UAE Corporate Tax: Registration, Rates & Deadlines Explained

The UAE introduced federal Corporate Tax for financial years starting on or after 1 June 2023. If you run a business here, understanding the basics — and registering on time — is now essential. Here's what every UAE business owner should know.

Who needs to register for UAE Corporate Tax?

Almost every business operating in the UAE must register for Corporate Tax with the Federal Tax Authority (FTA) — including mainland companies and free zone entities — even where profits fall below the taxable threshold. Registration is a legal requirement, not an optional step, and the FTA has set deadlines based on your licence issue date.

What are the Corporate Tax rates?

• 0% on taxable profits up to AED 375,000.
• 9% on taxable profits above AED 375,000.
• A different rate may apply to very large multinational groups under global minimum-tax rules.

The 0% band is designed to support small businesses and startups, but you still need to register and file — even if your tax payable is zero.

Do free zone companies pay Corporate Tax?

Free zone companies must register and file like everyone else. A Qualifying Free Zone Person may benefit from a 0% rate on qualifying income, but only if strict conditions are met — including adequate substance, qualifying activities, and meeting de minimis requirements. Getting this assessment right matters, because losing qualifying status can be costly.

Key deadlines to watch

• Registration: by the deadline the FTA has assigned to your licence.
• Filing & payment: your Corporate Tax return is generally due within nine months of the end of your financial year.
• Record-keeping: maintain accounting records and supporting documents for the required retention period.

What are the penalties for getting it wrong?

The FTA imposes administrative penalties for late registration, late filing, late payment, and incorrect records. These add up quickly and are entirely avoidable with proactive planning and accurate books.

How to stay compliant

The practical checklist is short but important: register on time, keep clean IFRS-standard books, understand which of your income is taxable, assess any free zone status carefully, and file before the deadline. If that feels like a lot to manage alongside running your business, that's exactly where a consultancy helps.

This article is general guidance based on current UAE tax regulations and is not a substitute for professional advice. Contact Hudson & Nova for advice specific to your business.

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