Corporate tax was first introduced in the UAE in 2023. The law dictated that businesses (both freezone and mainland) whose financial year began on or after June 1st, 2023 had to pay their dues to the Federal Tax Authority (FTA). This has significantly impacted the financial years of businesses operating in the UAE. Since the UAE follows the guidelines and standards issued by the Organization of Cooperation and Economic Development (OECD), it is paramount for businesses to ensure compliance at all costs. This makes timely corporate tax registration in UAE a necessity.
By registering for corporate tax, businesses become recognized by the tax authorities and gain access to various benefits and services provided by the government. Compliance with tax regulations also helps businesses maintain their reputation.
What is Corporate Tax in UAE ?
Understanding the Corporate Tax Framework
Corporate tax registration in UAE is a mandatory requirement outlined by the Federal Tax Authority (FTA) for every taxable individual. Corporate tax impacts people with direct shareholdings but also indirect shareholders through private pensions or investment funds. This makes knowing how to register for corporate tax in UAE essential information for every taxable person.
Profit Below AED 375,000?
You still need to register! The UAE Corporate Tax law mandates registration for ALL taxable persons, regardless of profit levels.
Mandatory for All UAE Companies
Whether you’re a start-up or an established enterprise, corporate tax registration is not optional.
UAE Branches Simplified
If your company has branches in the UAE, these are considered extensions, not separate entities, so separate registration or filing is not required.
Exempt Persons
Even exempt persons may receive requests from the Federal Tax Authority (FTA) to register.
Who Needs to Register for Corporate Tax?
1. Individuals (natural persons)
If you’re a sole proprietorship or freelance with a commercial license with an annual revenue over AED 1 Million. Even if you are conducting business under your personal name, you still have to register if you cross the revenue threshold.
3. QPBE (Qualifying Public Benefit Entities)
Organizations formed for public benefit also have to use the corporate tax registration service in UAE. This includes organizations for charity, religion, art, science, and culture.
Documents Required for Corporate Tax Registration
Emirates ID/Passport copy
Trade license
For other entities:
Trade license
Passport & Emirates ID copy of authorized signatory
Memorandum of Association (MoA) or Article of Association (AoA)
Steps for Corporate Tax Registration in the UAE
1. Create an EmaraTax Profile
You can register for corporate tax on the EmaraTax portal . The service is free and the application takes about 30 minutes to complete and also the portal is integrated with UAE Pass. You can do it yourself or hire a corporate tax registration service to take care of it.
2. Add a New Taxable Person & Review the Instructions
Before you start the application, you will need to add a new taxable person. Then, click on the ‘Register’ option in the ‘Corporate tax’ section. A list of instructions will be shown to you, outlining the documents you need to complete the process, along with a video tutorial on the left sidebar.
3. Enter Your Entity Details
The first section of the application is about your entity. Here, you’ll enter details like entity type, date of incorporation, and upload your certificate of incorporation.
4. Enter Identification Details
The next section will require you to enter details of your trade license, business activities, whether you operate multiple branches, and upload a copy of your trade license. You will also be asked to provide the company’s legal name in English and Arabic.
5. Fill Out Contact Details
This section involves entering your company address, email, and phone number.
6. Provide an Authorized Signatory
The last section of the registration application is providing the details of an authorized signatory. You can choose more than one person for this role.
7. Review and Submit Application
The last step of the application is to carefully review all your information. Once you submit the application, you’ll get an application reference number. Make sure to keep this number in your records as you’ll need it if you ever have to contact the FTA about your application. After that, you’re all set to meet the corporate tax filing deadlines.
Post Corporate Tax Registration Process
The FTA generally takes 20 business days to review your application. In some instances, they may contact you if they need more information. If you’re working with a corporate tax registration service, they’ll handle the entire process for you. If you’re doing it yourself, your account dashboard will show you the application status.
Alternatively, if a company employs a financial calendar year that begins on 1st January, 2023 and is completed on 31st December, 2023, the filing deadline will be on 30th September, 2025.
| Start of Financial Year | July 2023 - June 2024 | January 2024- December 2024 | April 2024 - March 2025 |
|---|---|---|---|
| End of Financial Year | 30th June 2024 | 31st December 2024 | 31st March 2025 |
| Filing and Payment Due Date | 31st March 2025 | 30th September 2025 | 31st December 2025 |
Income statements: Detailed records of revenues and expenses
Balance sheets: Assets, liabilities, and equity snapshots
General ledgers: Comprehensive tracking of financial transactions
Expense receipts: Supporting documents for all business-related expenditures
Bank statements: Record of financial transactions for reconciliation
Invoices and receipts: Proof of sales, purchases, and client/vendor interactions
Tax invoices: Documentation of taxable transactions
Employee payroll records: Compensation, benefits, and tax withholding details
Exemption certificates
Information of business activities
Proof of non-profit status
Agreements
Correspondence with tax authorities
Deregistration for Corporate Tax
If you are terminating business operations, you have to complete the deregistration process, which includes filing your final tax return and submitting a deregistration application in the EmaraTax portal.
How A&A Helps With Corporate Tax Registration in UAE
A&A Associate offer a corporate tax registration service, strategic tax planning, and audit support to keep your business in the government’s good books. Hiring a corporate tax consultant in UAE to help register your business, and prepare and file your returns can be an easy way to save money on your taxes and get expert help with your unique tax situation.
To get started with your corporate tax registration, contact us at +971 54 793 9972 or email us at enquiry@aaconsultancy.ae.
Disclaimer: This information is based on FTA regulations. Please consult our experts for more advice.
FAQ’s
How Long Does Corporate Tax Registration in UAE Take?
If you need further assistance, you can refer to the user manual provided by the Federal Tax Authority (FTA) or explore the EmaraTax FAQ page for more information.
Is There a Corporate Tax Registration Penalty?
The deadline depends on your earliest trade license issuance date. Using a corporate tax consultant in UAE is a smart way to avoid penalties. These are the deadlines for corporate tax registration in UAE for taxable persons who come into existence after 1st March, 2024:
Resident | Within three months from the incorporation date |
Resident (but registered under a foreign jurisdiction) | Within three months of the end of financial year |
Non-resident (with permanent establishment) | 6 months from the date of existence of the PE |
Non-resident (nexus) | 3 months from the date of establishment of the nexus |
The FTA also recently issued a notice that “natural persons” conducting business in the country with gross revenue over AED 1 Million in 2024 have until 31st March, 2025 to register for corporate tax.
What is the Corporate Tax Registration Service in UAE?
What Are the Corporate Tax Filing Deadlines?
The corporate tax filing deadline is nine months from the end of a business’ financial year. Companies are expected to file their returns and pay their taxes by this time. This makes knowing how to register for corporate tax in UAE imperative, as you cannot file your taxes without registering.
