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.

Quick answers

  • Who must file? Every Taxable Person registered for UAE Corporate Tax, including mainland LLCs, free zone entities, and foreign companies with a UAE Permanent Establishment. Qualifying Free Zone Persons file even if their qualifying income is taxed at 0%.
  • What is the deadline? Within 9 months of the end of your tax period. Tax payment is due on the same date.
  • What are the rates? 0% on taxable income up to AED 375,000. 9% on taxable income above AED 375,000.
  • Is there relief for small businesses? Yes. Small Business Relief lets eligible businesses with revenue up to AED 3 million elect zero taxable income for the period, available through tax periods ending on or before 31 December 2026.
  • Where do I file? EmaraTax at eservices.tax.gov.ae. Payment is via GIBAN bank transfer or card.

Who Must File a Corporate Tax Return?

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

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). If you are unsure how to read your own numbers, our primer on understanding financial statements as a UAE business owner is a useful starting point. 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 up to AED 3 million, allowing them to elect to be treated as having zero taxable income for the period. The relief is currently available through tax periods ending on or before 31 December 2026. Note that, similar to other relief regimes, transfer pricing rules still apply.

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.

Frequently Asked Questions

When is the UAE Corporate Tax return due? Within nine months from the end of your tax period. The same date applies to the tax payment. For a calendar-year business, the return for the year ended 31 December 2024 is due by 30 September 2025.

Do I need an audit to file my Corporate Tax return? Audited financial statements are mandatory if your revenue exceeds AED 50 million in the period. Below that threshold, reviewed or properly maintained accounts may be accepted, but audited accounts are best practice.

What if my taxable income is below AED 375,000? You still file the return. The first AED 375,000 of taxable income is taxed at 0%, and only the excess is taxed at 9%.

Can I claim Small Business Relief? If your revenue is at or below AED 3 million for the period, you can elect to be treated as having zero taxable income, available through tax periods ending on or before 31 December 2026. The election is not automatic, you have to make it on the return.

Do free zone companies have to file? Yes. Even Qualifying Free Zone Persons taxed at 0% on qualifying income have a filing obligation. See our note on the free zone 0% qualifying income rules.

What is the penalty for late filing? A monthly fixed penalty applies for late filing, in addition to interest on any unpaid tax. Penalties escalate the longer the delay, so missing the nine-month window is expensive.

Do I need to file a Transfer Pricing Disclosure Form? If you have transactions with related parties or connected persons, yes. The Transfer Pricing Disclosure Form is filed as part of the Corporate Tax return.

How we can help

We handle Corporate Tax registration, taxable income calculation, the TP Disclosure Form, and the filing itself, then stand behind it if the FTA asks questions. Book a call and we will scope your first return in 30 minutes.