UAE Corporate Tax Registration is a mandatory procedure for every taxable individual, irrespective of whether they are a natural person or a judicial one, conducting business operations and activities under an official trade license.
Following the Federal Tax Authority’s Corporate Tax Law in the UAE, taxable individuals are mandated to officially register for UAE Corporate Tax using the FTA’s EmaraTax platform to secure a Corporate Tax Registration Number in the UAE.
Our detailed step-wise guide clearly outlines the entire process, including the necessary documents, deadlines, the tax rate applicable, and most importantly, how Xpert Tax can make the entire registration process seamless for you. Let us dive right into it:
UAE Corporate Tax: A Detailed Overview
UAE Corporate Tax refers to the tax imposed on the net income/profits of businesses that earn more than AED 375,000* annually, with the general rate of tax being 9%. Specific industries might be subjected to a different tax rate.
In 2023, the United Arab Emirates introduced this form of tax with the purpose of aligning with the set international standards and enhancing economic growth. Therefore, any business who conducts business in the UAE must understand what UAE Corporate Tax is and how to navigate it.
Here is a look at the UAE Corporate Tax Rate (2025 Update):
- The standard UAE Corporate Tax rate is 9% on businesses whose profits exceed AED 375,000*.
- Businesses that earn up to the AED 375,000* mark yearly are not subjected to UAE Corporate Tax to support small-scale enterprises, startups, etc.
- Businesses operating in the UAE’s designated Free Zones might continue to reap the benefits from having 0% imposed tax if they align with specific regulatory conditions and if they are not engaged in any business activities with Mainland.
- The UAE Corporate Tax aligns with the global standards, most importantly the OECD’s BEPS framework.
Who Should Register For UAE Corporate Tax?
Every taxable individual is mandated to officially register for Corporate Tax in the UAE and secure a Corporate TRN (Tax Registration Number) according to the Corporate Tax law of the UAE. Irrespective of whether their income is under the threshold, every individual is required to register for UAE Corporate Tax. Here is a detailed overview of individuals/companies that must register:
- UAE Registered Companies
Any business that conducts business and is incorporated in the United Arab Emirates, whether they are located in the Mainland or Free Zone, has to officially register for UAE Corporate Tax. Depending on the business’ nature, there may be certain opportunities for deductions/exemptions.
- Threshold of Revenue
Any entity whose revenue falls in the prescribed revenue threshold is required to register for UAE Corporate Tax.
- Enterprises in the Free Zone
Entities in the Free Zones having tax incentives must also be registered for UAE Corporate Tax. Moreover, they must also declare their income to stay compliant.
- Foreign Businesses Who Have a Fixed UAE Presence
Foreign entities with a fixed presence in the UAE, i.e., with multiple branches, long-term contracts, etc., must also register for UAE Corporate Tax.
- Exempted Entities
Entities like government-run agencies, qualifying PBOs (Public Benefit Organizations) might be required to officially register for UAE Corporate Tax in order to evidence their status of exemption.
- Individual Freelancers
Certain freelancers or self-employed people whose business earnings go over the set threshold might also be required to register.
Key Points:
- Register within the set timeline to avoid facing penalties.
- Ensure following every one of the FTA’s guidelines.
- Frequently check the Federal Tax Authority’s website to remain up-to-date with the latest news.
- If you own a Free Zone Business, ensure registration even if your tax is reduced/exempted.
Entities Exempt from UAE Corporate Tax
In the United Arab Emirates, particular individuals and business entities are exempt from UAE Corporate Tax as per specific conditions. However, it is important to remember that even if a business entity is exempt, they may still be required to officially register with the FTA in order to be compliant with particular administrative needs. Here is a detailed look at the entities that are exempt from UAE Corporate Tax:
- Government Bodies: Departments, authorities, or any other public body that operates under the federal or Emirate government are totally exempt from UAE Corporate tax.
- Government-Controlled Bodies: Companies that are completely owned as well as controlled by the UAE government are exempt from UAE Corporate Tax, given that they meet certain criteria.
- Extractive Business Entities: Any business that is involved in natural resources’ extraction, like gas, oil, etc., are completely exempt from UAE Corporate Tax.
- Non-Extractive Business Entities: Businesses that are involved in non-extractive operations synonymous with natural resources might also qualify for UAE Corporate Tax exemption.
- Public & Private Pension/Social Security Funds: Any fund that is set up to offer retirement/social security perks are free of UAE Corporate Tax subjugation.
- Qualifying Investment Funds: Certain investment funds that align with specific regulatory criteria may reap the benefits of being exempt from Corporate Tax.
- Fully-Owned & Controlled UAE Subsidiaries of Specific Exempt Entities: Subsidiaries owned & controlled by UAE Corporate Tax-exempt entities might also be free from CT subjugation.
Required Documents for UAE Corporate Tax Registration
The process of UAE Corporate Tax Registration demands certain documents. It is important to note that the requirement of documents depends on the nature as well as structure of the company. Let us take a look at the documents that one needs to present for UAE Corporate Tax Registration in most cases:
- Copy of the Trade License
- Valid, Non-Expired Passport Copies of Owners or Partners (License Holders)
- Valid, Non-Expired Emirates ID of Owners or Partners (License Holders)
- PoA (Power of Attorney) or MoA (Memorandum of Association)
- The Concerned Individual’s Contact Details, i.e., Phone Number & E-Mail ID
- Contact Details of the Company, i.e., Address or Post Office Details
- The Annual Fiscal Audit Report of the Business
The Complete Process of UAE Corporate Tax Registration
Listed below are all the steps involved in the process of UAE Corporate Tax Registration:
Step 1: Creating an Account on the EmaraTax Platform
To start the process of UAE Corporate Tax Registration, businesses must make a new account on the FTA’s EmaraTax portal. They must put in precise company as well as tax-related details for proper compliance.
Step 2: Filling Up the Registration Form
Once the account is activated, you should complete filling up the registration form by inputting all business-related details, type, tax benefits and any connections to foreign jurisdictions for precise processing.
Step 3: Document Submission
Post filling up the registration form, you need to submit every required document. Refer to the list of documents mentioned previously to ensure you do not miss submitting any vital document.
Step 4: Completing the Registration Process
After submitting the documents, finalize the registration process. Properly assess the information you inputted and then submit it.
What Happens Post UAE Corporate Tax Registration?
Once you have submitted your application, the Federal Tax Authority reviews it thoroughly. Then:
- You will be notified via an e-mail if the Federal Tax Authority needs any extra information related to your application.
- If your UAE Corporate Tax Registration application gets approved, the Federal Tax Authority will inform you.
- The status of your application will get updated on the Dashboard. Therefore, you are advised to frequently check your Corporate Tax Registration Dashboard.
Deadlines for UAE Corporate Tax Registration
Here is an overview of the deadlines for UAE Corporate Tax Registration for different types of entities:
UAE Resident Legal Individuals (Companies & Judicial Bodies)
- Entities that were Licensed before the 1st of June, 2024: Required to register for UAE Corporate Tax before the 31st of May, 2024
- Entities that were Licensed before the 1st of June, 2023 & 31st of December, 2023: Must register within a period of 6 months from their first fiscal year’s end.
- Entities that were Licensed on/after the 1st of January: Required to register within a period of 3 months from their fiscal year’s end.
Non-Resident Legal Individuals
- Having a UAE PE (Permanent Establishment) or Nexus: Mandated to register within a period of three months from the exact date they satisfy the criteria of possessing a Nexus or Permanent Establishment in the UAE.
Natural Individuals (Persons Conducting Business Activities)
- Residents: People conducting business or any related activities in the United Arab Emirates and going past the AED 1 million* turnover mark are required to register for UAE Corporate Tax by the 31st of March of the year after the year wherein the set threshold was exceeded.
- Non-Residing Individuals: Non-resident persons satisfying UAE taxation criteria must register for Corporate Tax within a period of three months from the exact date they become tax-imposed.
Exempt Entities
- Establishments Exempt from UAE Corporate Tax: Specific exempt entities still need to register for UAE Corporate Tax. The Federal Tax Authority’s Decision No.3 specifies the deadlines.
UAE Corporate Tax Registration: Non-Compliance Penalties
Let us take a look at the penalties charged for non-compliance with the UAE Corporate Tax Registration:
| Violation | Penalty (in AED*) |
| Not maintaining required records | Either 10,000 for every violation or 20,000 for multiple repeated violations within a period of two years. |
| Not submitting data related to tax, records, & vital documents in the Arabic language to the Authorities when requested. | 5,000 |
| Not submitting an application for deregistration within the set timeline as per the Corporate Tax Law & its implementing decisions | Late Submission: 1000, going up by 1,000 on a monthly basis, up to a total of 10,000. |
| Not informing the concerned Authority of any incident that requires a Tax record amendment. | 1,000 |
| The legal representative does not provide timely notice of their appointment. | 1,000 |
| Delayed Tax Return filing from the legal representative’s end. | 500/month or part thereof, continued for the first year or 12 months. or1,000/month, or part thereof, starting from the 13th of that month, beginning the day post the submission deadline of the Tax Return. |
| Delayed Tax Return Submission | 500/month or part thereof, continued for the first year or 12 months. or1,000/month, or part thereof, starting from the 13th month onwards, beginning the day post the Tax Return submission deadline. |
| Unsettled Payable Tax | 14% per year, applied on a monthly basis right from the day post the due payment date.* Due Date of Payment (Voluntary Disclosure): 20 Days (Business) from the Date of Submission. * For Assessment of Tax: 20 Days (Business) from receipt. |
| Incorrect Submission of Tax Returns | 500, unless the individual rectifies the Tax Return prior to the UAE Corporate Tax Law’s submission deadline. |
| Turning in a Voluntary Disclosure for mistakes in Tax Return, Assessment, or Refund Application as per Tax Procedures Law’s Article 10 | 1%/month or part thereof, as per the Tax Difference right from the Tax Return, Assessment, or Refund Application’s due date notification until the submission date of Voluntary Disclosure. |
| Not turning in a Voluntary Disclosure for mistakes in Tax Return, Assessment, or Refund Application as per Tax Procedures Law’s Article 10 before getting notified of an incoming Tax Audit | 15% fixed fine on the total Tax Difference1%/month of part thereof on the total Tax Difference |
| Not facilitating the individual (Tax Auditor) performing a Tax Audit | 20,000 |
| Delayed Declaration’s submission to the Authority. | 500 for the first year or 12 months.1,000/month from the 13th month |
How Xpert Tax Can Help With UAE Corporate Tax Registration
Navigating the UAE’s Corporate Tax regime is undoubtedly a complex process, but with the help of Xpert Tax’s experienced team of professionals, the process becomes hassle-free. We offer expert, end-to-end guidance, ensuring your UAE business achieves total compliance, while you focus completely on growing your establishment.
Our comprehensive suite of streamlined services when it comes to UAE Corporate Tax Registration includes:
- Eligibility Assessment: We smartly analyze your business and its structure to authenticate your precise tax registration obligations as per the UAE’s Corporate Tax laws.
- Document Management: Xpert Tax aids you in the preparation and organization of all the required documents for a seamless submission to the FTA.
- Precise Filing: Our team of qualified tax advisors and professionals handle the entire Corporate Tax Registration process on the EmaraTax portal, ensuring zero errors and avoiding any delay.
- Liaison with the Federal Tax Authority: We manage all forms of communications with the FTA on your behalf, guaranteeing a seamless process until your office TRN is issued.
All set for a convenient, hassle-free UAE Corporate Tax Registration? Reach out to Xpert Tax today to ensure your business’ complete compliance with the Corporate Tax laws of the United Arab Emirates!
Reach Out to Us:
Email Us: aus@xperttaxuae.com
Call Us: +971 50 3959730
Frequently Asked Questions
Must I register my business on the EmaraTax portal for Corporate Tax in UAE?
All businesses operating in the United Arab Emirates, irrespective of how big or small they are, are mandated to register for UAE Corporate Tax and obtain a TRN (Tax Registration Number).
How to calculate UAE Corporate Tax?
First, you need to find the taxable income, which can be deduced by subtracting AGI (Adjusted Gross Income) from AD (All Applicable Deductions). Then, once you have obtained the taxable income, you need to multiply the number with the applicable UAE Corporate Tax rate. To put it simply, here is the equation: Corporate Tax Liability = (AGI–AD)*CTR
Who is permitted to file an application for Corporate Tax Registration amendment?
As a Corporate Tax Registrant, you have the option to submit it yourself. However, it is advised to let this be handled by a renowned, registered tax agent from a reputed tax advisory firm.
How much time does the registration process take after the application is submitted?
In most cases, registration generally takes around 5-10 working days after the application is submitted. However, the duration may vary depending on the FTA’s processing time.
