UAE Corporate Tax Registration Deadlines and the AED 10,000 Late Penalty
Who must register for UAE corporate tax, the deadline that applies to you, what the late registration penalty is and what happens after you register.
By Countify's ACCA/FCCA chartered certified accountants
Who must register
Corporate tax registration is not linked to profit. The following must register with the FTA, even if no tax will be payable.
- Every company and other juridical person incorporated in the UAE, including free zone companies and holding companies.
- Foreign companies that are effectively managed and controlled in the UAE, or that have a permanent establishment or nexus in the UAE.
- Individuals (including sole establishments and freelancers) whose UAE business turnover exceeds AED 1 million in a calendar year.
Which deadline applies to you
Companies incorporated on or after 1 March 2024 must register within three months of their incorporation date. Companies that existed before 1 March 2024 had deadlines between May and December 2024 based on their licence issue month; if you missed yours, register immediately.
Individuals must register by 31 March of the year following the calendar year in which their business turnover first exceeded AED 1 million.
The late registration penalty
Missing your registration deadline carries an AED 10,000 administrative penalty. The FTA has offered a waiver of this penalty for businesses that file their first corporate tax return, or annual declaration, within seven months of the end of their first tax period.
Waiver initiatives are time-limited and have specific conditions, so check the current FTA guidance before relying on one. The simplest way to avoid the question entirely is to register on time.
What happens after registration
Your tax period normally follows your financial year. A corporate tax return must be filed, and any tax paid, within nine months of the end of each tax period. A company with a 31 December year end therefore files by 30 September of the following year.
Corporate tax is charged at 0% on taxable income up to AED 375,000 and 9% above that. Businesses with revenue of AED 3 million or less may elect Small Business Relief, and qualifying free zone persons may pay 0% on qualifying income.
A simple checklist
- Confirm your incorporation date and the registration deadline that follows from it.
- Register on EmaraTax and download your corporate tax TRN certificate.
- Agree your financial year end and diarise the nine-month filing deadline.
- Keep accounting records that support your return for at least seven years.
How Countify can help
We register companies, free zone entities and individuals for corporate tax on EmaraTax, check whether a penalty waiver may apply and prepare the returns that follow.
This guide is general information and reflects the rules at the time of writing. UAE tax rules change, so check the latest FTA guidance or speak to us before acting.
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