Reminder for UAE Businesses: File Your Corporate Tax on Time
UAE corporate tax is no longer a new concept. Federal Decree-Law No. 47 of 2022 has been in force since 1 June 2023, and as of 2026 most businesses are on their second or third reporting cycle. The Federal Tax Authority (FTA) is now enforcing — not educating.
If your corporate tax return has not been filed, or you never registered in the first place, here is exactly what you owe, what the deadlines are, and how to close the gap before penalties compound.
The UAE corporate tax framework in one view
- Standard rate: 9% on taxable profit above AED 375,000.
- 0% rate: On taxable profit up to AED 375,000.
- Qualifying Free Zone Persons (QFZP): 0% on Qualifying Income, 9% on the rest.
- Small Business Relief: 0% effective tax for resident persons with revenue AED 3,000,000 or less in the relevant and all previous tax periods (available for tax periods ending on or before 31 December 2026).
- Registration: Mandatory for all taxable persons, including free zone entities and those under Small Business Relief.
- Filing: Annual corporate tax return on EmaraTax.
Registration and filing deadlines
The timeline logic is simple, but it trips founders up because it is activity-based, not calendar-based.
| Obligation | Deadline |
|---|---|
| Corporate tax registration | Phased by licence issuance month (FTA schedule, 2024 onwards). If you have not registered, you are late — register immediately. |
| First tax return filing | 9 months after the end of your financial year. For a 31 December year-end, that is 30 September of the following year. |
| Payment of tax due | Same 9-month deadline as filing. |
| Small Business Relief election | Must be elected on the return. Not automatic. |
| QFZP election / confirmation | On the return. Requires audited financials. |
If your first tax period was the 12 months ending 31 December 2024, your first return was due 30 September 2025. If you missed that, the clock is already running on penalties.
The penalty schedule
Per the FTA's published reminder on corporate tax non-compliance:
| Violation | Penalty |
|---|---|
| Failure to register for corporate tax | AED 10,000 (fixed) |
| Late filing of the tax return — months 1 to 12 | AED 500 per month of delay |
| Late filing of the tax return — month 13 onwards | AED 1,000 per month of delay |
| Failure to keep records | AED 10,000 first offence, AED 20,000 repeat |
| Late payment of tax due | 14% per annum on the unpaid amount |
| Incorrect return submitted | Administrative fines, variable |
A company that was meant to file on 30 September 2025 and has not filed by April 2026 is now looking at 7 × AED 500 = AED 3,500 in filing penalties alone — plus interest on any tax due. Stretch that another 12 months and you cross AED 15,000 quickly.
What to do if you have not registered
Register on EmaraTax now. The AED 10,000 non-registration penalty is a one-time fixed amount — it does not increase, but it also does not go away by waiting. Registering late is better than staying unregistered, because unregistered entities cannot file returns or elect Small Business Relief.
Once registered:
- Confirm your tax period (almost always matches your financial year).
- Elect Small Business Relief on the return if eligible.
- For free zone entities claiming QFZP: prepare audited financials and a transfer pricing file.
- File and pay by the 9-month deadline.
Records you must keep
The FTA requires corporate tax records to be maintained for 7 years from the end of the tax period. Minimum set:
- Audited or management-prepared financial statements
- Trial balance, general ledger, sub-ledgers
- Invoices issued and received
- Bank statements reconciled to the ledger
- Payroll records
- Contracts with customers, suppliers, related parties
- Transfer pricing documentation (for groups / related-party transactions above the FTA threshold)
Audit is not automatically required for every company, but if you are a QFZP, or your revenue exceeds AED 50 million, or you are part of a tax group — audited financials are mandatory.
The Qualifying Free Zone Person regime — briefly
Free zone companies can apply 0% corporate tax on Qualifying Income, provided they:
- Maintain adequate substance in the UAE.
- Derive Qualifying Income per the Ministry of Finance list (trade with other free zones, certain approved activities, exports).
- Comply with transfer pricing rules.
- Prepare audited financial statements.
- Keep non-qualifying income below the de minimis threshold (the lower of 5% of total revenue or AED 5 million).
Miss any of these and QFZP status is lost for 5 years, defaulting the entity to 9%. This is not a box-ticking exercise — it is the reason free zone companies need audits earlier than they think.
Frequently asked questions
I earn less than AED 3 million a year. Do I still need to file? Yes. Small Business Relief gives you 0% tax, but you must still register and file a return each year to claim it. No filing = no relief, and penalties apply.
My financial year ends 30 June. When is my return due? 9 months after year-end. For a 30 June year-end, the return is due 31 March the following year.
Can I file my own return on EmaraTax? Technically yes. Practically — for any entity above Small Business Relief, or claiming QFZP, or with related-party transactions — work with a tax agent. The cost of a mistaken filing is larger than the fee to do it properly.
What happens if I cannot pay the tax due on time? File the return anyway to stop the filing-penalty clock, then pay as soon as possible. Late payment interest (14% per annum) is cheaper than late filing + late payment combined.
If you are unsure where you stand, send Establishy your trade licence, last financial statements, and EmaraTax registration status. We will confirm your deadlines, calculate any exposure, and file on your behalf. WhatsApp +971 58 583 3550 or info@establishy.ae.
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