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.
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:
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)
| Financial Year-End | Corporate Tax Return Deadline | Payment Deadline |
|---|---|---|
| 31 Dec 2024 | 30 Sep 2025 | 30 Sep 2025 |
| 31 Mar 2025 | 31 Dec 2025 | 31 Dec 2025 |
| 30 Jun 2025 | 31 Mar 2026 | 31 Mar 2026 |
| 31 Dec 2025 | 30 Sep 2026 | 30 Sep 2026 |
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
| Type of Violation | Penalty |
|---|---|
| Late registration | AED 10,000 |
| Incorrect or incomplete return | 15% of underpaid tax + 1% monthly interest |
| Late filing of return | AED 500 (first delay), AED 1,000 (repeat) |
| Late payment | 14% per year, calculated daily |
| Not keeping accounting records | AED 20,000 |
| Not keeping records for 7 years | AED 10,000 – AED 20,000 |
| Failure to submit documents requested by FTA | AED 5,000, then AED 10,000 for repeat |
These penalties apply to mainland and free zone companies.
Many mistakes are due to misunderstandings or poor records. To avoid penalties:
According to Federal Decree-Law No. 47 of 2022, books, bank statements, invoices, and contracts are to be retained for seven years.
Only certain free zone companies will qualify for 0% tax. These must meet conditions on qualifying income and sufficient substance.
FTA might also disallow mixed expenses when these are not clearly documented.
Pay via the FTA’s EmaraTax system and register before the deadline.
Companies undertaking related-party transactions must ensure arm’s length compliance and maintain documentation.
Also Read: Corporate Tax Registration Services
The electronic registration of corporate tax takes place on the EmaraTax portal of FTA.
Steps to Register
Business information here
Upload required documents:
Send and await the approval process.
The business will be assigned a Tax Registration Number.
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.
Free zone companies also apply the same nine-month deadline, but must also consider:
Key Points:
→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.
→Companies have to file their tax return nine months after the financial year-end; for example, 30 September 2025 for December-year companies.
→Late registration: AED 10,000; late filing: AED 500–1,000; late payment: 14% per annum interest, plus other administrative fines.
→By keeping records, checking conditions of free zones, maintaining accurate expenses, and adhering to transfer pricing rules.
→Through FTA’s EmaraTax portal, including submission of company and ownership details with supporting documents.
→Deadlines that are missed will result in penalties, cancellation of Small Business Relief, and issues concerning financial planning and credibility.