UAE Corporate Tax Deadline 2025: Last date, Fines and penalties

The UAE introduced Corporate Tax under Federal Decree-Law No. 47 of 2022. This law applies to the net profits of businesses for financial years starting on or after 1 June 2023. The system brings the UAE in line with global tax standards while keeping a competitive rate for companies.

It is very important to understand the 2025 corporate tax deadlines, penalties, and filing rules for all companies, especially given that the FTA established timelines that are considered obligatory on each and every taxable business.

This guide explains the deadlines, fines and penalties, and how businesses can stay compliant.

What is Corporate Tax in the UAE?

Corporate Tax is a federal tax levied on the profit of companies and certain individuals conducting business activities. It is administered by the Federal Tax Authority (FTA).

The key features of Federal Decree-Law No. 47 of 2022 include:

• 0% tax on taxable income up to AED 375,000
• 9% tax on taxable income above AED 375,000
• 0% corporate tax for free-zone companies meeting qualifying income conditions
• Applies to UAE companies, juridical persons, free zone entities, and non-resident persons with a permanent establishment.
• If the business turnover is above AED 1 million, then the registration should be done.

What Key  Deadlines for Corporate Tax Dubai in  2025

In this regard, the following are the deadlines for corporate tax registration and filing based on Ministerial Decision No. 114 of 2023: All returns shall be filed within nine months after the end of the financial year.

Corporate Tax Deadlines (2024–2025 Period)

Notes:

Applies to mainland companies and free zone companies.

Under the FTA nine-month rule.

New businesses are required to register in accordance with the FTA’s staggered registration schedule.

Also Read: Corporate Tax Services in UAE

Penalties for Missing Deadlines (2025)

These are considered penalties under Cabinet Decision No. 97 of 2023, concerning late registration, delays in filings, incorrect returns, or late payments.

Corporation Tax Penalty Table

These penalties apply to mainland and free zone companies.

What are the Tips to Avoid Common Corporate Tax Mistakes ?

Many mistakes are due to misunderstandings or poor records. To avoid penalties:

• Maintain proper books of accounts.

According to Federal Decree-Law No. 47 of 2022, books, bank statements, invoices, and contracts are to be retained for seven years.

• Understand free zone rules

Only certain free zone companies will qualify for 0% tax. These must meet conditions on qualifying income and sufficient substance.

• Keep personal and business expenditure separate.

FTA might also disallow mixed expenses when these are not clearly documented.

• Late registration should be avoided.

Pay via the FTA’s EmaraTax system and register before the deadline.

• Follow transfer pricing rules

Companies undertaking related-party transactions must ensure arm’s length compliance and maintain documentation.

Also Read: Corporate Tax Registration Services

How to register for UAE Corporate Tax before the 2025 deadline

The electronic registration of corporate tax takes place on the EmaraTax portal of FTA.

Steps to Register

• Create an account or log in to EmaraTax.
• Log in with UAE Pass.
• Open the Corporate Tax section

Business information here

• Business entity type (LLC, sole proprietorship, etc.)
• Trade license details
• Business activities
• Ownership information
• Financial year

Upload required documents:

• Trade license
• MOA / AOA
• Passport and Emirates ID copies
• Lease agreement or Ejari
• Financial statements

Send and await the approval process.

The business will be assigned a Tax Registration Number.

Why the 2025 deadline matters for SMEs

Small and medium businesses are obliged to be very punctual concerning submission deadlines, especially due to:

Penalties

The late filing fine ranges from AED 500–1,000. Late registration triggers an AED 10,000 fine.

Small Business Relief

If the revenue stays below AED 3 million, then SMEs can get 0% tax, but missing deadlines cancels this benefit.

Cash Flow Planning

Companies require time to prepare the capital for making tax payments.

Business Reputation

Tax compliance attracts banks, investors, and partners.

What is the Corporate Tax Deadline 2025 for UAE Free Zone Companies

Free zone companies also apply the same nine-month deadline, but must also consider:

• Free zone qualifying income rules
• Regulatory compliance with each zone
• Whether their income is taxable or non-taxable

Key Points:

• QFZPs are entitled to 0% taxation on qualifying income.
• All free zone entities must file returns even when paying 0%
• Calendar-year companies must file by 30 September 2025

Frequently Asked Questions (FAQs)

1. What is Corporate Tax in the UAE, and who is obliged to pay it?

→It is a federal tax imposed on business profits under Federal Decree-Law No. 47 of 2022, applying to most mainland and free zone entities. 

2. What are the key corporate tax deadlines for the year 2025? 

→Companies have to file their tax return nine months after the financial year-end; for example, 30 September 2025 for December-year companies. 

3. What are the penalties for missing deadlines? 

→Late registration: AED 10,000; late filing: AED 500–1,000; late payment: 14% per annum interest, plus other administrative fines. 

4. How can businesses avoid corporate tax mistakes? 

→By keeping records, checking conditions of free zones, maintaining accurate expenses, and adhering to transfer pricing rules.

5. How do I register for corporate tax? 

→Through FTA’s EmaraTax portal, including submission of company and ownership details with supporting documents. 

6. Why is the deadline of 2025 important for an SME? 

→Deadlines that are missed will result in penalties, cancellation of Small Business Relief, and issues concerning financial planning and credibility.