Introduction: A New Chapter in UAE’s Business Landscape
For decades, the UAE has been a destination for entrepreneurs and companies, aided largely by its tax-free charm. But all this is changing. With the launch of Corporate Tax (CT), companies now have to deal with a new regulatory environment—one that means responsibilities as well as opportunities.
You’re a business owner, accountant, or entrepreneur based in the Emirates, and you may be wondering:
- “What’s the deadline?”
- “What’s the process like?”
These are all questions (and more) that this post will address in simple English. So grab a coffee and let’s go through this new world together.
Why Is the UAE Introducing Corporate Tax?
Let’s begin with why. The UAE has traditionally enticed international investment through a zero-tax policy. But with increasing pressure from international economic organizations such as the OECD (consider Base Erosion and Profit Shifting – BEPS 2.0), and demands for increased transparency and equity, the UAE has joined the world tax movement.
Here’s what you need to know:
- Corporate Tax became effective on June 1, 2023.
- It will cover most business entities and specific foreign entities carrying out business in the UAE.
Who Is Essential to Schedule for Corporate Tax in the UAE?
In short: nearly every business carrying out business in the UAE will need to register, whether or not they are required to pay tax.
Entities Required to Register
- UAE entities (LLCs, PSCs, PJSCs, etc.)
- Free Zone Persons (yes, even if they benefit from a 0% CT rate—more on that below)
Note: Sole proprietorships (natural persons) can be exempt unless their earnings exceed a certain threshold (AED 1 million annually from business operations).
Entities Not Mandated to Register (Exempt Persons)
Government bodies
- Government-controlled entities
- Extractive companies (oil, gas—if subject to other rules)
- Qualifying public benefit organisations
- Pension or investment schemes (if qualifying)
Let’s get down to business. Here’s how you can register your agency for corporate tax:
Step 1: Log In or Create Your EmaraTax Account
Visit the Federal Tax Authority (FTA) portal:https://eservices.tax.gov.ae
Log in with your current account or register with your Emirates ID and company information.
Step 2: Have Necessary Documents Ready
Have the following documents ready before you begin:
- Trade license
- Memorandum of Association
- Shareholders/directors’ Emirates ID
- Copies of passports
- Tenancy agreement (Ejari)
- Working phone number and valid email address
Step 3: Submit Corporate Tax Registration Form
- Complete the online CT registration form in EmaraTax:
- Choose if you’re a resident or non-resident.
- Provide business activity information.
- State financial year (normally Jan–Dec unless approved otherwise).
Step 4: Await TRN (Tax Registration Number)
You’ll be issued a Corporate Tax Registration Certificate and an individual TRN for Corporate Tax apart from your VAT TRN (if relevant).
Deadlines You Can’t Afford to Miss
Registration Deadlines Based on License Date (As of 2025)
The FTA has released a staggered registration schedule based on when your business license was issued:
License Issue Date Corporate Tax Registration Deadline
Jan–Mar 2023 May 31, 2024
Apr–Jun 2023 Jun 30, 2024
Jul–Sep 2023 july 31, 2024
Oct–Dec 2023 Aug 31, 2024
Jan–May 2024 Sep 30, 2024
What Is the Corporate Tax Rate?
- 9% on taxable income exceeding AED 375,000
- 15% for Multinational Enterprises (MNEs) under the OECD Pillar Two regulations (with consolidated revenues of €750M+)
Free Zone entities may be eligible for a 0% rate for qualifying income, but still need to register and fulfill substance requirements.
Advantages and Disadvantages of the UAE Corporate Tax
Advantages
- Global credibility: UAE is in line with OECD tax behavior, drawing in responsible investors.
- Low tax rate: 9% is still the lowest in the world.
- Encourages transparency: Boosts investor confidence.
Cons
- Added compliance burden: Particularly for small enterprises not used to tax submission.
- Risk of penalties: For late or improper submission.
- Increased administrative cost: Accounting systems, perhaps the engagement of tax advisors.
Real-World Example: Tech Startup in Dubai
You are a Dubai Internet City-based tech startup. You have been operating under a Free Zone license, with a 0% tax rate since day one.
What you need to worry about in 2025 is:
- You will be required to register for Corporate Tax even if your income is “qualifying.”
- You will need sufficient substance—actual operations, staff, and control in the UAE.
- If your income is non-qualifying (say, services to UAE mainland clients), you may pay 9%.
- You’ll need to submit your return each year and keep good books of accounts.
- 9% on taxable income exceeding AED 375,000
- 15% for Multinational Enterprises (MNEs) under the OECD Pillar Two regulations (with consolidated revenues of €750M+)
Free Zone entities may be eligible for a 0% rate for qualifying income, but still need to register and fulfill substance requirements.
Advantages and Disadvantages of the UAE Corporate Tax
Advantages
- Global credibility: UAE is in line with OECD tax behavior, drawing in responsible investors.
- Low tax rate: 9% is still the lowest in the world.
- Encourages transparency: Boosts investor confidence.
Cons
- Added compliance burden: Particularly for small enterprises not used to tax submission.
- Risk of penalties: For late or improper submission.
- Increased administrative cost: Accounting systems, perhaps the engagement of tax advisors.
Real-World Example: Tech Startup in Dubai
You are a Dubai Internet City-based tech startup. You have been operating under a Free Zone license, with a 0% tax rate since day one.
What you need to worry about in 2025 is:
- You will be required to register for Corporate Tax even if your income is “qualifying.”
- You will need sufficient substance—actual operations, staff, and control in the UAE.
- If your income is non-qualifying (say, services to UAE mainland clients), you may pay 9%.
- You’ll need to submit your return each year and keep good books of accounts.
Moral of the story: Tax-free doesn’t mean compliance-free.
False Beliefs (And the Reality)
❌ “I’m in a Free Zone, so I don’t need to register.”
✅ You do need to register, even if you anticipate 0% tax.
❌ “Startups don’t pay tax.”
✅ All startups are required to register; tax applies over AED 375,000 in profit.
❌ “I do freelance work only, so that does not apply to me.”
✅ It still applies if you are earning AED 1 million+ from business operations.
Submit Corporate Tax Registration Form
- Complete the online CT registration form in EmaraTax:
- Choose whether you’re a resident or non-resident.
- Provide business activity information.
- State financial year (usually Jan–Dec unless otherwise approved).
Wait for TRN (Tax Registration Number)
Acclaim you will furnish a Corporate Tax Registration proof and an exclusive TRN for Corporate Tax well defined from your VAT TRN (if any).
Keep Proper Accounting Records
- Income statements
- Balance sheets
- Invoices and receipts milestone
- Audit reports (optional)
Submit Your Corporate Tax Return Each Year
- First return due 9 months from when your financial year ends.
- Submit through the EmaraTax portal.
Check if You Are Eligible for Small Business Relief
If your turnover is below AED 3 million per annum (up to 2026), you can be eligible for Small Business Relief, which relieves you of tax—but not of registration or filing!
Pro Insight
Samer Younis, a tax consultant based in the UAE, opines:
“We’re advising all our clients—big and small—to take corporate tax seriously. The FTA is very clear: there’s no leniency for ignorance. If you’re doing business in the UAE, it’s your responsibility to register, report, and comply.”
Final Takeaway: Act Now, Not Later
If you’re a startup entrepreneur, a veteran business owner, or a freelancer with a trade license, registration is now the law of the land.
The silver lining? With the guidelines set forth and aid tools like EmaraTax, the registration process is doable—especially if you get an early start.
Register today, stay compliant, and future-proof your business.
Conclusion:
Don’t Just Comply—Prepare to Thrive
The application of corporate tax in the UAE is a change but not one reverse it’s the mark of puberty and onward motion. Yes, the new regulations might seem daunting initially, particularly for small enterprises or startups that have never encountered taxation. But realistically speaking, this shift is opening doors to increased transparency, international trust, and economic strength in the long run.
The point to take away? Registration’s not voluntary—it’s your path to compliance. And compliance isn’t about staying out of trouble; it’s about creating a business that’s well-organized, responsible, and primed for growth.
Whether you’re operating a one-person consultancy in Abu Dhabi or a technology company in Dubai’s Free Zone, you’ve got the tools and time to get it right. Begin with registration, know your requirements, and if necessary, obtain professional advice.
The sooner you adjust, the less complicated it is to work your way through the system—and potentially even gain from it in the long term.
