0. Introduction

Should you register for corporate tax in the UAE? Since the introduction of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, effective from 1 June 2023, corporate tax has become a central compliance issue for businesses operating in the UAE. While the country remains a globally competitive tax jurisdiction, corporate tax registration is now mandatory for most entities—regardless of whether they generate taxable income.

This publication outlines who must register, key deadlines, the registration process, and recent developments, including the FTA’s penalty waiver initiative, to help businesses navigate compliance and avoid unnecessary penalties.

1. Who Needs to Register for Corporate Tax in the UAE?

All juridical persons (companies and other entities with separate legal personality) incorporated or effectively managed and controlled in the UAE are subject to the corporate tax law. This includes:

Mainland UAE companies
Free zone companies (even those benefiting from a 0% corporate tax rate must register)
Branches of foreign companies operating in the UAE

Sole proprietors and freelancers earning income under a commercial licence also fall within the scope if their net profit exceeds AED 375,000 annually. However, individuals earning income purely from employment or personal investments (such as dividends or real estate held in a personal capacity) are not subject to corporate tax.

It is important to note that even if your business is not currently generating a profit or is exempt (for example, certain qualifying free zone entities), you are still obligated to register with the FTA.

2. Key Deadlines and Fines

The FTA has issued Decision No. 3 of 2024, setting out specific timelines for corporate tax registration based on the date of licence issuance. For example:

Companies incorporated before 1 March 2024 generally have between May and December 2024 to register, depending on their licence issuance month.
New entities must register within three months from the date of incorporation or licence issuance, whichever is earlier.

Missing the registration deadline can result in administrative penalties of AED 10,000 per entity.

3. Recent Development: Penalty Waiver Initiative

In a move to support businesses during the transition to the new corporate tax regime, the FTA announced a penalty waiver initiative in May 2025. Under this initiative:

Businesses that missed the corporate tax registration deadline can have the AED 10,000 penalty waived if they submit their tax return (or annual declaration, for exempt entities) within seven months from the end of their first tax period.
If the penalty has already been paid and the tax return or declaration is submitted within the seven-month window, the amount will be refunded to the taxpayer’s account with the FTA.

This initiative applies only to the first tax period of the taxable or exempt person required to register and represents a significant opportunity to rectify non-compliance without financial penalties.

4. How to Register for Corporate Tax in the UAE

Corporate tax registration must be completed through the EmaraTax portal, the FTA’s online platform.

Step 1: Create or Access Your EmaraTax Account

If your business is already registered for VAT or excise tax, you will use the same EmaraTax credentials. Otherwise, a new account must be created.

Step 2: Prepare the Required Documents

The registration process requires the submission of:

Trade licence(s)
Emirates ID and passport copy of the authorised signatory
Articles of Association, where applicable
Details of business activities
Information on parent or related entities, if any

Step 3: Submit the Corporate Tax Registration Application

Through the dashboard, select “Corporate Tax” and complete the online form, uploading all required documentation. Ensure that the information matches your trade licence and actual operations to avoid delays or audit issues.

Step 4: Receive Your Corporate Tax Registration Number

Once approved, the FTA will issue a corporate tax TRN, which will be used for all future filings and correspondence.

5. Additional Considerations: Free Zone Entities and Group Structures

Many businesses registered in UAE free zones may benefit from a 0% corporate tax rate, provided they qualify as a “Qualifying Free Zone Person” and meet strict conditions, including:

Maintaining adequate economic substance in the UAE
Earning qualifying income
Not electing to be taxed at the standard 9% rate

Such entities must still register for corporate tax and submit annual returns, even if no tax is payable.

The UAE also allows the formation of tax groups, enabling multiple UAE-resident entities under common control to file a single tax return, subject to prior FTA approval.

6. Corporate Tax Is Here to Stay—Be Proactive

The UAE’s corporate tax regime reflects a move toward increased regulatory oversight and financial transparency. While the standard 9% rate remains internationally competitive, failure to comply—particularly failure to register—can result in significant penalties.

7. Next Steps

If your company operates in the UAE, it is no longer a question of whether you must register for corporate tax, but when and how to do so correctly.

Do not wait until the deadline or risk unnecessary fines. Contact us for a compliance review or assistance with the registration process.

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We hope this post is helpful and remain available to address any questions of general application.

For further insights on doing business in the UAE, explore our business publications, our YouTube resources, and all our publications, as well as video insights by Maria Rubert, Managing Partner.

The information on this page is provided for general guidance only and does not constitute legal advice. It off

Frequently Asked Questions

When should a company register for UAE Corporate Tax?

A company should register for UAE Corporate Tax within three months from the date its trade licence is issued.

When should a sole establishment register for UAE Corporate Tax?

A sole establishment should register for UAE Corporate Tax once its turnover reaches AED 1 million.

What is the corporate tax registration deadline for new companies in the UAE?

New companies in the UAE should complete their corporate tax registration within three months of the trade licence issuance date.

Do sole proprietors need to register for corporate tax in the UAE?

Yes. Sole proprietors (sole establishments) are required to register for corporate tax in the UAE once their turnover reaches AED 1 million.

Does the corporate tax registration requirement depend on the type of business?

Yes. The registration requirement depends on whether the business is a company or a sole establishment, as each has a different registration trigger and timeline.

What does corporate tax registration in the UAE involve?

Corporate tax registration in the UAE is the formal process by which a business or entity registers with the Federal Tax Authority in order to obtain a tax registration number and comply with corporate tax obligations under UAE law. Registration is the first step toward filing tax returns and meeting the applicable corporate tax requirements.

Who must register for corporate tax in the UAE?

Most businesses and commercial structures operating in the United Arab Emirates are required to register for corporate tax. This includes mainland companies, free zone entities, branches of foreign companies and, in certain cases, individuals conducting business activities that exceed specific income thresholds.

Is registration required even if the company did not make a profit?

Yes. The obligation to register is based on the entity’s tax status under UAE corporate tax law, not solely on profitability. While tax payable may vary depending on income thresholds and exemptions, registration with the tax authority is mandatory for most businesses operating in the UAE.

What happens if a business does not register on time?

Failure to register within the prescribed deadlines may result in administrative penalties and complications when filing future tax returns. The tax authority may impose fines and, in some cases, allow transitional relief or corrective measures if specific conditions are met.

What documentation is typically needed for corporate tax registration?

The registration process generally requires documents confirming the legal existence and activities of the business, such as a valid trade licence, ownership and management details, and other corporate information necessary to properly identify and register the entity with the tax authority.