How to File Corporate Tax in the UAE?

Being a business owner in the UAE, who is not aware of corporate tax?
For the first time, businesses operating in the UAE are subject to a federal corporate tax law, effective from June 1, 2023. It was introduced by the Federal Tax Authority as a part of its economic diversification plan and therefore it is important for businesses in the UAE to understand and comply with corporate tax regulations. We’ll walk you through how corporate tax filing UAE works, what’s required, and how accounting and tax services help you make sure you stay compliant without chaos.

Let’s get started.

Overview of Corporate Tax in UAE

Historically, the UAE has been known for its tax-free environment. But times are changing and with the introduction of Federal Decree-Law No. 47 of 2022, businesses now need to account for corporate tax, just like they do in many other global jurisdictions. This law applies to financial periods starting on or after 1 June 2023. That means if your company’s financial year runs from January to December, your first corporate tax return will be due by 30 September 2025. The UAE’s approach is still business-friendly, i.e. a 0% rate on taxable income up to AED 375,000, and a 9% rate beyond that. But make no mistake because compliance is mandatory, and the Federal Tax Authority (FTA) expects accurate, timely submissions.

Step 1: Make Sure You’re Registered

Before you even think about filing, your business must be registered for corporate tax. This is done through EmaraTax, the FTA’s online portal.

Even if your company doesn’t owe tax (say, your income is below the AED 375,000 threshold), you’re still required to register and submit a return. We’ve seen clients assume they’re exempt and skip registration. Don’t make that mistake as the penalties for non-compliance can be steep.

Step 2: Understand If You’re a “Taxable Person”

The UAE corporate tax regime makes a key distinction between types of entities:

• Juridical Persons: Most companies fall into this category, LLCs, PSCs, etc.
• Natural Persons: Freelancers and sole proprietors may also be considered taxable if their income from business activities exceeds AED 1 million per year.
• Free Zone Entities: These have their own set of rules, especially if they want to retain 0% tax benefits. It depends on whether the entity qualifies as a “Qualifying Free Zone Person.”

You’ll need to indicate your category when preparing your return and your answers will tailor the filing requirements that apply to you.

Step 3: Get Your Financial Statements Ready

Corporate tax filing UAE is the whole process that starts with your financial statements.

Here’s what’s important:

• Your financials must be prepared using accrual accounting, unless you meet the criteria to use the cash basis (typically for small businesses under AED 3 million in revenue).
• These statements should reflect your accounting income, which will be the starting point for determining taxable income.
• You’ll need to make adjustments for things like exempt income, non-deductible expenses, and reliefs.

If you’ve sought accounting and tax services, we highly recommend that you make sure your financials are aligning with the requirements under Ministerial Decision No. 114 of 2023.

Step 4: Know What Adjustments Apply

The corporate tax system requires a few key adjustments before corporate tax filing UAE. Here are a few common ones:

• Exempt Income: Dividends received from UAE companies are exempt. So is qualifying foreign branch income if you’ve elected for an exemption.
• Non-deductible Expenses: Entertainment costs over 50%, fines, and donations not made to qualifying public benefit entities can’t be deducted.
• Transfer Pricing: If your business deals with related parties or connected persons (your shareholders or group companies), make sure transactions are priced at arm’s length.

We walk clients through these adjustments using the FTA’s schedules as they help ensure nothing gets missed, and your financials are precise.

Step 5: File Through EmaraTax

Once your financials are ready and you’ve worked out your taxable income, it’s time for corporate tax filing UAE.

Here’s what the process looks like:

1. Log into your EmaraTax account.
2. Get to the Corporate Tax section and select “File Return”.
3. The system will guide you through the relevant parts based on your business profile, not every field will appear, only the ones that apply to you.
4. Attach supporting documents (e.g., audited financials, transfer pricing reports, if applicable).
5. Review everything, make your declaration, and submit.

If you’re claiming any relief, like Small Business Relief or intra-group transfers, make sure those elections are included in your return. Some of them must be made in your first tax return and can’t be retroactively added.

Step 6: Pay What You Owe (If Anything)

Once the return is submitted, you’ll need to pay any corporate tax due within 9 months of the end of your financial year.

That means if your year ends on 31 December 2024, you’ll have until 30 September 2025 to file and pay. Even if your liability is zero, corporate tax filing UAE is still mandatory.

Late submissions or payments could lead to administrative penalties, something we work hard to help clients avoid.

What Do You Need to Prepare for the First Corporate Tax Filing Season?

Here’s a quick checklist to keep you on track:

• Register on EmaraTax for corporate tax
• Confirm your tax period and business classification
• Prepare audited (or reviewed) financial statements
• Identify any exempt income or tax reliefs
• Review related party transactions
• Make necessary elections in your first return (they’re often one-time-only!)
• Submit your tax return and make payment by the due date

Wrapping It Up

Filing corporate tax in the UAE might feel unfamiliar right now, but it doesn’t have to be overwhelming. Once you understand the structure, the logic is there: register, keep clean records, follow the rules, file on time. That said, every business is a little different. Maybe you’re a Free Zone company with mixed revenue streams. Maybe you’re wondering if Small Business Relief applies to you. Or maybe you’re just trying to figure out if you need audited financials. That’s where, seeking accounting and tax services help.

At SSCOGLOBAL, we’ve helped business owners across the UAE interpret these new tax requirements, without the stressing out. We take care of the details, so you can stay focused on what actually grows your business. If you’re getting ready to file your first corporate tax return, or just want a sanity check, let’s talk.

Clarity beats confusion. Let’s make sure you’re covered.