinterpretations of the law. We also stay updated with legal changes (for example, top-up tax for large multinationals under OECD rules, if applicable) to prevent surprises.

6. Full Service
   From registration, bookkeeping alignment, financial statement prep, tax return computation, submission through EmaraTax (FTA portal), payment, and ongoing compliance.

   
   

Sample Workflow: What Happens When We Do It for You

1. Initial Assessment
   Understand your business model, financial year, revenue expectations, nature of income (domestic, foreign), whether in free zone or mainland, etc.

2. Registration / Verification
   If not already registered, obtain your Corporate Tax Registration Number (CTRN) via FTA. If in Free Zone, confirm whether you meet Qualifying Free Zone Person criteria.

3. Financial Statement Preparation / Review
   Gather or prepare financial statements. Check whether audited statements are needed. Review all revenues and expenses.

4. Adjustments & Tax Computation
   Adjust accounting profit for non-deductible items. Apply exemptions and reliefs. Compute taxable income. Determine amounts over AED 375,000 and apply 9% where applicable.

5. Return Draft & Review
   Prepare draft return. Have you complied with all documentation requirements? Check everything — revenue, expense detail, foreign income, transfer pricing (if needed), Free Zone income classification.

6. Submit via EmaraTax Portal
   Upload documents, fill in required fields, submit the return and pay any tax due.

7. Post-Filing & Audit Readiness
   Maintain records. Be ready for FTA queries. Ensure that your business continues to meet any conditions needed for Free Zone benefits, etc.

Recent / Special Updates to Watch Out For

• The UAE has introduced or is introducing measures for large multinational enterprises under OECD\\\'s Pillar Two / global minimum tax rules. If your group’s global turnover is high, you may face additional “top-up” tax obligations. Shuraa Tax Accounting & Auditing+2Reuters+2

• Small Business Relief scheme: businesses below certain revenue thresholds (for example, revenue ≤ AED 3 million) have simplified filing rules. ATB Legal+1

• Grace periods and penalty waivers: for example, the AED 10,000 penalty for late registration may be waived/refunded if first return (or declaration if exempt) is filed within a certain period (commonly 7 months after financial year end) under FTA’s waiver program. EMCME

  
  

Sample FAQs

Corporate Tax Filing Service

Corporate Tax Filing Service — Your End-to-End Assurance in UAE

Since June 2023, all businesses in the UAE that are subject to corporate tax (including Free Zone entities meeting specific conditions, Mainland companies, and foreign companies with permanent establishments) must not only calculate but also file annual corporate tax returns with the FTA. Even when your business earns profit below AED 375,000 (thus incurring a 0% rate), the law requires registration, compliance, and proper documentation. The region’s evolving tax environment means errors, delays, or mis-interpretation can lead to penalties, audits, unexpected tax liabilities or loss of Free Zone benefits.

Why It’s Complex:

• Understanding which income is taxable and what counts as “exempt income” (dividends, capital gains, Free Zone income, etc.).

• Distinguishing between deductible vs non-deductible expenses (fines, entertainment, interest caps, etc.).

• Ensuring documents are prepared per IFRS/accounting rules, audited if required, and properly substantiated.

• Meeting registration, return filing, and payment deadlines—these are legal obligations, with strict penalties.

• Keeping all supporting records for the statutory minimum (7 years).

• Free Zone entities must ensure they qualify every year; missing conditions can lead to losing preferential tax regime.

  
  

What We Do (Full Support):

• Pre-Filing Assessment: Evaluate your business structure, fiscal year end, income types, Free Zone eligibility, etc.

• Registration with FTA: Prepare your application, secure the Tax Registration Number (CTRN), ensure you\\\'re properly set up even if expecting 0% tax.

• Financial Statement Review: Check current books, ensure they comply with accounting standards, identify need for audit, adjust accounts where needed.

• Taxable Income Computation: Apply AED 375,000 threshold; identify all exemptions, reliefs; adjust for non-deductibles; ensure appropriate depreciation/amortisation handling.

• Draft Return & Verification: Internal review to ensure accuracy, completeness, and that all statutory disclosures are included.

• Submission & Payment: File through the EmaraTax portal, pay any tax due within the 9-month deadline.

• Audit & FTA Queries: Represent you in any FTA clarifications; handle amendments if required.

  
  

What You Get:

• Full compliance, avoiding penalties for late registration, late filing, late payment, or inaccurate returns.

• Clarity on your effective tax position: whether you fall under 0% or 9% and what that means financially.

• Assurance that Free Zone benefits (if applicable) are maintained correctly.

• Strong record-keeping to protect your business if audited.

• Efficiency and peace of mind — you can focus on your business, not tax confusion.