01
CT Registration
Deadline review, EmaraTax application and Corporate Tax Registration Number follow-up.
LC4763-01Ministry of Economy Auditors Registry
30004113FTA Tax Agency Registration
Audit · Tax · TPIntegrated UAE compliance support
Two UAE OfficesDubai and Abu Dhabi
Corporate Tax in the UAE: The Essential Position
UAE Corporate Tax is a federal tax on business profits under Federal Decree-Law No. 47 of 2022, generally applying to financial years beginning on or after 1 June 2023. Under the standard regime, Taxable Income up to AED 375,000 is taxed at 0%, and the portion above AED 375,000 is taxed at 9%. UAE mainland and Free Zone companies are generally required to register, even where no tax is payable, subject to statutory exemptions and registration exceptions.
9%Standard Corporate Tax rateApplied to the portion of Taxable Income above AED 375,000.
AED 375K0% standard-rate bandApplicable under the standard Corporate Tax regime.
AED 3MSmall Business Relief thresholdRevenue test applies to current and previous relevant periods.
2029SBR availability extendedFor eligible periods ending on or before 31 December 2029.
9 MonthsReturn and payment deadlineCalculated from the end of the relevant Tax Period.
AED 10KLate-registration penaltyA waiver or refund may be available where FTA conditions are met.
What Is UAE Corporate Tax and What Rates Apply?
UAE Corporate Tax is a direct federal tax administered by the Federal Tax Authority. It generally applies to UAE mainland juridical persons, Free Zone Persons, foreign juridical persons effectively managed and controlled in the UAE, Non-Resident Persons with a UAE Permanent Establishment or other taxable nexus, and natural persons conducting a Business or Business Activity in the UAE where annual Turnover exceeds AED 1 million.
For natural persons, Wages, Personal Investment income and qualifying Real Estate Investment income are generally outside the Corporate Tax Business or Business Activity scope. Certain government entities, public benefit entities, investment funds and other persons may be exempt where all statutory conditions are met.
| Regime or income category | Rate / treatment | Key condition |
|---|---|---|
| Standard regime: Taxable Income up to AED 375,000 | 0% | Applies to taxable persons subject to the standard Corporate Tax rates. |
| Standard regime: Taxable Income above AED 375,000 | 9% | 9% applies only to the portion above AED 375,000. |
| QFZP — Qualifying Income | 0% | All QFZP conditions must be met throughout the Tax Period. |
| QFZP — Taxable Income that is not Qualifying Income | 9% | The AED 375,000 0% standard-rate band does not apply to a QFZP. |
| Small Business Relief | No Taxable Income | Eligible Resident Person; AED 3 million Revenue test; election required for each eligible period. |
| UAE Domestic Minimum Top-up Tax | 15% minimum ETR | For in-scope UAE entities of MNE Groups meeting the EUR 750 million group-Revenue test; effective for Fiscal Years starting on or after 1 January 2025. |
The 9% rate is not charged on total profit. Under the standard regime, it applies only to the portion of Taxable Income above AED 375,000. QFZPs and entities within the Domestic Minimum Top-up Tax regime follow different rules.
The standard 9% rate, clearly explained
If a business has AED 575,000 of Taxable Income under the standard regime, the first AED 375,000 is taxed at 0% and only AED 200,000 is taxed at 9%. The Corporate Tax liability would therefore be AED 18,000, before considering any applicable credits or other adjustments.
This distinction between Revenue, accounting profit and Taxable Income is essential when estimating the actual Corporate Tax exposure.
Who Must Register — and by What Deadline?
Late registration can trigger an AED 10,000 administrative penalty. Corporate Tax registration may still be required even where the business expects no tax liability.
Taxable juridical persons must register through the EmaraTax portal within the applicable FTA timeline. Corporate Tax registration is separate from VAT registration and produces a separate Corporate Tax Registration Number.
Historic deadlines for entities established before 1 March 2024
The deadline was determined by the month in which the entity’s licence was issued, irrespective of the year of issuance:
| Licence issuance month | Corporate Tax registration deadline |
|---|---|
| January or February | 31 May 2024 |
| March or April | 30 June 2024 |
| May | 31 July 2024 |
| June | 31 August 2024 |
| July | 30 September 2024 |
| August or September | 31 October 2024 |
| October or November | 30 November 2024 |
| December | 31 December 2024 |
UAE entities incorporated on or after 1 March 2024: a Resident juridical person, including a Free Zone Person, generally must apply within three months from its date of incorporation, establishment or recognition. Separate timelines apply to foreign entities effectively managed and controlled in the UAE and to Non-Resident Persons with a UAE Permanent Establishment or nexus.
Natural persons: a Resident natural person conducting a Business or Business Activity in the UAE generally must register when total Turnover from those activities exceeds AED 1 million in a Gregorian calendar year. The deadline is generally 31 March of the following calendar year.
Late-registration penalty waiver: the AED 10,000 penalty may be waived or refunded where the applicable conditions are satisfied, including submitting the first Tax Return within seven months from the end of the first Tax Period. See the FTA waiver guidance.
Small Business Relief — Extended Through 2029
Under Article 21 of the Corporate Tax Law, Ministerial Decision No. 73 of 2023 and Ministerial Decision No. 131 of 2026, an eligible Resident Person may elect for Small Business Relief for a relevant Tax Period ending on or before 31 December 2029. The Revenue threshold remains AED 3 million.
How SBR works: an eligible person that elects SBR is treated as having no Taxable Income for that Tax Period and completes a simplified Corporate Tax return. SBR is a relief, not a separate 0% tax rate.
Core Small Business Relief conditions
- The applicant must be a UAE Resident Person for Corporate Tax.
- Revenue must not exceed AED 3 million in the current and all previous relevant Tax Periods.
- The election must be made in each eligible Corporate Tax return.
- QFZPs cannot elect Small Business Relief.
- Constituent Companies of large MNE Groups are excluded.
Important: an SBR election prevents the business from accruing or using Tax Losses or Net Interest Expenditure for that relief period. Eligibility and commercial effect should be assessed before filing.
Qualifying Free Zone Person: Protecting the 0% Rate
A Free Zone Person is treated as a QFZP when it meets the statutory conditions; QFZP status is not obtained by making an election in the Tax Return. A Free Zone Person may instead elect to be subject to the standard Corporate Tax regime. The current Qualifying Activities and Excluded Activities rules are contained in Ministerial Decision No. 229 of 2025, which repealed and replaced Ministerial Decision No. 265 of 2023.
Adequate substance
Adequate assets, qualified employees and operating expenditure in a Free Zone.
Adequate assets, qualified employees and operating expenditure in a Free Zone.
Qualifying Income
Income must meet the applicable Cabinet and Ministerial Decision rules.
Income must meet the applicable Cabinet and Ministerial Decision rules.
No standard-rate election
The Free Zone Person must not elect into the ordinary Corporate Tax regime.
The Free Zone Person must not elect into the ordinary Corporate Tax regime.
Arm’s-length pricing
Related-party dealings must comply with transfer pricing requirements.
Related-party dealings must comply with transfer pricing requirements.
De minimis limit
Lower of AED 5 million or 5% of total Revenue, after prescribed exclusions.
Lower of AED 5 million or 5% of total Revenue, after prescribed exclusions.
Audited accounts
Audited Financial Statements must be prepared and retained.
Audited Financial Statements must be prepared and retained.
Documentation
Applicable transfer pricing and supporting records must be maintained.
Applicable transfer pricing and supporting records must be maintained.
Annual monitoring
All QFZP conditions must continue to be met for each Tax Period.
All QFZP conditions must continue to be met for each Tax Period.
QFZP transaction decision table
| Transaction or income | General QFZP position |
|---|---|
| Transaction with another Free Zone Person that is the Beneficial Recipient | May produce Qualifying Income unless it arises from an Excluded Activity. |
| Transaction with a Non-Free Zone Person | May produce Qualifying Income only where it arises from a recognised Qualifying Activity and is not an Excluded Activity. |
| Transaction with a natural person | Generally an Excluded Activity, subject to limited prescribed exceptions. |
| Commercial Property in a Free Zone involving a Free Zone Person | May produce Qualifying Income, subject to the Beneficial Recipient and other statutory conditions. |
| Other immovable-property income | Generally subject to the special immovable-property rules and 9% Corporate Tax. |
| Income attributable to a Domestic or Foreign Permanent Establishment | Generally subject to 9% and excluded from the de minimis calculation. |
| Income from Qualifying Intellectual Property | The nexus-supported portion may qualify for the 0% rate. |
| Trademarks, brands and other non-qualifying intellectual property | Generally not Qualifying Income. |
Failure has a multi-year consequence: if a Free Zone Person fails a QFZP condition, it generally ceases to be a QFZP from the beginning of that Tax Period and for the following four Tax Periods, subject to the applicable legislation and FTA procedures.
One integrated QFZP review
SGA World combines activity and income mapping, Beneficial Recipient analysis, de minimis testing, substance review, audited-Financial-Statement checks and transfer pricing support.
Where benchmarking is required, the team uses Orbis and TP Catalyst to support the arm’s-length analysis and documentation.
Corporate Tax Return and Payment Deadlines
A Corporate Tax return and any Corporate Tax payable are generally due within nine months from the end of the relevant Tax Period. Filing is normally still required where a registered Taxable Person has no tax payable or has made a loss, unless a specific exception applies.
| Financial year-end | Typical return and payment deadline |
|---|---|
| 31 December 2025 | 30 September 2026 |
| 31 March 2026 | 31 December 2026 |
| 30 June 2026 | 31 March 2027 |
Late filing or late settlement of Corporate Tax payable can result in a penalty of AED 500 for each month or part of a month during the first 12 months, increasing to AED 1,000 for each month or part of a month from the 13th month onward.
Our UAE Corporate Tax Services
02
Impact Assessment
Taxable-income modelling, exemption and relief review, and compliance planning.
03
Return Filing
Tax computation, schedules, management review, EmaraTax filing and payment support.
04
Small Business Relief
Revenue testing, eligibility assessment and election-impact analysis before filing.
05
QFZP Compliance
Income mapping, de minimis testing, substance review and annual monitoring.
06
Transfer Pricing
Disclosure support, Local File, Master File and benchmarking where required.
07
Tax Group Applications
95% ownership-condition review, structure analysis and FTA application support.
08
FTA Representation
Support for FTA queries, audits, penalty matters and reconsideration procedures.
Documents Needed for Corporate Tax Filing
Trade licence and incorporation documents
Corporate Tax registration and EmaraTax details
Ownership chart and Related Party information
Trial balance, general ledger and Financial Statements
Fixed-asset, financing and provision schedules
Related-party transaction schedule and TP records
Free Zone customer, activity and income classification
Previous returns, elections, Tax Losses and Tax Group details
How SGA World Handles Corporate Tax Compliance
Scope and registration
Confirm the Taxable Person, Financial Year, registration status and filing deadline.
Records and reconciliation
Collect and reconcile Financial Statements, trial balance, ledger and supporting schedules.
Tax position assessment
Assess adjustments, reliefs, Tax Losses, SBR, QFZP and related-party matters.
Return and computation
Prepare the Corporate Tax computation, return and schedules for management approval.
Filing and payment
Submit the approved return through EmaraTax and confirm the payment deadline.
Documentation and monitoring
Maintain filing support, transfer pricing documentation and future-period monitoring.
From accounting records to a defensible return
The engagement does not start with data entry into EmaraTax. It starts with reconciliation: connecting the Financial Statements, ledger, related-party population and tax adjustments to the final return.
This produces a filing position that management can understand, approve and support if the FTA asks questions later.
Related services and guidance
Frequently Asked Questions
What is the UAE Corporate Tax rate?
Under the standard regime, Taxable Income up to AED 375,000 is taxed at 0%, and the portion above AED 375,000 is taxed at 9%. Different rules apply to QFZPs and entities within the UAE Domestic Minimum Top-up Tax regime.
When did UAE Corporate Tax come into effect?
Corporate Tax generally applies to Tax Periods beginning on or after 1 June 2023. For a company with a calendar Financial Year, the first Tax Period was normally 1 January to 31 December 2024.
Do Free Zone companies pay Corporate Tax?
Free Zone Persons are within the Corporate Tax regime and generally must register. A Free Zone Person satisfying every QFZP condition may benefit from 0% on Qualifying Income. QFZP status arises from meeting the conditions; it is not obtained through a QFZP election in the return.
What is the late-registration penalty?
Failure to register within the applicable timeframe can result in an AED 10,000 penalty. It may be waived or refunded if the FTA’s waiver conditions are satisfied.
When is the Corporate Tax return due?
The return and payment are generally due nine months after the end of the Tax Period. For a 31 December 2025 year-end, the normal deadline is 30 September 2026.
What is Small Business Relief?
It allows an eligible UAE Resident Person meeting the AED 3 million Revenue test to elect to be treated as having no Taxable Income. It is available for eligible Tax Periods ending on or before 31 December 2029.
Does Corporate Tax apply to salary income?
No. Wages and employment income earned by a natural person are not treated as income from a Business or Business Activity for UAE Corporate Tax purposes.
What is a UAE Tax Group?
Eligible UAE Resident juridical persons may apply to form a Tax Group where the 95% ownership and other statutory conditions are met. The Tax Group files one Corporate Tax return.
Must a company file if it made a loss?
Generally, yes. A registered Taxable Person normally must file even where it has no tax payable or has made a Tax Loss, unless a specific exception applies.
Can SGA World represent a business before the FTA?
Yes. Through Saif Chartered Accountants, FTA Tax Agency Registration No. 30004113, the team supports registrations, filings, FTA queries, audits, penalty matters and reconsideration procedures within the applicable engagement scope.
Technical review: UAE Corporate Tax legislation and FTA guidance checked by SGA World’s audit and tax team. FTA Tax Agency Registration No. 30004113. Last updated: .