UAE corporate tax filing has moved into its enforcement phase. Corporate tax itself is no longer new — but the Federal Tax Authority (FTA) has shifted from onboarding businesses onto the system to auditing what they have submitted, and the penalties for getting it wrong are fixed, published, and applied consistently. This guide sets out who must file, how the filing process works on EmaraTax, when your deadline falls, and exactly what each category of non-compliance costs.
Who Must Register and File
Registration is not optional, and it is not triggered by profitability. A business with zero taxable income still has to register and still has to file a return. The following are required to complete their corporate tax registration with the FTA and obtain a Corporate Tax Registration Number:
- Every UAE-incorporated company, including Free Zone entities — a Free Zone company claiming the 0% rate must still register and file.
- Foreign companies effectively managed and controlled in the UAE.
- Non-resident companies with a Permanent Establishment or taxable nexus in the UAE.
- Individuals whose turnover from business activities exceeds AED 1 million in a Gregorian calendar year. Employment income, personal investment income, and personal real estate investment income are excluded from that calculation.
The Rates You Are Assessed Against
| Who You Are | Rate | Applies To |
|---|---|---|
| Standard taxable person | 0% | Taxable income up to AED 375,000 |
| Standard taxable person | 9% | Taxable income above AED 375,000 |
| Qualifying Free Zone Person | 0% | Qualifying Income only |
| Qualifying Free Zone Person | 9% | All non-qualifying taxable income |
| Large multinational groups | 15% | Groups with consolidated revenue of EUR 750 million or more, for financial years starting on or after 1 January 2025 |
The rate structure sits within Federal Decree-Law No. 47 of 2022. Free Zone businesses should note the de minimis test carefully. Non-qualifying revenue must stay below the lower of 5% of total revenue or AED 5 million. Breach it — or fail any other qualifying condition — and the 0% benefit of the Qualifying Free Zone Person regime is lost for that tax period and the four that follow, even if you comply perfectly in the meantime.
The Filing Process on EmaraTax
The mechanics are straightforward once your records are in order. The work is in the preparation, not the portal.
- Register on EmaraTax and obtain your Corporate Tax Registration Number, if you have not already done so.
- Close your financial year and prepare financial statements on an accrual basis, supported by underlying bookkeeping records.
- Log in to EmaraTax with your credentials and open the taxable person account for the completed tax period.
- Enter accounting income, then apply the adjustments the law requires — exempt income, disallowed expenditure, interest limitations, and related-party adjustments under the arm’s length principle set out in your transfer pricing documentation.
- Apply any reliefs you are entitled to, such as the 0% band on the first AED 375,000 or Small Business Relief.
- Review the calculated liability, submit the return, and settle the payable amount through EmaraTax.
Records supporting the return must be retained for seven years from the end of the tax period they relate to.
Your Deadline: Nine Months, No Extension
The return and the payment are both due within nine months of the end of your tax period. There is no separate, later payment date — if the return is filed on the final day, the tax is due that day.
| Financial Year-End | Filing and Payment Deadline |
|---|---|
| 31 December 2025 | 30 September 2026 |
| 31 March 2026 | 31 December 2026 |
| 30 June 2026 | 31 March 2027 |
| 30 September 2026 | 30 June 2027 |
The Penalties: What Non-Compliance Costs
The penalty schedule is set out in Cabinet Decision No. 75 of 2023 and its amendments. These amounts are fixed. They are not negotiated, and they accrue whether or not you owe tax.
| Violation | Administrative Penalty |
|---|---|
| Failure to register on time | AED 10,000 |
| Late submission of the tax return | AED 500 per month for the first 12 months, then AED 1,000 per month |
| Failure to settle payable tax | 14% per annum, applied monthly on the unsettled amount |
| Failure to keep required records | AED 10,000; AED 20,000 if repeated within 24 months |
| Submitting an incorrect return | AED 500, unless corrected before the filing deadline |
| Failure to notify the FTA of a change to your records | AED 1,000; AED 5,000 if repeated within 24 months |
| Late voluntary disclosure of an error | 1% per month on the tax difference |
| Failure to disclose before an audit notification | 15% fixed penalty plus 1% per month on the tax difference |
| Failure to provide records in Arabic when requested | AED 5,000 |
| Obstructing a tax auditor | AED 20,000 |
| Late application to deregister | AED 1,000 per month, capped at AED 10,000 |
The compounding problem. A late return and an unsettled balance are two separate penalties running at the same time. A company that files six months late with an outstanding liability is paying the monthly late-filing penalty and 14% per annum on the tax owed — before any correction penalty on the return itself.
Three Changes to Plan For
Small Business Relief now runs to 2029
Businesses with revenue of AED 3 million or less can elect to be treated as having no taxable income. In a change from the original 31 December 2026 cut-off, the Ministry of Finance has extended this relief — through Ministerial Decision No. 131, which amends Ministerial Decision No. 73 of 2023 — so that it now applies to tax periods ending on or before 31 December 2029. The AED 3 million revenue threshold is unchanged. Budget for a 9% liability from your first tax period after that date.
New evidence requirements for Free Zone distributors
FTA Decision No. 6 of 2026 requires Qualifying Free Zone Persons carrying on distribution activities in or from a Designated Zone to obtain an independent Agreed-Upon Procedures report, for tax periods beginning on or after 1 January 2026. Without it — and without audited financial statements to support the position — the distribution income may not qualify for the 0% rate.
E-invoicing arrives
The UAE e-invoicing pilot opens on a voluntary basis in July 2026, ahead of phased mandatory adoption. Transaction data will reach the FTA in near real time, which raises the standard on the accuracy of the records behind your corporate tax return.
Frequently Asked Questions
Yes. Filing is mandatory for every registered taxable person regardless of profit or loss. Filing a loss also allows you to carry it forward against future taxable income, subject to the conditions in the law.
Yes. Qualifying Free Zone Persons must register, file an annual return, maintain audited financial statements, and comply with transfer pricing documentation requirements. The 0% rate is an outcome of the return — not a reason to skip it.
The FTA operated a waiver initiative announced on 7 May 2025 that removed the AED 10,000 late registration penalty where the first tax return was filed within seven months of the end of the first tax period, with refunds for penalties already paid. That relief was tied to first tax periods. For ongoing obligations, the schedule above applies, and the reliable route is filing on time.
Submit a voluntary disclosure. Doing so before the FTA notifies you of an audit costs 1% per month on the tax difference. Waiting until after the notification adds a 15% fixed penalty on top.
Filing With Confidence
Corporate tax compliance rewards preparation and punishes improvisation. If your financial year ended on 31 December 2025, your return and payment are due by 30 September 2026. ZAMA prepares and submits corporate tax returns for businesses across the UAE — reviewing your position, calculating your liability, and filing on EmaraTax on fixed, quoted fees agreed before we begin.
Schedule a free consultation to review your corporate tax position before your deadline.
This is general guidance only. For advice specific to your business, consult your ZAMA advisor. Information is current as at 19 August 2026 and reflects UAE legislation in force at that date.