New Corporate Tax Law in the U.A.E and how to file returns

 The United Arab Emirates imposes a federal Corporate Tax (CT) on the net income of companies under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. The tax became effective for financial years starting on or after June 1, 2023, and applies uniformly across all Emirates.

Corporate Tax Rates

The standard corporate tax rates are structured to support small businesses and startups while staying competitive globally:

• 0% rate: Applicable on taxable income up to AED 375,000.

• 9% rate: Applicable on taxable income exceeding AED 375,000.

Exemptions and Reliefs

Certain entities and forms of income are exempt from Corporate Tax or can claim specific reliefs, including:

• Government and government-controlled entities, as well as businesses involved in the extraction or exploitation of UAE natural resources (subject to specific conditions).

• Dividends and capital gains earned by a UAE company from qualifying intra-group shareholdings.

• Approved intra-group transactions and corporate reorganizations.

• Personal income of an individual, such as salary, employment benefits, or wages.

• Interest and other personal income earned by an individual from bank deposits or savings schemes.

• Small Business Relief (SBR): Eligible resident taxable persons with gross revenue under AED 3 million in a relevant tax period can elect to be treated as having no taxable income.

How to Register via the EmaraTax Portal

Every taxable person—including Free Zone companies and certain individuals crossing revenue thresholds—must submit a registration application to the Federal Tax Authority (FTA).

1.Access the Portal:Requires UAE PASS or Credentials.

Log in to the EmaraTax portal (eservices.tax.gov.ae) using your registered email address and password, or securely via UAE PASS. If you are a new user, click Register to set up an account.

2.Select or Create a Taxable Person Profile:Dashboard Navigation.

Review your dashboard list of linked taxpayers. If the correct entity is missing, select the option to create a new Taxable Person profile by entering the legal name, structure, and license details.

3.Initiate Registration:Corporate Tax Section.

Open the selected Taxable Person dashboard, locate the Corporate Tax option, and click Register to open the formal application form.

4.Complete Details and Upload Documents:~25 Minutes.

Fill in all required corporate details, identify authorized signatories, and upload necessary documentation (such as trade licenses, passports, and Emirates IDs). Click Submit.

5.Receive TRN:FTA Approval Buffer.

Following FTA review (which may take up to 20 business days), you will receive an approval email containing your unique Corporate Tax Registration Number (TRN).

Important Penalty Note: Under FTA Decision No. 3 of 2024, deadlines for registration are strictly fixed based on your original trade license issuance month. Missing your designated registration deadline triggers an administrative penalty of AED 10,000.

Deadlines for Filing and Payment

The deadline to both file the Corporate Tax return and pay any tax due is nine months from the end of the relevant financial period.

Unlike early transition guidance, you cannot wait until the date of filing to apply for registration without risking penalties. You must be registered beforehand to submit your return.

Financial Year End	Tax Return & Payment Deadline
May 31, 2024	February 28, 2025
December 31, 2024	September 30, 2025
December 31, 2025	September 30, 2026

Failure to file on time results in a late filing penalty of AED 500 per month for the first 12 months, rising to AED 1,000 per month thereafter. Overdue tax payments incur immediate late payment penalties and accrue ongoing interest.

Step-by-Step: Declaring and Paying Your Tax

1. Calculate Taxable Income: Reconcile your accounting net profit based on standard financial statements, making necessary tax adjustments for non-deductible expenses, transfer pricing corrections, or applicable exemptions.

2. Draft the Return Form: Log in to EmaraTax, navigate to your tax returns tab, and populate the Corporate Tax form with your exact financial year data, taxable income figures, and any specific deductions or relief elections (like Small Business Relief).

3. Submit Electronically: Carefully review the declaration screen to verify accuracy. Submit the return form directly through the platform.

4. Execute Payment: Pay your tax liability before the same 9-month deadline. EmaraTax supports direct debit, bank transfers via GIBAN, credit cards, or debit cards.

5. Retain Records: Download your submission receipt and confirmation email. The FTA requires all businesses to safely preserve corporate financial and tax records for a minimum of 7 years.