Corporate Tax Services
Registered Tax Agent Regulated by the FTA (Federal Tax Authority)
Corporate Tax Services in the UAE
End-to-end support for registration, filing, and compliance, from a firm that tracks every FTA penalty change so you don’t have to.
The introduction of Corporate Tax in the UAE has created new obligations for businesses of all sizes. Companies are required to register with the Federal Tax Authority, maintain proper financial records, and file tax returns accurately and on time. Farahat & Co. is a registered FTA tax agent providing end-to-end corporate tax support, helping businesses understand their obligations, stay compliant, and avoid penalties.
- FTA-registered tax agent, with direct experience across registration, filing, and FTA correspondence
- Full-scope coverage, from Corporate Tax through transfer pricing, VAT, and e-invoicing readiness
- Current on regulatory changes, including the penalty reforms introduced under Cabinet Decision No. 129 of 2025
Whether you’re registering for the first time, preparing your first return, or reviewing a Qualifying Free Zone Person position, our team gives you a clear path to compliance without the guesswork.
Our Specialists In Corporate Tax Services
Romany Shayb
Senior Tax Consultant
Md. Kamruzzaman, FCA
Senior Tax Consultant
Ahmad Ali Jourieh
Senior Tax Consultant
Mohammed Ghoraba
Senior Tax Agent
Anas Al Salman
Corporate Tax Consultant
As a Trusted Corporate Tax Consultancy in the UAE, Farahat & Co. Offers the Following Corporate Tax Services:
How Corporate Tax Works in the UAE
Corporate Tax is a direct tax imposed on business profits, introduced under Federal Decree-Law No. 47 of 2022 and administered by the Federal Tax Authority. It applies to both UAE-based and foreign companies operating in the country, in line with international taxation standards.
Key points businesses need to understand:
- Corporate Tax applies to taxable profits exceeding AED 375,000, businesses below this threshold pay 0%, providing relief for smaller enterprises
- The UAE generally taxes businesses on income generated within the UAE
- All taxable businesses must register with the FTA, maintain proper accounting records, and file corporate tax returns within the prescribed deadlines
Corporate Tax Rates in the UAE
The Corporate Tax rate in the UAE stands at 9% for taxable income exceeding AED 375,000, while taxable income below this threshold is taxed at 0%.
| Taxable Person | Applicable Tax Rate |
|---|---|
| Natural persons and juridical persons | 9% on taxable income exceeding AED 375,000 |
| Qualifying Free Zone Persons | 0% on Qualifying Income, 9% on Non-Qualifying Income |
Who Must File Corporate Tax in the UAE?
Not all businesses are subject to paying Corporate Tax, but most are required to register. Individuals and entities engaged in business are taxable in the UAE.
- Returns must be filed by juridical persons, including LLCs, PJSCs, and private companies
- Natural persons operating as sole proprietors are liable to tax once their business income exceeds the applicable threshold
- Government-related bodies and subsidiaries of foreign corporations are also within scope
- UAE companies are required to declare relevant international revenue
- Free zone businesses are subject to specific rules depending on the classification of their zone and activities
Who Is Exempt from UAE Corporate Tax?
Certain entities and individuals are automatically exempt from UAE Corporate Tax, while others may apply for exemption.
| Automatically Exempt | Exempt Upon Application |
|---|---|
| UAE Federal and Emirate Governments, their departments, authorities, and public institutions | Qualifying Investment Funds meeting prescribed conditions |
| Companies wholly owned and controlled by a Government Entity conducting a Mandated Activity | Public or private pension or social security funds meeting conditions under Ministerial Decision No. 115 of 2023 |
| Businesses engaged in extracting UAE natural resources or related non-extractive activities, subject to Emirate-level taxation | UAE juridical entities wholly owned by certain exempt entities, engaging in activities specified in Article 4(h) of the Corporate Tax Law |
| Qualifying Public Benefit Entities listed in Cabinet Decision No. 37 of 2023 or subsequent decisions |
Small Business Relief
Businesses with revenue not exceeding AED 3 million can elect for Small Business Relief, allowing them to be treated as having no taxable income for the relevant tax period, effectively reducing their Corporate Tax liability to zero. This relief is intended to support startups and smaller businesses during the early years of the Corporate Tax regime, though eligible businesses must still register and file returns to make the election.
Qualifying Free Zone Persons and the AUP Requirement for Distributors
Qualifying Free Zone Persons (QFZPs) engaged in the distribution of goods or materials in or from a Designated Zone now face an additional compliance step. Under FTA Decision No. 6 of 2026, these businesses must obtain an Agreed-Upon Procedures (AUP) report from an independent external auditor, confirming that their customers genuinely qualify as resellers and that any imported goods entered the UAE through a Designated Zone.
The report, prepared under ISRS 4400, must be submitted to the FTA within 30 days of the Corporate Tax return deadline. Failing to submit it on time means the business is treated as not having met its Qualifying Activity conditions, resulting in loss of the 0% rate on that income for the period. Our team can prepare this report alongside your existing audit and Corporate Tax compliance work.
How Corporate Tax Filing Works
All taxable businesses must register with the FTA, maintain compliant financial records, and file their Corporate Tax returns through the EmaraTax portal. The process follows a clear sequence:
- FTA registration: businesses register for Corporate Tax and obtain a Tax Registration Number (TRN). Registration is mandatory for all taxable persons, and the FTA can register businesses that have not done so voluntarily.
- Record keeping and financial preparation: throughout the financial year, businesses maintain accurate accounting records in line with UAE Corporate Tax Law and IFRS, including financial statements and supporting documentation.
- Return preparation and review: the return is prepared based on audited or reviewed financial statements, with income, deductions, exemptions, and adjustments correctly calculated and documented.
- Filing the return: returns are submitted through EmaraTax within nine months of the end of the relevant tax period.
- Payment and record retention: any tax due is paid by the same deadline, and supporting records must be retained for at least 7 years from the end of the relevant tax period in case of FTA audit or voluntary disclosure.
Corporate Tax Deadlines
Corporate Tax deadlines depend on each company’s financial year as stated in its Memorandum of Association, with 31 December being the most common year-end. Returns and any payment due are generally required within nine months of the end of the relevant tax period, and extensions are not routinely granted.
Businesses filing their first Corporate Tax return currently benefit from a temporary relief initiative: submitting the first return within seven months of the tax period ending, rather than the standard nine, avoids late filing and late registration penalties that would otherwise apply. This initiative has been introduced to support businesses adjusting to the new regime, and eligibility should be confirmed for your specific situation.
Common Corporate Tax Mistakes to Avoid
- Late filing: failing to submit tax returns within the FTA’s prescribed deadlines
- Incomplete or missing records: not maintaining the financial documentation required to support tax filings
- Incorrect taxable income calculation: errors in determining what income is subject to tax and at what rate
- Improper expense deductions: claiming deductions that don’t meet the conditions set out under UAE Corporate Tax Law
- Free zone non-compliance: misunderstanding the specific conditions required to maintain Qualifying Free Zone Person status
- Under-reporting profits: submitting returns that don’t accurately reflect the business’s true financial position
- Ignoring regulatory updates: failing to keep up with changes to UAE tax laws, FTA decisions, and compliance requirements
Maintaining accurate, up-to-date financial records and working with a registered tax agent are the most effective ways to avoid these issues and stay audit-ready.
Corporate Tax Penalties and Compliance Risks
Non-compliance with UAE Corporate Tax requirements, whether intentional or not, can result in significant penalties, governed by Cabinet Decision No. 75 of 2023 (as amended by Cabinet Decision No. 10 of 2024) for registration and filing penalties, and Cabinet Decision No. 129 of 2025 for late payment.
- Late registration: a fixed penalty of AED 10,000, regardless of whether tax is ultimately owed.
- Late filing: AED 500 per month for the first 12 months, rising to AED 1,000 per month from the 13th month onward.
- Late payment: a flat 14% per annum, calculated monthly on the outstanding tax, effective 14 April 2026 under Cabinet Decision No. 129 of 2025.
- Failure to maintain proper records: AED 10,000 for a first offence, rising to AED 20,000 for a repeat violation within 24 months.
FTA audits can review a company’s records at any time, and businesses should ensure related-party transactions, depreciation records, and losses are properly documented. Precise, well-organised records are the single most effective protection against both financial and reputational risk during an audit.
Benefits of Corporate Tax Compliance
Adherence to UAE Corporate Tax requirements helps build trust and credibility, supporting more transparent operations, easier access to funding, and stronger investor confidence.
To stay compliant and avoid penalties:
- File returns before the due date
- Keep clear, accurate financial statements
- Review and verify all reports before submission
- Use professional corporate tax filing support for accuracy
- Stay current with FTA circulars and regulatory updates
- File a voluntary disclosure promptly if an error is identified after submission
Frequently Asked Questions
What is Corporate Tax in the UAE?
Who does UAE Corporate Tax apply to?
What are the Corporate Tax rates in the UAE?
Who is exempt from UAE Corporate Tax?
What is Small Business Relief under UAE Corporate Tax?
Who must register for Corporate Tax in the UAE?
What documents are required for Corporate Tax registration?
What are the penalties for missing the Corporate Tax filing deadline?
Are foreign companies subject to UAE Corporate Tax?
Can SMEs benefit from Corporate Tax relief?
How can a business legally reduce its Corporate Tax liability?
How can Farahat & Co. help with Corporate Tax?
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