UAE Corporate Tax Guide 2025

What is corporate tax in the UAE and who must register?

Corporate tax in the UAE is a federal tax imposed on the net profit of legal entities and individuals conducting business activities within the country. The standard corporate tax rate is 9%, but it applies only to profits that exceed the legally defined threshold.

Even if a business earns below the threshold and owes no tax, registration is still mandatory. All taxable persons — including LLCs, free zone companies, freelancers, offshore companies, and branches of foreign companies — must register with the Federal Tax Authority (FTA) and submit annual tax returns, regardless of whether any tax is payable.

Who is subject to corporate tax? (individuals vs legal entities)

The following entities and individuals are subject to corporate tax in the UAE:

• All companies (mainland and free zone) with income exceeding 375,000 AED
• Branches of foreign companies operating in the UAE
• Natural persons conducting licensed business activities with income above 1 million AED (e.g., freelancers, sole entrepreneurs)
• Certain legal entities such as funds and trusts

Entities exempt from corporate tax include:

• Government and government-controlled entities (subject to conditions)
• Companies engaged in extraction of natural resources
• Public benefit organizations and approved foundations
• Investment funds meeting specific criteria
• Companies with income below AED 375,000 (note: registration is still mandatory)

Free Zone Companies: Are they exempt?

Free zone companies benefit from a 0% corporate tax rate only on qualifying income. The Federal Tax Authority (FTA) requires clear evidence and separate accounting for qualifying versus non-qualifying income. Any income not meeting qualifying criteria is subject to the standard 9% corporate tax rate.
Simply put, free zone companies must carefully track income sources to maintain tax benefits and comply with regulations.

What is taxable income?

Corporate tax in the UAE applies to taxable income, which is defined as the net profit or loss adjusted according to the UAE tax laws. Taxable income includes all revenue from commercial activities minus allowed expenses stipulated by law. Additionally, it may account for carried forward losses and applicable tax incentives.

Is corporate tax registration mandatory in UAE?

Yes — corporate tax registration is mandatory for all businesses operating in the UAE and earning profit from their activities.

New companies must register with the Federal Tax Authority (FTA) within 3 months of their establishment. The corporate tax law came into effect in June 2023, and for most companies whose financial year ended on 31 December 2024, the first tax return must be filed by September 2025.

Going forward, all businesses must file their corporate tax return and pay any tax due within 9 months after the end of their financial or tax year.

Real-world examples when registration is mandatory

• mainland companies
• free zone companies
• sole establishments and freelancers
• offshore companies
• branches of foreign legal entities

In summary, anyone conducting commercial activities in the UAE and generating profit must register for corporate tax. Registration is compulsory even if tax payment is not immediately due based on income thresholds.

Voluntary vs mandatory registration: What's the difference?

 According to Federal Decree-Law No. 47 of 2022 and FTA regulations, taxpayers in the UAE can register for corporate tax under two scenarios:

1. Mandatory registration

• Any taxable person (legal entity or individual) whose taxable income exceeds AED 375,000 annually, or who is otherwise required under the law.

2. Voluntary registration

• Entities or individuals eligible to register, even if they don't meet the AED 375,000 income threshold, but intend to register early (e.g., a free zone entity wanting 0% rate).

Required documents for corporate tax registration in UAE

Before starting your corporate tax registration on the EmaraTax portal, make sure you have all necessary documents prepared.

• Trade license/commercial registration
• Memorandum of Association/Articles of Association
• Authorized signatory details and Emirates ID
• Passport copies of shareholders/owners
• Address details and proof of business location

How to register for corporate tax in the UAE: Step-by-step process

Before you begin, gather all necessary company documents and owner details on a computer for easy reference.

Step 1: Access the FTA login page

1. Search for FTA login on Google
2. Click on the first link that appears in the search results. This will lead you to the EmaraTax portal - https://tax.gov.ae/en/

Step 2: Sign up for a new account

On the EmaraTax portal page, scroll down and click on Sign up here to create a new FTA account.

Step 3: Enter owner information

1. Fill in the required information about the owner in the appearing form:

• Email address: Enter the owner's active email address.
• Owner name (English)
• Owner name (Arabic). It's recommended to use the Arabic version found on the Emirates ID (EID).
• Phone number

Step 4: Create and confirm your password

1. Create a strong password that is between 10 and 20 characters long. You can consider using your company name as part of the password.

Step 5: Enter security code and review information

1. Enter the security code displayed on the page.
2. Double-check all entered information carefully, including:

• Email ID
• Names (English and Arabic)
• Password
• Country phone number

Step 6: Enter OTP

1. Once you have verified all the information, click on Continue.
2. You will receive a One-Time Password (OTP) on the registered email address you provided.
3. Enter this OTP into the designated field on the EmaraTax portal to complete the registration process.

Step 7: Create a Taxable Person

1. Select Taxable Person and click Proceed
2. Fill in your company information:

• Enter your company name in English
• Enter your company name in Arabic
• Select your preferred language and communication channel

Click Create. A new Taxable Person will now be successfully created

Step 8: Fill in the information about the Taxable Person

1. Click View under your Taxable Person to open your company profile
2. Locate Corporate Tax, click the three-dot Action button, and select Register

3. Read the requirements and, if you agree, check the confirmation box
4. Select Entity Type: Legal Person Incorporated (applicable to LLCs, Free Zone Companies, and other entities with separate legal personality. Not typically applicable to sole proprietorships unless separately incorporated as a legal entity.)

Select Subtype: UAE Private Company (including Establishment)
Enter the Date of Incorporation (found on your Certificate of Incorporation)
Indicate whether your entity is a Qualifying Public Benefit Entity
Upload your Certificate of Incorporation
Enter your Tax Period and click Next

Step 9: License information

1. Upload your Business License

2. Enter license details: issuing authority, license number, issue date, expiry date, and legal name (as per your company name)
3. Select the Business Activity (as per your Memorandum of Association). If you have more than one activity, click Add to include additional ones
4. Add owners, if there are owners with more than 25% of ownership

5. Select Add owner.  Fill in the owner’s details.
6. Proceed to the next step.

Step 10: Contact Details

1. Fill in your company’s contact details: address, email, and phone number

Step 11: Add Authorized Signatory

1. Click Add Authorized Signatory

2. Enter the details of the manager or director who will act as the authorized signatory
3. Select the Source of Authorization — typically the Memorandum of Association
4. Click Add
5. Click Save as Draft and proceed to the next step

Step 12: Review and Submit

1. Carefully review all the information you’ve entered

2. If everything is correct, check the box to confirm that the information provided is true and accurate
3. Click Submit

Done! Your registration is now complete.

After a taxable person completes corporate tax registration on the FTA portal, the Tax Registration Number (TRN) is typically issued within 20 business days, provided that all required information and documents are complete and accurate.

You will receive an email notification once the TRN is available.

Timeline & fees for corporate tax registration

Registration deadlines

• New companies must register for corporate tax in the UAE within 3 months of receiving their trade license.
• Existing businesses in the UAE were required to complete registration in 2024, based on their license issue date and FTA’s official timeline.

Tax filing deadline

• Corporate tax returns must be filed within 9 months after the end of the financial year.
• Tax payments (if due) are also expected within this 9-month window.
• For most businesses with a standard financial year (January–December), the first return and payment will be due by September 2025. For those registered in 2025, the first return will be due by September 2026.

Registration fees

• FTA registration via the EmaraTax portal is free.
• You can complete the process on your own or contact a business consultant.
• If you choose professional assistance, registration fees will vary depending on the consultant’s pricing and scope of service.