First-Time Corporate Tax Filing in the UAE – A Complete Guide (2025)
The UAE’s introduction of Corporate Tax (CT) marks a major evolution in its fiscal framework, aiming to align with global tax standards while maintaining its attractiveness to investors. If you're preparing to file Corporate Tax for the first time, this guide explains what you need to know — from registration to submission — with accuracy and clarity.
Understanding Corporate Tax in the UAE
Corporate Tax is a federal tax imposed on the net profit of businesses operating in the UAE, as per Federal Decree-Law No. 47 of 2022.
Applicable Rates:
0% on taxable income up to AED 375,000
9% on taxable income exceeding AED 375,000
15% for certain large multinational corporations subject to OECD’s Pillar Two rules (i.e., with consolidated global revenue exceeding AED 3.15 billion)
Who Must File Corporate Tax in the UAE?
The Corporate Tax regime applies to:
UAE mainland companies
Free Zone entities (with conditions for 0% tax on qualifying income)
Foreign entities with a Permanent Establishment (PE) or nexus in the UAE
Natural persons (individuals) engaged in business or commercial activity, if annual turnover exceeds AED 1 million
Exempt entities include:
Government entities
Public benefit entities (approved by Cabinet)
Pension and investment funds (if approved)
Qualifying intra-group reorganizations (subject to conditions)
Step-by-Step Guide to First-Time Corporate Tax Filing
1. Corporate Tax Registration
Register through the EmaraTax portal (www.tax.gov.ae)
Mandatory for all taxable persons, even if exempt
Penalty for late registration: AED 10,000
2. Maintain Proper Accounting Records
Keep financial statements prepared per International Financial Reporting Standards (IFRS)
Businesses with revenue below AED 3 million may use simplified accounting (cash basis)
Maintain records for at least 7 years
3. Assess Taxable Income
Start with your accounting net profit from the financial statements
Adjust for:
Non-deductible expenses (e.g., fines, personal expenses)
Exempt income (e.g., dividends from UAE companies)
Reliefs (e.g., Small Business Relief or group relief)
4. File the Tax Return
Corporate Tax returns are filed annually, via EmaraTax
Deadline: Within 9 months after the end of the relevant financial year
Example: For FY ending 31 December 2024, the return must be filed by 30 September 2025.
5. Pay Corporate Tax Liability
Payment is due alongside the return
Late payment attracts monthly penalties and interest
Key Documents Required
When filing your return, prepare:
Copy of trade license and Emirates ID
Corporate Tax Registration Certificate
Audited financial statements (or reviewed, if applicable)
Adjusted tax computation schedule
Supporting ledgers for:
Revenue and expenses
Depreciation
Related party transactions
Free Zones and Qualifying Income
Free Zone Persons (FZPs) may benefit from a 0% Corporate Tax rate on qualifying income, if they meet the conditions to be a Qualifying Free Zone Person (QFZP), including:
Maintaining adequate substance in the Free Zone
Not electing to be taxed at the standard 9%
Earning only qualifying income (e.g., income from goods/services within the same Free Zone or outside UAE, or to other QFZPs)
Non-qualifying income is taxed at 9%.
What Happens If You Don’t Comply?
FTA imposes administrative penalties for non-compliance, including:
| Violation | Penalty |
|---|---|
| Failure to register | AED 10,000 |
| Late return filing | AED 500/month (increasing up to AED 55,000) |
| Inaccurate returns | AED 1,000 – AED 20,000+ (depending on severity) |
| Late payment | Interest + additional fines |
Useful Tips for First-Time Filers
Start early – Corporate Tax requires planning and clean accounting.
Use accounting software – Automate your bookkeeping and reports.
Work with a tax advisor – Especially if you’re unsure about Free Zone status, exemptions, or transfer pricing.
Check for reliefs – Consider Small Business Relief if your revenue is below AED 3 million.
Stay updated – Follow official FTA announcements and guides.
Final Words
Filing Corporate Tax for the first time in the UAE may feel complex, but with early preparation and the right guidance, it’s manageable. This new tax regime brings the UAE closer to global standards while remaining competitive and pro-business.
By staying compliant, you not only avoid penalties but also build a credible financial foundation for growth, financing, and expansion.
Need Professional Support?
If you're unsure about your obligations or want peace of mind, consult a FTA-registered tax agent or a licensed accounting firm.
Start today. Stay compliant. Build stronger business foundations.
info@ebdayeaccounting.com