The corporate tax was introduced in June 2023 under Federal Decree-Law No. 47 of 2022 in the UAE. It has made it mandatory for all types of businesses in the UAE to register for UAE corporate tax. However, certain exemptions and relief options for corporate tax are discussed in the article below.
The recent changes to the UAE corporate tax law, effective from 2024, have introduced more strict requirements for businesses. The Federal Tax Authority (FTA) has implemented a penalty of AED 10,000 for companies that fail to register for corporate tax from March 1, 2024,
Corporate Tax Registration In The UAE:
The UAE, a business-friendly and tax-free destination, has introduced some changes in its taxation system by promulgating Federal Decree-Law No. 47 of 2022, managed by the Federal Tax Authority (FTA). The introduction of corporate tax has made the UAE eligible to meet the standards set by the Organization for Economic Cooperation and Development (OECD), ensuring compliance with international practices.
This article explains everything about corporate tax in the UAE, including who needs to register for corporate tax, the documents required for registration, the step-by-step registration process, deadlines and compliance rules, Corporate tax rates and exemptions, post-registration obligations, and small business relief options.
At Now Consultant, we provide expert corporate tax registration services to help businesses register for corporate tax and meet all regulatory requirements, avoiding any risk of penalties and staying informed with the latest updates.
What Is UAE Corporate Tax?
The corporate tax is a direct tax on the net profits of businesses operating in the UAE. This reflects the economic stability of the UAE, which increases government revenue and supports a competitive business environment.
There is no zero corporate tax for profits up to AED 375,000 and 9% for profits above this amount. However, there are special rates for certain large multinational enterprises under the OECD’s BEPS framework.
Who Needs To Register For UAE Corporate Tax?
Under the UAE corporate tax law, all businesses must register, even if their annual profits are below AED 375,000. The following needs to register for UAE corporate tax:
1. Legal Entities
All legal entities in the UAE, whether they are operating in mainland or Free Zones or they are foreign entities, have mandatory registration for corporate tax.
Mainland Companies
Mainland companies conducting business within the premises of the UAE are required to register for corporate tax. The corporate tax applies to businesses across various industries, including retail, manufacturing, and professional services.
Free Zone Businesses
All the businesses operating in Free Zones must register for corporate tax, although they may benefit from preferential tax treatments under specific conditions. Free Zone businesses are advised to maintain compliance with the regulations to ensure continued eligibility for tax incentives.
Foreign Entities
Foreign entities earning income from the UAE must also register if they have a permanent establishment or derive substantial revenue.
2. Natural Persons (Individuals)
Individuals running business activities under a commercial license must register for corporate tax if their annual revenue exceeds AED 1 million.
Freelancers and Sole Proprietors:
The freelancers, those operating businesses under their name, must register for corporate tax if their revenue crosses the threshold. Even small businesses (sole proprietors) earning less than AED 3 million, which qualify for small business relief, need to register to benefit from any tax relief.
3. Qualifying Public Benefit Organizations
Organizations that are working for public benefit, such as charities listed under Cabinet Decision No. 37 of 2023, must also register for corporate tax in the UAE.
Documents Required For Corporate Tax Registration:
businesses must prepare the following documents for the registration of corporate tax in the UAE:
- Trade license copy
- Emirates ID or passport copy of the business owner(s)
- Memorandum of Association (MOA) or Articles of Association (AOA)
- Financial statements
- Details of business activities
- Business financial audit report (annual)
- Contact details of the company and stakeholders
- Proof of revenue (for individuals exceeding AED 1 million annual income)
Specific industries or business types may require additional documents, such as regulatory approvals or sector-specific permits.
How To Register For UAE Corporate Tax:
You need to use the EmaraTax portal provided by the Federal Tax Authority (FTA) for corporate tax registration. EmaraTax is a simple online platform that allows you to register for taxes, file returns, make payments, and more.

The following are the steps for easy and simple corporate tax registration in the UAE.
1. Login to EmaraTax:
First of all, open the EmaraTax portal on your device and log in using your account details or the UAE Pass. If you do not have an account, you can create it by clicking the “Sign Up” option.

2 & 3: Add Taxable Person:
After successful login, you should check if any taxable person is linked to your account. If none, click to create one by entering the required details. After creation, you can view the taxable person on your list.
4. Access The Corporate Tax Dashboard:
Once the taxable person is linked, click “View” (option on the taxable person box) to open the corporate Tax Dashboard.

5. Start Registration:
On the dashboard, click the “Register” option. There are some instructions and guidelines for the registration process. Click “Start” to begin.

6. Complete The Application:
The registration application is divided into five sections. You need to complete each section before moving to the next. When you fill in one field, it will be marked green, and you can proceed to the next.

7. Choose Entity Type:
Under the “Entity Details” section, select your business type. You should provide specific details depending on the entity type. Some entity types include UAE Public Joint Stock Companies, Foreign Companies, Charity, and more.

8. Provide Identification Details:
After completing the entity section, click “Next Step” to enter your trade license details in the “Identification Details” section.

- Add Business Activities: Click “Business Activity” and enter all the business activities listed on your trade license. Click “Add” after entering the details, and an activity code will be displayed.
- Add Owners: Click “Add Owners” and enter information about the owners associated with the trade license, whether they are individuals or legal entities.
- Branch Information: If your business has branches in the UAE, click “Yes,” and provide trade license details, business activities, and owners for each branch.
9. Enter Contact Details:
In the next section, add the registered address of your business.
10. Authorized Signatory:
In the “Authorized Signatory” section, click “Add Authorized Signatory” to enter the details of the person authorized to sign on behalf of the business. If required, a “Power of Attorney” or “Memorandum of Association” may be needed.

11. Review Information:
After completing the necessary details, click “Next Step” to review all the information you entered. Check the box to confirm the accuracy.
Finally, click “Submit” to complete the registration. Once submitted, a corporate tax registration reference number will be generated.
After submitting your corporate tax registration application, the FTA will either approve, reject, or ask for more information. You will receive an email if further details are needed, and your application status will be updated on your dashboard once it is accepted.
Corporate Tax Registration Deadlines:
As per FTA Decision No. 3 of 2024, issued on February 22, 2024, all taxable persons and entities must register for corporate tax and obtain a Tax Registration Number within the timelines outlined in the decision, as mandated by Article 51 of the UAE CT Law.
Businesses in the UAE must register for corporate tax within the timelines set by the FTA to avoid penalties. These deadlines are linked to the start of the financial year for each entity. The UAE corporate tax regime gives businesses up to 21 months from the beginning of their financial year to file returns and make tax payments.
Penalties for Late Registration:
As of March 1, 2024, businesses failing to register for corporate tax on time may face penalties under Cabinet Decision No. 10 of 2024. This decision, issued by the Ministry of Finance in February 2024, updates the penalties outlined in Cabinet Decision No. 75 of 2023 related to Federal Decree-Law No. 47 of 2022.
Companies are advised to comply with registration requirements to avoid fines. Businesses that do not comply with the corporate tax registration in the UAE will face an AED 10,000 penalty starting on March 1, 2024.
UAE Corporate Tax Registration Rules:
Taxable Income
Corporate tax applies to taxable income exceeding AED 375,000 annually. This threshold is set so that smaller businesses remain unaffected.
Taxable Period
The taxable period usually aligns with the financial year of the business, spanning 12 months.
Filing Obligations
Registered businesses must file annual tax returns and maintain detailed financial records to ensure compliance.
Exemptions from UAE Corporate Tax
Certain businesses and types of income are exempted from corporate tax to support specific sectors:
1. Natural Resource Companies
Businesses involved in natural resource extraction are exempt from federal corporate tax but remain subject to Emirate-level taxation.
2. Investment Income for Individuals
Personal investment income is not taxed, including:
- Dividends and capital gains from shares or securities.
- Interest from savings or deposits.
- Real estate income from property owned personally.
3. Intra-Group Transactions
Qualifying transactions between group companies and business reorganizations are exempt from corporate tax, provided specific conditions are met. This allows businesses to restructure without additional tax costs.
By understanding these requirements and exemptions, businesses can ensure they remain compliant while taking advantage of applicable reliefs.
Other Exempt Entities
- Government-owned entities
- Certain public benefit organizations
Exemption Criteria
To qualify for exemptions, businesses must:
- Operate exclusively in the specified, exempt sectors
- Comply with all regulatory requirements
Post-Registration Compliance For Corporate Tax:
Corporate Tax De-Registration
If your business no longer needs to be registered for corporate tax, you must cancel the registration with the Federal Tax Authority. Before the de-registration process, you need to make sure all dues are paid and submit the necessary documents on time to avoid any fines.
Corporate Tax Return Filing:
Businesses must file a tax return every year, showing details about their income, expenses, and tax payments. It is important to keep proper accounting records to support the tax return and submit it before the deadline to avoid penalties.
Corporate Tax Rates:
Businesses in the UAE pay a standard corporate tax rate of 9% if their income is above AED 375,000. However, those earning less than this amount do not pay any tax, supporting small businesses and start-ups to grow.
Small Business Relief For Corporate Tax
Small businesses with revenue under AED 3 million annually are eligible for relief measures. In this relief, small businesses are free from corporate tax obligations. However, businesses must be registered with the FTA to receive this relief.
Why Should You Register Corporate Tax With Us?
At Now Consultant, our experts provide complete support to help businesses with corporate tax registration in the UAE. Our experts assist you at every step, from gathering the required documentation to completing the EmaraTax registration process with accuracy, ensuring compliance with all regulatory requirements.
By proper registration of your business and staying up-to-date with the latest tax regulations, businesses can benefit from the UAE’s favorable business environment. With our expertise, you can mitigate the risk of penalties, such as the AED 10,000 fine for late registration, and avoid errors that could lead to costly fines or delays.
Our expert team provides solutions to meet your business needs, including applying for exemptions, small business relief, and post-registration obligations like filing tax returns.
FAQs:
What Happens If I Don’t Register For Corporate Tax On Time?
If you do not register for corporate tax by the deadline, it can lead to a penalty of at least AED 10,000 as per the Cabinet Decision No. 10 of 2024. The penalty amount increases if you do not register your business after the deadline.
Is There a Minimum Revenue Threshold For Corporate Tax Registration?
Yes, all businesses must register for corporate tax. However, if their taxable income does not exceed AED 375,000 annually, the corporate tax is 0%.
Can Foreign-owned Companies Benefit From UAE Corporate Tax Exemptions?
Foreign companies operating in UAE Free Zones may qualify for corporate tax exemptions if they meet specific criteria. These criteria often include not conducting business with the mainland and adhering to the Free Zone’s rules.
Do Freelancers Need To Register For Corporate Tax In The UAE?
Freelancers earning over AED 1 million annually are required to register for corporate tax. This rule ensures that high-earning individuals contribute to the tax system, while those earning below this amount are exempt.
What Is The Role Of The Federal Tax Authority (FTA) In Corporate Tax?
The Federal Tax Authority is responsible for implementing and managing corporate tax in the UAE. Its duties include overseeing tax registration, ensuring compliance, collecting taxes, and enforcing penalties for violations.
How Can I Avoid Corporate Tax Penalties?
Businesses should register for corporate tax on time, file accurate tax returns, and comply with all regulations to avoid penalties. You must keep proper financial records and stay updated according to the FTA’s guidelines, which also helps avoid issues.
What Is The Taxable Period For Corporate Tax In The UAE?
The taxable period for corporate tax in the UAE is generally the financial year, which usually starts on January 1 and ends on December 31. However, businesses can choose a different financial year if they prefer.
Do Non-resident Companies Need To Register For Corporate Tax In The UAE?
Yes, non-resident companies must register for corporate tax if they have a permanent establishment in the UAE or earn significant income from UAE sources.