How To fill Tax In UAE

How to File Corporate Tax in UAE – A Complete Guide for 2025

As the UAE continues to evolve as a global business hub, the implementation of a federal corporate tax marks a major shift in the country’s economic landscape. Effective from June 1, 2023, the UAE government has introduced a 9% corporate tax on business profits exceeding AED 375,000. This move aligns the UAE with international taxation standards and enhances transparency while continuing to offer a highly competitive business environment.

Whether you run a small business, a Free Zone company, or a multinational branch, understanding how to file corporate tax in UAE is crucial for staying compliant and avoiding penalties. This guide will walk you through the entire process of filing corporate tax, including eligibility requirements, necessary documents, deadlines, and how experts like Mehar Business Solution LLC can assist you.

What Is Corporate Tax in the UAE?

Corporate tax, also known as corporate income tax, is a direct tax levied on the net profits of companies and other business entities. In the UAE, the standard rate is 9%, which is applied only to profits exceeding AED 375,000. Income below this threshold is exempt to support startups and small businesses. The UAE corporate tax is governed by the Federal Decree-Law No. 47 of 2022 and regulated by the Federal Tax Authority (FTA).

Who Is Subject to Corporate Tax?

Corporate tax in the UAE applies to:

UAE Mainland Companies
Free Zone Companies (subject to qualifying income and conditions)
Foreign Companies with a permanent establishment in the UAE
Freelancers or sole proprietors (if annual profits exceed AED 375,000)
Branches of foreign entities
Professional service providers

Entities engaged in natural resource extraction are exempt as they are already taxed at the Emirate level.

Corporate Tax Exemptions in the UAE

While most businesses are subject to corporate tax, certain exemptions apply, including:

Government and government-controlled entities
Charities and non-profit organizations (if registered with the FTA)
Qualifying Free Zone Persons (subject to specific rules)
Investment funds (in some cases)

Understanding whether your company qualifies for exemption or preferential treatment is key to avoiding overpayment or penalties.

Step-by-Step Guide to File Corporate Tax in the UAE

Here’s a simple breakdown of how to file corporate tax in the UAE:

Step 1: Corporate Tax Registration

All taxable businesses must register for corporate tax through the EmaraTax portal on the FTA website and follow the Steps:

Create or log in to your EmaraTax account.
Fill in the required information (trade license, business details, contact).
Upload necessary documents.
Apply for review.

Once approved, you will receive your Corporate Tax Registration Number (TRN).

Step 2: Maintain Proper Financial Records

The UAE requires businesses to maintain audited financial statements by International Financial Reporting Standards (IFRS). Records must include:

Profit and Loss statements
Balance sheets
General ledgers
Tax computations

Proper accounting ensures accuracy during tax calculation and reduces the risk of penalties.

Step 3: Calculate Taxable Income

Your taxable income is your business’s net profit, adjusted for:

Exempt income (like dividends from subsidiaries)
Allowable deductions
Carried-forward losses
Transfer pricing adjustments

Profits below AED 375,000 are not taxed, while profits exceeding this are taxed at 9%.

Step 4: File the Corporate Tax Return

You must file your tax return within 9 months after the end of your financial year.

Example: If your financial year ends on December 31, 2024, the deadline to file your return is September 30, 2025.

The return must include:

Financial statements
Taxable income
Deductions and exemptions
Transfer pricing disclosures (if applicable)

Step 5: Pay the Corporate Tax Due

Once your return is accepted, the due tax must be paid within the same deadline. Delays can result in penalties, interest charges, or legal action.

Documents Required for Corporate Tax Filing

To file corporate tax, you need:

Trade license copy
Corporate Tax Registration Number (TRN)
Audited financial statements
Business activity details
Supporting invoices and receipts
Records of exempt income and deductions

Maintaining digital backups of these records is also recommended for inspection and audits.

Deadlines and Penalties

Action	Deadline	Penalty for Non-Compliance
Tax Registration	As announced by FTA	AED 10,000 for late registration
Tax Return Filing	9 months after FY end	AED 500 to AED 20,000
Tax Payment	9 months after FY end	1% per month interest, and other penalties

How Silver Oak Biz Can Help

Corporate tax compliance can be overwhelming, particularly for small to medium-sized enterprises (SMEs) and new entrepreneurs. Silver Oak Biz, a trusted name in UAE tax and accounting services providers :

✅ Corporate tax registration via EmaraTax

✅ Audited financial statement preparation

✅ Tax return filing and documentation

✅ Strategic tax planning to optimize liabilities

✅ Ongoing advisory and compliance support

We stay updated with all FTA regulations, so you never miss a deadline or make a costly mistake.

Why Choose Silver Oak Business Solution?

10+ years of experience in UAE financial regulations
A dedicated team of tax consultants and auditors
Customized solutions for all business types
Transparent pricing and timely services
Located in the heart of Dubai with remote support across the UAE

Whether you’re a startup, established enterprise, or Free Zone entity, we ensure your corporate tax filing is smooth and compliant.

Conclusion

Filing corporate tax in the UAE doesn’t have to be complex if you follow the correct process and stay ahead of deadlines. From registration to payment, each step plays a critical role in ensuring your business remains compliant under the new corporate tax regime.

To avoid the stress and risk of penalties, partner with Silver Oak Business Solution, your trusted advisor in tax, accounting, and business compliance.

Frequently Asked Questions (FAQs)

Is corporate tax applicable to Free Zone companies in UAE?

Yes, Free Zone companies are subject to corporate tax unless they meet conditions to qualify for the 0% preferential regime.

Can I file corporate tax myself?

While it’s possible, it’s recommended to work with a tax advisor to avoid compliance issues and miscalculations.

When should a company register for corporate tax?

According to FTA guidelines, companies are required to register within the specified timeline, typically starting at the beginning of the first applicable financial year.

Are there corporate tax exemptions for small businesses?

Yes. Businesses with net profits below AED 375,000 are taxed at 0% and may also be eligible for the Small Business Relief scheme, subject to specific criteria.