Corporate tax registration is mandatory for all taxable persons in the UAE. You must register even if no tax is due. If you fail to register, it can result in fines, which start from AED 10,000. Entities required to register are:
Remember, exemption does not mean exclusion. Therefore, registration is still mandatory for exemptions to apply formally.
You must understand the applicable rates and available reliefs because these elements help your business. For example, you can align your financial planning and optimize your business compliance.
| Taxable Income | Applicable Rate |
|---|---|
| AED 0 – AED 375,000 | 0% (Exempt threshold) |
| Above AED 375,000 | 9% standard rate |
Keep in mind that these rates apply to UAE resident companies and individuals under a business license.
These include small business relief (temporary) and participation exemption. For instance, small businesses earning less than AED 3 million per year can get an exemption for financial years ending before December 2026. On the other hand, participation exemption requires income from qualifying foreign shareholdings.
Gathering the following essential documents is important for ensuring a smooth and penalty-free registration:
| Step | Expected Duration |
|---|---|
| Document Collection | 1–2 working days |
| Online Registration (FTA) | Within 30 to 45 minutes |
| Verification & Approval | 3 to 5 working days |
| Receipt of TRN (Tax Reg No.) | Up to 1 week after approval |
Avoid Penalties: Entities failing to register face fines starting from AED 10,000, regardless of exemption status.
Although registering for corporate tax in the UAE is not a complex process, accuracy is very important. Follow these steps to streamline the process:
Important Tip: Save a copy of the submission confirmation and TRN receipt for compliance tracking.
Knowing about the timeline and deadlines is important. If you miss deadlines, it can result in hefty fines and disruptions to your business operations. Here is what you need to keep in mind:
| Business Type | Deadline to Register |
|---|---|
| Mainland Companies | By 31st May 2024 |
| Free Zone Entities | By 30th June 2024 |
| Foreign Businesses | Within 6 months of starting UAE operations |
| Obligation | Due Date |
|---|---|
| First Tax Return Filing | 9 months after fiscal year end (For example, Dec 2024 FY ends mean Filing by Sep 2025) |
| Tax Payment | Same as return deadline |
Example: If your financial year ends Dec 31, 2024, your first return must be submitted by Sep 30, 2025.
Expert support can make the difference. At Farahat & Co Corporate Tax Services in UAE, our registered tax agent ensures error-free filing and fast TRN issuance. We provide strategic advice on accounting periods, group relief, and qualifying income. Not only do we handle FTA queries, but we also take care of documentation. Thus, this gives you peace of mind with compliance, accuracy, and faster approvals.
Yes, all businesses, including Free Zone companies, must register for corporate tax in UAE. You can still benefit from 0% tax on qualifying income if you meet substance and activity conditions.
You still need to register and file returns even with nil tax payable. Remember, filing keeps your business compliant and avoids penalties.
Yes! But this is only once and subject to FTA approval. Keep in mind that this can impact filing deadlines. Therefore, strategic planning is important. Our Tax Agent can guide you through this process.
Eligible business groups can apply for Tax Group relief and consolidate reporting. However, this requires shared ownership or control and FTA approval.
You can get a TRN within 72 hours with complete documents. Incomplete submissions can cause delays in the process. Therefore, we recommend using a registered tax agent to reduce all kinds of risks.
Late registration can lead to AED 10,000 penalty per entity. It can cause delays in bank loans, license renewal, and government transactions. Similarly, late registration can trigger compliance alerts from FTA.