The United Arab Emirates (UAE) has undergone significant changes in its tax landscape with the introduction of Federal Decree-Law No. 47/2022 on Businesses and Corporation Taxation. This landmark legislation has broadened the scope of entities subject to corporate tax in the UAE, ranging from companies to various partnerships, unincorporated entities, and even natural persons engaged in business or business activities.
Also read: Corporate Tax Filing in UAE
This development marks a new era in corporate tax regulation in the UAE, and it necessitates a comprehensive understanding of the rules and procedures governing corporate tax registration in the UAE. Businesses operating in the UAE are required to register, file, and pay corporate tax returns to ensure compliance and avoid penalties.
This comprehensive guide outlines the registration process, corporate tax rates, deadlines, required documents, and the significance of seeking expert advice from premier corporate tax advisors in the UAE.
According to Federal Decree-Law no. 47/2022, all entities subject to corporate tax in the UAE must initiate the registration process with the Federal Tax Authority. This entails obtaining a corporate tax registration ID or number.
The registration process has been streamlined, and Taxable Persons can now register electronically through the Emara Tax Portal. It’s important to note that this registration requirement applies to businesses subject to both 0% and 9%corporate tax rates.
To facilitate a seamless corporate tax registration process and ensure compliance from the outset, corporations are advised to avail the services of trusted corporate tax advisors in the UAE. These experts possess in-depth knowledge of the UAE tax system and can guide businesses through the intricate registration process, helping them avoid costly mistakes and delays.
Corporate tax in the UAE is applied at varying rates, depending on the entity’s taxable income or generated revenue. It’s crucial to understand these rates to accurately calculate and prepare for corporate tax liabilities.
Corporate tax will be applicable at a headline rate of:
Having a clear understanding of these tax rates is fundamental for businesses to budget effectively and ensure compliance with the UAE corporate tax law.
The UAE’s new Corporate Tax regime requires businesses to register with the Federal Tax Authority (FTA) based on certain deadlines. These deadlines vary depending on factors such as your company type, the date of incorporation, and whether you qualify as a taxable entity. Here’s an overview of the key registration deadlines for 2025:
If your turnover exceeded AED 1 million in the 2024 calendar year, you are required to register for Corporate Tax by 31 March 2025. Failure to register by this deadline will result in a penalty of AED 10,000.
For businesses that were licensed before 1 March 2024, the registration deadline is based on the month your trade license was issued. Here’s a breakdown:
For companies that were incorporated on or after 1 March 2024, you must register within three months of the incorporation date.
A penalty of AED 10,000 will be levied on any business that fails to meet the registration deadline. However, if a business registers late and submits their first Corporate Tax return within 7 months after the end of their first tax period, the FTA may offer a penalty waiver.
| Entity Type | Trigger/Timestamp | Deadline |
|---|---|---|
| Natural persons (turnover > AED 1M in 2024) | 2024 turnover | 31 March 2025 |
| Companies (licensed before 1 March 2024) | License issue date | Staggered deadlines (May–Dec 2024) |
| Companies (incorporated after 1 March 2024) | Incorporation date | Within 3 months |
| Non‑residents with PE before 1 March 2024 | PE creation date | Within 9 months |
| Non‑residents with PE after 1 March 2024 | PE establishment date | Within 6 months |
Ensuring a smooth corporate tax registration process necessitates the gathering of essential documents. These documents serve as evidence of the entity’s legal status, financial standing, and other vital information. While the exact documentation may vary based on the nature and structure of the business, the following list provides a general overview of the documents required for corporate tax registration in the UAE:
The UAE’s free zones have attracted numerous businesses due to their attractive tax incentives. When a business operating within a free zone meets specific conditions, it can qualify for a 0% corporate tax rate on its Qualifying Income.
To be considered a Qualifying Free Zone Person, a business must meet the following requirements:
Navigating the intricate landscape of corporate tax registration and compliance in the UAE is a multifaceted task. With the issuance of Federal Decree-Law no. 47/2022, the importance of compliance and accurate tax reporting is essential. To ensure that your business operates within the bounds of the law and avoids potentially costly penalties, it is highly advisable to seek the expertise of reputable corporate tax consultants in the UAE.
Also read: A Complete Corporate Tax Compliance Guide for Business in UAE
Our team of experienced corporate tax experts possesses a profound understanding of the intricate financial landscape in the UAE and upholds unwavering principles of integrity. Our dedicated corporate tax advisors are committed to guiding our clients through the complexities of the tax system, ensuring that their fiscal performance is optimized to its fullest potential.
Our comprehensive range of services includes, but is not limited to:
This comprehensive guide has illuminated the key aspects of corporate tax in the UAE, ranging from corporate tax registration processes and tax rates to deadlines, required documents, and the significance of expert guidance. By following the guidelines outlined here and considering the services of experienced corporate tax advisors, businesses can navigate the complex tax landscape of the UAE with confidence, ensuring compliance and optimizing their financial performance.
Thus, contact us today and we shall be glad to assist you.
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