New UAE companies often ask the same thing in the first month: do we owe corporate tax, and what must we do even if the answer is no? This guide covers the rate, registration, the return deadline and how free zone companies are treated.
Rules and deadlines depend on your licence date and structure, so use this as a planning guide and confirm your position with the Federal Tax Authority (FTA). For help, see our corporate tax registration and filing service.
Written by the Maven& editorial team. Rules and fees change, so confirm current requirements with the relevant authority before you act.
UAE corporate tax is 0% on taxable income up to AED 375,000 and 9% on the portion above that, for financial years starting on or after 1 June 2023. Every taxable company must register with the FTA, even if it expects to pay no tax.
UAE corporate tax at a glance
| Item | What applies |
|---|---|
| Rate | 0% up to AED 375,000 of taxable income, then 9% |
| Applies from | Financial years starting on or after 1 June 2023 |
| Who registers | Taxable persons, including most UAE companies and free zone companies |
| How to register | Electronically through the FTA EmaraTax portal, which issues a Tax Registration Number |
| Return | Filed through EmaraTax within nine months of the end of the tax period |
| Free zone companies | A Qualifying Free Zone Person can access 0% on qualifying income only if all conditions are met |
Who must register for corporate tax?
Taxable persons must register, including most UAE companies and free zone companies. Registration is made through the FTA EmaraTax portal and results in a Tax Registration Number.
When are corporate tax returns due?
The corporate tax return is filed electronically through EmaraTax within nine months of the end of the tax period. Keep accounting records throughout the year so that the return can be prepared on time.
How are free zone companies taxed?
A Qualifying Free Zone Person can access a 0% rate on qualifying income, but only if all conditions are met, including adequate substance and staying within limits on non-qualifying income. Other income is taxed at the standard rates. Qualifying Free Zone Persons must also prepare audited financial statements.
What are the penalties?
The FTA applies fixed administrative penalties for late registration, reported as AED 10,000. Deadlines depend on your licence date, so check the FTA registration calendar for your company.
Practical steps for a new company
- Confirm whether you are a taxable person.
- Register on EmaraTax and keep your Tax Registration Number safe.
- Set up bookkeeping from the first month.
- Diary the return deadline.
Maven& can also handle your accounting. Please verify current rules with the FTA before you act.
Need help with corporate tax registration or your return?
Tell us your licence date, structure and activity. We confirm your tax position, register you on EmaraTax and prepare your accounts and return.
Frequently asked questions
What is the UAE corporate tax rate?
The rate is 0% on taxable income up to AED 375,000 and 9% on the portion above that, for financial years starting on or after 1 June 2023.
Do I have to register if I expect to pay no tax?
Yes. Every taxable company must register with the FTA, even if it expects to pay no tax.
When is the corporate tax return due?
The return is filed electronically through EmaraTax within nine months of the end of the tax period.
Do free zone companies pay corporate tax?
Free zone companies must register. A Qualifying Free Zone Person can access 0% on qualifying income only if all conditions are met, including adequate substance. Other income is taxed at the standard rates.
What is the penalty for late corporate tax registration?
The FTA applies fixed administrative penalties for late registration, reported as AED 10,000. Deadlines depend on your licence date, so check the FTA calendar for your company.
Do Qualifying Free Zone Persons need audited accounts?
Yes. Qualifying Free Zone Persons must prepare audited financial statements.
Related guides
Sources
- Federal Tax Authority corporate tax registration, returns and penalties.
- UAE Government portal corporate tax overview.
