What Tax Registrations Does a Business in the UAE Need and How Does Each Work?

The Three Tax Registrations a UAE Business May Need

The UAE operates three distinct tax regimes that apply to businesses, each with its own registration obligation, threshold, and compliance framework. A UAE business may need to register for one, two, or all three depending on its activities, revenue, and the goods or services it deals in. Understanding which registrations apply, when they become mandatory, and what the registration process involves is the starting point for managing UAE tax compliance correctly.

The three tax registrations are Corporate Tax registration, VAT registration, and Excise Tax registration. Each is administered by the Federal Tax Authority (FTA) through the EmaraTax portal. The obligations are separate: registering for one does not fulfil the obligation to register for another, and each carries its own deadlines, penalties for non-compliance, and ongoing filing requirements.

Corporate Tax Registration: Who Must Register and When

Corporate Tax was introduced in the UAE under Federal Decree-Law No. 47 of 2022, effective for financial years beginning on or after 1 June 2023. Every juridical person incorporated or registered in the UAE must register for Corporate Tax. There is no revenue threshold for Corporate Tax registration , a newly incorporated company with zero revenue must register within the prescribed deadline.

The registration deadline is within 3 months of the date of incorporation for companies incorporated after the initial Corporate Tax registration window. The FTA may issue a Corporate Tax Registration Number (TRN) upon successful registration, which must be quoted on all tax-related correspondence and returns.

Natural persons (individuals) conducting business under a commercial licence in the UAE must also register for Corporate Tax where their annual business revenue from UAE and foreign sources exceeds AED 1 million in a calendar year.

The following categories of person are subject to Corporate Tax and must register:

• UAE-incorporated and UAE-registered companies (mainland and free zone)
• Foreign companies that are effectively managed and controlled from the UAE
• Foreign companies with a permanent establishment in the UAE
• Individuals conducting business under a commercial licence whose annual business revenue exceeds AED 1 million

Certain persons are exempt from Corporate Tax entirely, including UAE government entities, government-controlled entities meeting specific criteria, qualifying public benefit organisations listed by Cabinet Decision, and qualifying investment funds. Exempt persons may still be required to register if directed by the FTA.

Corporate Tax Rates

The 15% Domestic Minimum Top-up Tax (DMTT) applies to large multinational enterprise groups with consolidated global revenue of EUR 750 million or more in at least two of the four preceding fiscal years, under Federal Decree-Law No. 60 of 2023, effective for financial years beginning on or after 1 January 2025.

Corporate Tax Compliance Obligations After Registration

Registration is only the starting point. Once registered, a taxable person must fulfil the following ongoing obligations under the Corporate Tax framework:

• Prepare IFRS financial statements: taxable income is derived from accounting net profit prepared in accordance with IFRS. Financial statements must be prepared for each tax period and retained for 7 years.
• File an annual Corporate Tax return: the return must be submitted within 9 months of the end of the financial year through EmaraTax.
• Pay any Corporate Tax due: Corporate Tax must be paid by the same deadline as the return filing, 9 months after the financial year end.
• File a Transfer Pricing Disclosure Form: where the taxable person has related-party transactions, the disclosure form must be submitted with the annual return.
• Maintain records: all accounting records, supporting documents, and tax-related records must be retained for a minimum of 7 years from the end of the relevant tax period.

Free Zone Companies and Corporate Tax

Free zone companies must register for Corporate Tax in the same way as mainland companies. However, a free zone company that qualifies as a Qualifying Free Zone Person (QFZP) may access a 0% Corporate Tax rate on its qualifying income. To qualify, the company must simultaneously satisfy 5 conditions in every tax period: adequate UAE substance, qualifying income generation, the de minimis requirement (non-qualifying revenue must not exceed the lower of AED 5 million or 5% of total revenue), audited financial statements, and transfer pricing compliance.

QFZP status does not eliminate the registration obligation. A free zone company claiming the 0% rate must still register, file an annual return, and maintain all required documentation to support its QFZP position.

VAT Registration: Thresholds and Obligations

Value Added Tax applies at a standard rate of 5% under Federal Decree-Law No. 8 of 2017. VAT registration is mandatory where a business’s taxable supplies and imports over the preceding 12 months have exceeded, or are expected to exceed in the next 30 days, the mandatory registration threshold of AED 375,000. Voluntary registration is available where taxable supplies or expenses exceed the voluntary threshold of AED 187,500.

Businesses that are VAT-registered must:

• Charge VAT at the correct rate on all taxable supplies
• Issue tax invoices meeting the mandatory field requirements for each taxable supply
• File VAT returns through EmaraTax within 28 days of the end of each tax period
• Pay any net VAT due by the return filing deadline
• Maintain VAT records for a minimum of 5 years (10 years for real estate)

The revenue reported in VAT returns must reconcile to the revenue in the IFRS financial statements. A discrepancy between the two is one of the most common triggers for an FTA audit, making the coordination between VAT compliance and financial reporting an important ongoing process.

Excise Tax Registration: Who It Applies To

Excise Tax applies under Federal Decree-Law No. 7 of 2017 (as amended by Federal Decree-Law No. 7 of 2025, effective 1 October 2025) to specific goods considered harmful to human health or the environment. There is no minimum threshold for Excise Tax registration. Any business engaged in importing, producing, or stockpiling excise goods in the UAE, releasing excise goods from a designated zone, or overseeing excise goods in a licensed warehouse must register before commencing those activities.

Excise goods currently subject to the tax include tobacco and tobacco products (including heated tobacco), electronic smoking devices and their liquids, energy drinks, carbonated drinks, and sweetened drinks. Rates range from 50% to 100% depending on the category. Excise tax returns must be filed by the 15th day following the end of each tax period.

Businesses in retail, hospitality, food and beverage, or distribution that handle any of these product categories should confirm whether their activities trigger an Excise Tax registration obligation before commencing operations.

How to Register for Tax in the UAE Through EmaraTax

All three tax registrations are completed through the EmaraTax portal at eservices.tax.gov.ae. The process for each registration follows the same platform structure:

1. Create or access an EmaraTax account: using a UAE Pass or by creating an FTA account directly on the EmaraTax portal.
2. Create or select a taxable person profile: providing the entity’s legal name, trade licence details, and business activity information.
3. Access the relevant tax section: Corporate Tax, VAT, or Excise Tax, each appears as a separate registration pathway on the dashboard.
4. Complete the registration form: entering the entity’s financial year end, nature of business, revenue figures where required, and authorised signatory details.
5. Upload supporting documents: trade licence, Emirates ID of authorised signatories, Memorandum of Association, and any other documents specified in the portal for the registration type.
6. Review and submit: confirm the accuracy of all information and submit the application. The FTA will review the application and may accept it, request further information, or reject it with reasons.

Upon successful registration, the FTA issues a Tax Registration Number (TRN) for VAT and a Corporate Tax Registration Number for Corporate Tax. These numbers must be quoted on all tax returns, invoices, and correspondence with the FTA.

Penalties for Late or Missing Tax Registration

Failure to register for any tax type by the applicable deadline attracts administrative penalties under the UAE Tax Procedures Law and Cabinet Decision No. 129 of 2025, which restructured the UAE tax penalty framework. Late registration penalties apply from the date the obligation arose, not the date the FTA identifies the failure. Businesses that have missed a registration deadline should consider a voluntary disclosure to regularise their position before the FTA identifies the non-compliance, as voluntary disclosure typically results in reduced penalties compared to those assessed following an audit.

Frequently Asked Questions (FAQs)

How Farahat & Co. Can Help

Farahat & Co. assists businesses across the UAE with Corporate Tax registration, VAT registration, and Excise Tax registration through EmaraTax, as well as the ongoing compliance obligations that follow each registration: return preparation and filing, IFRS financial statement preparation, transfer pricing documentation, and FTA audit support. As an FTA-registered Tax Agent, our team can interact directly with the FTA on behalf of registered clients.

Contact Farahat & Co. today to discuss your UAE tax registration requirements.