Complete Guide to Corporate Tax Registration in UAE

Learning corporate tax in UAE helps you to get your company ready for expansion and so prevent unanticipated penalties, not only about compliance. Navigating corporate tax registration UAE feels like deciphering a secret manual whether you're a start-up or an already established company. Fret not. We are here to make it easy—step-by-step, in simple language. From how much you will pay to how and where to register, let's go through everything you need to know about the new UAE corporate tax system.

What Is Corporate Tax in UAE?

A direct tax on business earnings is corporate tax. To match international tax norms and increase openness, the UAE brought in federal corporate tax. It officially became effective. Companies whose income exceeds the limit must register, submit tax returns every year to the Federal Tax Authority (FTA), and pay taxes.

Why Is Corporate Tax Introduced in UAE?

Let’s be real. The UAE was once known as a "tax-free haven", but with global economies tightening regulations, it’s no surprise the Emirates joined in.

Main Reasons behind Corporate Tax Implementation:

• Strengthen the UAE’s global reputation
• Diversify national revenue sources
• Comply with international tax frameworks (like OECD)
• Support economic transparency and competitiveness

Who Needs to Register for Corporate Tax in UAE?

Here’s the simple rule: If your taxable profits exceed AED 375,000, you need to register.

Entities That Must Register:

• LLCs (Limited Liability Companies)
• Free Zone Companies (meeting certain criteria)
• Foreign companies operating in UAE
• Partnerships
• Branches of foreign companies
• Freelancers earning above the threshold

Exemptions from Corporate Tax

Not every business falls under the corporate tax regime.

Here’s Who’s Exempt:

• Government entities and qualifying investment funds
• Individuals earning personal income (like salaries, dividends)
• Businesses engaged in extractive industries (with separate regulations)
• Charities and public benefit organizations

But even exempt entities must register in many cases for proper documentation.

When Should You Register for Corporate Tax?

Deadlines depend on your financial year. Here's a quick shot
• you must register and file your first return by if your fiscal year begins on.
• New businesses: You must register three months after incorporation.

Delays could mean hefty penalties, so don’t push it off.

Step-by-Step Corporate Tax Registration UAE

You don’t need a tax consultant just to get registered. You can DIY it online.

1. Set up Your Emirate Account

• Visit https://eservices.tax.gov.ae
• Log in or sign up with your UAE Pass

2. Gather Required Documents

Have these ready:

• Trade license
• Emirates ID & passport copies of owners
• Memorandum of Association (MoA)
• Company contact and banking details
• Audited financial statements (if available)

3. Fill in the Corporate Tax Application

Choose the right business activity, free zone status, and income range. Don’t rush—accuracy matters here.

4. Submit and Wait

It takes 5 to 20 business days to receive confirmation from the FTA.

Corporate Tax for Free Zone Companies

Here’s where it gets interesting. Many assume Free Zone companies are tax-free—but not always.

Free Zone Conditions for 0% Tax:

• Maintain adequate substance in the zone
• Don’t conduct business with the mainland
• Comply with transfer pricing rules

Fail to meet these, and you’ll pay the standard 9% corporate tax.

Penalties for Non-Compliance

The FTA is serious about tax registration. Here’s what happens if you ignore it:

• AED 10,000 for failure to register on time
• AED 500 to AED 20,000 for incorrect or incomplete tax returns
• Higher penalties for intentional avoidance or tax evasion

How to File Corporate Tax Returns

After registration, your next job is filing annual returns.

Filing Process:

• Log in to EmaraTax
• Upload your audited financials
• Fill in tax calculation form
• Submit and pay any dues