Amazing Feature For
UAE Corporate Tax Registration & Filing Services
FTA Approved Tax Agent helping Free Zone and Mainland companies register, file, and stay compliant with UAE Corporate Tax law.
What is UAE Corporate Tax?
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Who Needs to Register for Corporate Tax?
| Entity Type | CT Registration Required? |
|---|---|
|
UAE Mainland company (LLC, Branch) |
Yes — mandatory |
|
Free Zone company (IFZA, SHAMS, JAFZA etc.) |
Yes — even if 0% rate applies |
|
Foreign company with UAE PE |
Yes |
|
Individual with UAE trade licence (AED 1M+) |
Yes |
|
UAE holding company |
Yes |
|
Natural person below AED 1M revenue |
Yes |
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UAE Corporate Tax Deadlines & Penalties
| Milestone | Timeline / Penalty |
|---|---|
|
CT Registration deadline |
Before first CT return due date |
|
Annual CT Return filing |
Within 9 months of financial year-end |
|
CT Payment due |
Within 9 months of financial year-end |
|
Late registration penalty |
AED 10,000 |
|
Late filing penalty |
AED 500/month (first 12 months), then AED 1,000/month |
|
Incorrect return penalty |
Up to AED 10,000 per violation |
Corporate Tax Deadline Calculator 2026
AB Capital Corporate Tax Services
FAQ
The standard UAE Corporate Tax rate is 9% on taxable income exceeding AED 375,000. Income up to AED 375,000 is taxed at 0%. Qualifying Free Zone entities may benefit from a 0% rate on qualifying income subject to meeting specific conditions under Federal Decree-Law No. 47 of 2022.
UAE Corporate Tax applies to financial years beginning on or after 1 June 2023. For a company with a calendar financial year (January–December), its first CT year is 2024, with the first CT return due by 30 September 2025.
All UAE-incorporated companies (mainland and free zone), foreign companies with a permanent establishment in the UAE, and individuals conducting business under a UAE trade licence with annual revenue exceeding AED 1 million must register for Corporate Tax with the FTA.
Free Zone companies must register for CT but may qualify for a 0% CT rate on qualifying income if they meet the Qualifying Free Zone Person (QFZP) criteria — including maintaining adequate substance, not electing to be subject to standard CT, and deriving income from qualifying activities. AB Capital advises on QFZP eligibility assessments.
The CT return must be filed within 9 months of the end of the taxable person’s financial year. For example, a company with a 31 December year-end must file by 30 September of the following year. CT payment is also due by this date.
The FTA imposes a penalty of AED 10,000 for failure to register for Corporate Tax within the required timeframe. Late filing penalties are AED 500 per month for the first 12 months, rising to AED 1,000 per month thereafter.
Small Business Relief allows eligible taxable persons with revenue not exceeding AED 3 million in the relevant tax period (and all prior periods) to elect to be treated as having no taxable income, effectively paying 0% CT. This is available for tax periods ending on or before 31 December 2026.
You are not legally required to use a Tax Agent, but using an FTA Approved Tax Agent like AB Capital significantly reduces the risk of errors, penalties, and missed deadlines. For companies with complex structures, transfer pricing obligations, or Free Zone operations, professional advice is strongly recommended.
Required documents typically include: Trade Licence, Memorandum of Association, Emirates ID and passport of authorised signatory, financial statements, and details of group entities. AB Capital manages the full registration process on your behalf.
A Free Zone holding company can potentially benefit from the 0% rate if its income qualifies as ‘qualifying income’ — such as dividends and capital gains from qualifying subsidiaries. However, income from UAE mainland subsidiaries or non-qualifying activities may be subject to 9% CT. Specialist advice is essential.
A QFZP is a Free Zone entity that meets specific conditions under UAE CT law, including: maintaining adequate substance in the Free Zone, deriving income from qualifying activities or qualifying counterparties, not electing to be subject to standard CT, and meeting other regulatory requirements. AB Capital provides QFZP eligibility assessments.
Foreign companies are subject to UAE CT if they have a Permanent Establishment (PE) in the UAE, earn UAE-sourced income, or are considered tax resident in the UAE due to effective management and control being exercised in the UAE.
Dividends received by a UAE company from another UAE company are generally exempt from CT, subject to the participation exemption conditions. Dividends from foreign subsidiaries may also qualify for exemption. Dividends paid to shareholders are not deductible for CT purposes.
Transfer pricing rules require transactions between related parties to be conducted at arm’s length — i.e., on the same terms as unrelated parties. UAE CT law mandates transfer pricing documentation for certain entities. Non-compliance can result in CT adjustments and penalties.
A taxable person may apply for CT deregistration when it permanently ceases its business activities. The deregistration application must be submitted to the FTA within 3 months of cessation. All outstanding CT returns and payments must be settled before deregistration is approved.
UAE CT is calculated based on accounting income under IFRS or IFRS for SMEs as the starting point, with specific adjustments prescribed by the CT law. Companies must maintain adequate financial records for at least 7 years.
For corporate entities, rental income from UAE property is generally subject to CT. However, natural persons earning rental income do not fall within the scope of UAE CT unless they are conducting a business activity under a trade licence with revenue exceeding AED 1 million.
Indian-owned businesses incorporated in the UAE are subject to UAE CT as resident taxable persons. The UAE-India Double Tax Avoidance Agreement (DTAA) may provide relief from double taxation on profits repatriated to India. AB Capital specialises in UAE-India cross-border structuring and CT advisory.
Interest on intercompany loans is subject to the General Interest Deduction Limitation Rule, which caps net interest deductions at 30% of adjusted EBITDA, with a de minimis threshold of AED 12 million. Intercompany interest must also comply with transfer pricing (arm’s length) rules.
CT registration with the FTA is free of charge when done through the EmaraTax portal. Professional fees for CT registration, return preparation, and advisory services vary depending on the complexity of your business. AB Capital offers transparent, fixed-fee CT packages — contact us for a tailored quote.
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