Corporate Tax Registration in the UAE: What You Need to Know

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 (like dividends or real estate held in a personal capacity) are not subject to corporate tax.

It’s important to note that even if your business is not currently generating a profit or is exempt (e.g., 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 instance:

• 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 3 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 person or exempt person required to register. It’s a significant opportunity for businesses to rectify non-compliance without incurring financial penalties.

4. How to Register for Corporate Tax in UAE: Step-by-Step

Corporate tax registration must be completed through the EmaraTax portal, the FTA’s online platform. Below is an overview of the process:

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. If not, a new account must be created.

Step 2: Prepare the Required Documents

You’ll need to submit the following:

• Trade licence(s)

• Emirates ID and passport copy of the authorised signatory

• Articles of Association (if applicable)

• Details of business activities

• Information about parent or related entities (if any)

Step 3: Submit the Corporate Tax Registration Application

Via the dashboard, select “Corporate Tax” and complete the online form, uploading all required documentation. Ensure consistency with your trade licence and actual operations to avoid delays or complications during audits.

Step 4: Await Tax Registration Number (TRN)

Once approved, the FTA will issue a corporate tax TRN. This number will be used for future filings and correspondence with the authority.

5. Additional Considerations: Free Zone Entities and Group Structures

Many businesses registered in UAE free zones (e.g., DMCC, DAFZA, RAKEZ) may benefit from a 0% corporate tax rate—but only if they qualify as a “Qualifying Free Zone Person” and meet stringent conditions, including:

• Maintaining adequate economic substance in the UAE

• Earning qualifying income (e.g., income from outside the UAE or other free zone entities)

• 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.

Similarly, the UAE allows the formation of tax groups, whereby multiple UAE-resident entities under common control may file a single tax return. This requires prior FTA approval and may streamline tax administration for large or structured business groups.

6. Corporate Tax Is Here to Stay—Be Proactive

The UAE’s corporate tax regime signals a shift toward increased regulatory oversight and financial transparency. While the standard tax rate of 9% remains competitive globally, non-compliance—especially failure to register—carries serious consequences.

7. Next Steps

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

Don’t wait until the deadline or risk incurring fines. Reach out to us today for a compliance review or assistance with the registration process.

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We hope this post will help you and remain available for any questions regarding this post of general application.

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*The information on this page is not intended to be legal advice. This article is intended to provide an initial introduction to the key topic on why, when and how to register for corporate tax in UAE.