The UAE Corporate Tax, introduced under Federal Decree-Law No. 47 of 2022, became effective for financial years beginning on or after 1 June 2023. This means many UAE businesses are now preparing to file their very first Corporate Tax Return.

If this is new territory for you, this guide walks you through every stage — from registering on EmaraTax to submitting your return and paying any tax due.

Who Must File a Corporate Tax Return?

Every Taxable Person registered for UAE Corporate Tax must file an annual Corporate Tax Return. This includes:

  • UAE mainland and free zone companies (subject to tax at 9% on taxable income above AED 375,000).
  • Qualifying Free Zone Persons who are subject to 0% on qualifying income (they still have a filing obligation).
  • Foreign companies with a Permanent Establishment in the UAE.

Exempted entities — such as UAE government entities, qualifying public benefit entities, and pension funds — are generally not required to file.

Step 1: Register for Corporate Tax on EmaraTax

Before you can file a return, your business must be registered for Corporate Tax. Registration is done through the EmaraTax portal at eservices.tax.gov.ae.

To register, you will need:

  • Trade licence copy
  • Memorandum of Association (MoA) or Articles of Association
  • Passport copies of shareholders and managers
  • Emirates ID copies (for UAE residents)
  • Business address and contact details
  • Financial year end date

Upon successful registration, the FTA will issue a Tax Registration Number (TRN) for Corporate Tax purposes (separate from your VAT TRN if you are also VAT-registered).

Step 2: Know Your Filing Deadline

The Corporate Tax Return must be filed within 9 months from the end of the relevant Tax Period (your financial year). The tax payment is due on the same date.

Examples:

  • Financial year ending 31 December 2024 → Return and payment due by 30 September 2025.
  • Financial year ending 31 May 2024 → Return and payment due by 28 February 2025.

Note that the FTA may extend deadlines in specific circumstances, but you should not rely on extensions. Filing late attracts a fixed AED 500 per month penalty for the first 12 months, rising to AED 1,000 per month thereafter.

Step 3: Prepare Your Financial Statements

The Corporate Tax Return is based on your audited or reviewed financial statements prepared under IFRS (or another FTA-accepted accounting standard). Your financial statements should include:

  • Income Statement (Profit & Loss): Showing gross revenue, cost of goods sold, operating expenses, and net profit before tax.
  • Balance Sheet: A snapshot of your assets, liabilities, and equity at year end.
  • Notes to the Accounts: Including related-party disclosures, depreciation policies, and significant accounting judgements.

If your revenue exceeds AED 50 million, audited financial statements are mandatory. Below this threshold, reviewed or internally prepared accounts may be accepted, though audited accounts are always best practice.

Step 4: Calculate Your Taxable Income

Your taxable income starts with your accounting profit and is adjusted for:

  • Exempt income: Qualifying dividends, capital gains from Participating Interests, and other exempt items are deducted.
  • Non-deductible expenses: Fines, penalties, personal expenses, and the 50% disallowance on entertainment costs are added back.
  • Transfer pricing adjustments: Related-party transactions not at arm’s length require upward adjustments.
  • Tax losses: Losses from previous periods (carried forward) can offset up to 75% of taxable income in a given year.

Corporate Tax Rates:

  • 0% on taxable income up to AED 375,000.
  • 9% on taxable income above AED 375,000.

Small business relief is also available for businesses with revenue below AED 3 million, allowing them to elect to be treated as having zero taxable income for the period.

Step 5: Complete the Transfer Pricing Disclosure Form

All taxable persons who have transactions with related parties or connected persons must complete the Transfer Pricing Disclosure Form as part of the tax return. This requires you to disclose:

  • Categories of related-party transactions.
  • The aggregate value of each category.
  • The transfer pricing method applied.

Step 6: File the Return on EmaraTax

Once your calculations are finalised, log into your EmaraTax account and navigate to the Corporate Tax section. The online form will guide you through:

  1. Confirming your tax period and accounting basis.
  2. Entering revenue, exempt income, and adjusted taxable income figures.
  3. Applying any available tax losses.
  4. Completing the Transfer Pricing Disclosure.
  5. Declaring and confirming the return.

Upload your financial statements and any supporting schedules as required.

Step 7: Pay the Tax Due

Any Corporate Tax liability calculated in the return must be paid by the same deadline as the filing. Payment is made through EmaraTax via:

  • Bank transfer (GIBAN — a unique government IBAN assigned to each taxpayer).
  • Online payment (credit/debit card).

Ensure the GIBAN reference is used correctly so the payment is matched to your account without delay.

Common Mistakes to Avoid on Your First Return

  1. Missing the deadline: Set a calendar reminder well in advance. The 9-month window closes faster than expected, especially for businesses going through their first audit simultaneously.
  2. Using unaudited accounts where audited are required: Revenue above AED 50 million triggers mandatory audit.
  3. Failing to disclose related-party transactions: All intercompany transactions must appear in the TP Disclosure Form, even if they appear immaterial.
  4. Incorrectly classifying exempt income: Not all investment income is automatically exempt — specific conditions apply, particularly for Participating Interests.
  5. Overlooking available tax losses: If your business incurred losses in earlier tax periods (post-June 2023), these can reduce your taxable income in profitable years.
  6. Neglecting the Small Business Relief election: Eligible businesses must actively elect for this relief — it is not applied automatically.

How Success Business Advisors Can Help

Filing your first Corporate Tax Return accurately is critical — errors attract FTA scrutiny and penalties. At Success Business Advisors, we provide end-to-end support:

  • Corporate Tax registration on EmaraTax.
  • Financial statement review and taxable income calculation.
  • Transfer Pricing Disclosure Form preparation.
  • Return preparation, review, and filing on your behalf.
  • Post-filing support in the event of FTA queries or audits.

File confidently and correctly the first time. Contact Success Business Advisors for professional Corporate Tax return assistance.