Corporate Tax Compliance in UAE

Corporate Tax (CT) is a category of direct tax on the net profit or income of business companies and other firms. It shall be charged on businesses with taxable income above AED 375,000 but may be exempted and deducted for small businesses, startups, and free zone companies.

For companies doing business in the UAE, knowledge and adherence to corporate tax regulations are key to maintaining smooth business operations and avoiding monetary fines. This guide offers an extensive overview of corporate tax filing within the UAE, including deadlines and penalties, as well as step-by-step registration and filing procedures.

The company must register for corporate tax within 90 days of incorporation. Otherwise, a fine of AED 10,000 will be imposed.

CORPORATE TAX RETURN FILING

Corporate tax return filing in the UAE involves, filing a comprehensive report of a company’s income and expenses to the Federal tax authority. The report, referred to as the Corporate Tax Return, is made by the Taxable Person for a particular tax period and contains information on the company’s tax liability and payment.

The submission should be done within the period specified under the Corporate Tax Law. Where the tax department asks for other documents or records, these need to be submitted to facilitate compliance.

THRESHOLD LIMIT TO FILE CORPORATE TAX

• Tax-Free Threshold: Companies with taxable income not exceeding AED 375,000 are charged 0% corporate tax.
• Tax Rate Above Threshold: The income above AED 375,000 is taxed at 9% of the net profit above AED 375,000.
• Corporate Tax Return Due Date in the UAE

Companies need to file their corporate tax return and pay any tax owed on or before the due date stated on their corporate tax certificate.

CORPORATE TAX RATES

TAXABLE PERSON:

TAXABLE INCOME	TAX RATE
Taxable income up to AED 37,5000	0%
Taxable income more than AED 37,5000	9%

QUALIFYING FREE ZONE PERSON:

TAXABLE INCOME/CATEGORY	TAX RATE
Qualifying Income	0%
Non-Qualifying Income-No basic exemption	9%

Documents required for CORPORATE TAX REGISTRATION

If the registrant is a natural person :

1. Emirates ID/PASSPORT of the taxable person

2. Trade Licenses

3. Trade license is the evidence. MoA /AoA is required

4. Emirates IDs, Passports, and Proof of Authorization of authorized signature

5. Proof of Address of the company

6. Authorized signatory’s email and phone number

If the registrant is a legal person or a partnership:

1. Certificate of incorporation

2. Decree Law, if you are a federal/immigrant government entity

3. Cabinet Decision, if you are a Qualifying Public Entity

4. COI is sufficient

5. Emirates IDs, and passports, of the manager assigned

6. Proof of Address of the company incorporated in UAE. Which is the Ejari/ lease agreement from the FZ

7. MoA/AoA,Authorized signatory’s email and phone number

STEP-BY-STEP PROCESS FOR CT REGISTRATION

STEP 1.Create or Access the EmaraTax Account

STEP 2.Select Corporate Tax Registration

STEP 3.Enter Input Entity Information and applicable information

STEP 4.Upload Mandatory Documents

STEP 5.Review & Confirm

STEP 6. Submit Application

STEP 7.FTA Review (TAT 20 working days)

STEP 8 .RCV Registration Certificate

STEP-BY-STEP PROCESS FOR CT FILING

STEP 1:Log into EmaraTax

Log in using your username/password or UAE Pass.

STEP 2:Access Corporate Tax Dashboard

STEP 3:Navigate to the “Corporate Tax” section to see your CTRN and tax period.

STEP 4:Start Filing Tax Return

• Click “File Tax Return” for the corresponding period to initiate Form CT-01.
• Complete the Return Form
• Fill in general information (name of entity, license, CTRN)
• Give financial information (revenue, profit, adjustments)
• Compute taxable income and calculate tax liability (9% on amount above AED 375,000)
• Upload required financial statements and voluntary documents
• Review & Submit
• Verify for errors and submit the return.

STEP 5:Pay Corporate Tax

• Pay through GIBAN, credit card, or e-Dirham before the due date.

STEP 6:Receive Confirmation

• Receive payment receipt and acknowledgment; download return and view history in “My Submissions.”

PENALTIES

Late Registration: AED 10,000

Late Filing:

• AED 500 per month for the initial 12 months
• AED 1,000 per month thereafter

CONCLUSION

Compliance with corporate tax payments in the UAE is not simply doing the law, it is demonstrating that a firm is accountable, reliable, and devoted to contributing to the nation’s advancement. meeting the deadlines, making appropriate use of accessible exemptions, and maintaining transparent finance documents, the business can elude penalties as well as engage more solidaristically with stakeholders, banks, and government offices.

Compliance with taxes also enables companies to have improved management of their funds, enhance the way they operate, and maintain best practices. With technology, specialized guidance, and continuous news on regulations, companies can simplify the process and make it more efficient.