UAE Corporate Tax — 9% over AED 375k.
FTA registration via EmaraTax + annual return filing within 9 months of year-end. Small Business Relief eligible if revenue under AED 3M. Effective for financial years starting on or after June 1, 2023.
- Tax rate
- 9%
- Threshold
- AED 375k
- SBR cap
- AED 3M
- Filing deadline
- 9 months
UAE Corporate Tax — what changed in 2023.
UAE Corporate Tax is a federal tax on business profits introduced by Federal Decree-Law No. 47 of 2022, effective for financial years starting on or after June 1, 2023. The rate is 9% on taxable income exceeding AED 375,000 per year. Registration with the Federal Tax Authority (FTA) is mandatory for all UAE entities regardless of profit — done via the EmaraTax portal. Free zone entities can retain 0% on qualifying income under Qualifying Free Zone Person rules. Small Business Relief is available for entities with annual revenue under AED 3 million, effectively treating taxable income as zero through tax periods ending on or before December 31, 2026.
6 steps from registration to filing.
Determine your tax registration deadline
FTA mandates corporate tax registration based on licence anniversary month. Existing entities must register according to FTA's published timetable; new entities must register within 3 months of incorporation. Failing to register on time triggers AED 10,000 penalty.
Register on EmaraTax portal
FTA's unified tax portal at https://eservices.tax.gov.ae. Register the entity, identify shareholders, register signatory. EmaraTax credentials issued within 1–3 working days.
Determine your tax period and elect Small Business Relief if eligible
Standard tax period: financial year (calendar or other). Small Business Relief regime available for entities with annual revenue under AED 3 million — taxable income treated as zero, simplified compliance. Election made at first return filing.
Maintain books per FTA standards
FTA requires audited or auditable accounts. Free zone entities and large mainland entities must use external auditors. SMEs can use bookkeepers if records are FTA-compliant. Records retained 7 years minimum.
File annual corporate tax return
Return due within 9 months of financial-year-end. For calendar-year filer (Jan 1 – Dec 31), return due by Sep 30 of following year. Filing via EmaraTax. Tax payable settled at filing — no instalments.
Pay 9% on taxable income above AED 375k (or zero under SBR)
Calculation: total taxable income minus AED 375,000 threshold, multiplied by 9%. Small Business Relief applicants pay zero. Free zone qualifying-income entities may apply 0% rate on qualifying income subject to QIE rules.
What it costs to get this wrong.
Cabinet Decision 75 of 2023 sets the federal Corporate Tax violation schedule. Penalties compound — late registration triggers AED 10,000, late filing adds AED 500/month, late payment adds 14% APR. The compliance retainer pays for itself by month 4 of any non-compliance scenario.
| Violation | Penalty | Reference |
|---|---|---|
| Failure to register for Corporate Tax on time | AED 10,000 (one-time) | Cabinet Decision 75/2023, Schedule 1 |
| Late filing of Corporate Tax return | AED 500/month (months 1–12), AED 1,000/month thereafter | Cabinet Decision 75/2023, Schedule 1 |
| Late payment of tax due | 14% per annum on outstanding amount, applied monthly | Cabinet Decision 75/2023, Schedule 1 |
| Submission of an incorrect return | AED 500 if voluntarily corrected before notice; AED 1,000 first incident; AED 2,000 repeat | Cabinet Decision 75/2023, Schedule 1 |
| Failure to keep required records (7 years) | AED 10,000 first incident; AED 20,000 repeat within 24 months | Cabinet Decision 75/2023, Schedule 1 |
| Failure to inform FTA of changes (registered details) | AED 1,000 first incident; AED 5,000 repeat within 24 months | Cabinet Decision 75/2023, Schedule 1 |
| Failure to facilitate FTA tax audit | AED 20,000 | Cabinet Decision 75/2023, Schedule 1 |
| Failure to settle Tax Assessment within 20 working days | 2% of unpaid tax + 4% monthly compounding | Cabinet Decision 75/2023, Schedule 1 |
Frequently asked questions
What are corporate tax requirements for UAE mainland?
UAE mainland companies registered with the Federal Tax Authority (FTA) are subject to a 9% corporate tax rate on taxable income exceeding AED 375,000 per financial year, effective for periods starting on or after June 1, 2023. Registration is done via the EmaraTax portal. Businesses with annual revenue below AED 3 million may qualify for small business relief. Tax returns must be filed within 9 months of the end of the relevant financial year.
How do I register for UAE corporate tax?
Register on the FTA's EmaraTax portal at eservices.tax.gov.ae. Provide entity details (DED licence number, shareholders, signatory), identify financial year, and submit. EmaraTax credentials issued within 1–3 working days. Registration is mandatory for all UAE entities regardless of profit — failing to register triggers AED 10,000 penalty per FTA's penalty schedule.
What is the small business relief threshold?
UAE businesses with annual revenue below AED 3 million can elect into the Small Business Relief regime, which treats taxable income as zero for tax periods ending on or before 31 December 2026. Election must be made on the corporate tax return. After 2026 the relief is reviewed; current law schedules its expiry but extensions are possible.
How do I file corporate tax in UAE?
File through the EmaraTax portal within 9 months of your financial year-end. Required: financial statements (audited or auditable), supporting schedules for taxable income calculation, payment of any tax due. SMEs claiming Small Business Relief file a simplified return. Late filing triggers AED 500 penalty + 1% monthly interest on tax owed.
What is the corporate tax rate for free zone companies?
Free zone companies retain a 0% corporate tax rate on Qualifying Income — income from qualifying activities under Cabinet Decision 100/2023. Non-qualifying income (including most income from mainland UAE customers) is taxed at the 9% rate. Mainland-vs-freezone-vs-mixed structures should be reviewed annually for tax efficiency. YABS partners with FTA-registered tax advisors for QIE structuring.
What happens if I don't register for corporate tax?
FTA imposes AED 10,000 penalty for failure to register on time, plus AED 500 monthly late filing penalty once registration is overdue, plus 1% monthly interest on any tax owed. Continued non-compliance triggers escalating penalties up to AED 100,000+ and potential trade licence suspension by Dubai DED. EmaraTax registration is mandatory for every UAE entity regardless of profit level.
Get tax-compliant
Annual compliance retainer covers corporate tax + VAT + UBO + ESR + licence renewal.
This page was last reviewed by the YABS compliance team in Q2 2026 and reflects current Dubai DED, Dubai Municipality, DHA, MOHRE, FTA, and DLD requirements.