The UAE's 9% corporate tax is now in full effect. Every business must register with the Federal Tax Authority, maintain proper records, and file annual returns. CorpWise handles the entire process so your business stays compliant without the complexity.
Corporate tax is a direct tax on the net income (profits) of businesses operating in the UAE. The regime was introduced under Federal Decree-Law No. 47 of 2022 and became effective for financial years starting on or after 1 June 2023.
The standard rate is 9% on taxable income exceeding AED 375,000. Income up to AED 375,000 is taxed at 0%. The regime is administered by the Federal Tax Authority (FTA) through the EmaraTax portal.
Most businesses operating in the UAE are required to register for corporate tax, even if their taxable income falls below the threshold or they qualify for an exemption. Registration, record-keeping, and annual filing are mandatory compliance obligations with penalties for non-compliance.
Corporate tax registration is required for most entities operating in the UAE. The obligation applies regardless of whether tax is actually owed.
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All mainland entities engaged in commercial, professional, or industrial activity are subject to corporate tax. If taxable profits exceed AED 375,000, the 9% rate applies on the excess.
Free zone companies must register and file returns. Those qualifying as a Qualifying Free Zone Person (QFZP) can benefit from a 0% rate on qualifying income, but only if they meet all conditions (adequate substance, qualifying activities, audited financials).
Individuals conducting business in the UAE must register if their annual business turnover exceeds AED 1 million within a calendar year.
Businesses with revenue not exceeding AED 3 million may elect for Small Business Relief, which treats taxable income as zero. This relief is available until 31 December 2026 (current sunset date). Registration and filing are still required.
From initial registration to annual return filing, CorpWise manages every part of your corporate tax obligations. We ensure your business is registered, your records are compliant, and your filings are accurate.
We prepare and submit your corporate tax registration with the FTA, ensuring your application is complete, your business is correctly classified, and your Tax Registration Number (TRN) is issued.
Corporate tax compliance requires accurate records, correct calculations, and timely filing. Professional handling eliminates the risk of errors that trigger penalties and audit exposure.
Incorrect entity classification or missed registration deadlines trigger automatic penalties. Professional registration ensures your business is categorised correctly from the start.
The difference between accounting profit and taxable income involves adjustments for exempt income, non-deductible expenses, and reliefs. Getting these wrong means overpaying or facing penalties for underpayment.
If eligible, the relief election must be made correctly in your return. Revenue must be reassessed annually. Professional handling ensures you claim every relief you are entitled to.
QFZP conditions are strict and tested annually. One failure costs you the 0% rate for five years. Professional monitoring ensures you maintain compliance continuously.
The FTA uses a risk-based audit approach with no fixed cycle. Having organised, IFRS-compliant records means any FTA review is routine rather than disruptive.
The current penalty waiver initiative is time-limited. Professional handling ensures your first return is filed within the 7-month window, securing the waiver before it expires.
Corporate tax is new to the UAE. Getting it right the first time prevents problems that compound for years.
We do not just tell you what to do. We register your business, prepare your return, and file it with the FTA. You review and approve; we handle the execution.
Many businesses in Dubai operate through free zones. We understand the QFZP conditions, de minimis thresholds, and substance requirements that determine whether you pay 0% or 9%. This is where most generic tax advisors fall short.
Because CorpWise also handles bookkeeping, VAT, and PRO services, your corporate tax filing is built on accurate records that we already maintain. No data handoffs between providers, no reconciliation gaps.
From registration to your first return, here is what happens.
We register your business with the FTA through EmaraTax, classify your entity correctly, and assess your eligibility for Small Business Relief or QFZP status.
Throughout the year, your financial records are maintained (or reviewed, if handled by our bookkeeping service) to the standard required for corporate tax computation.
After your financial year closes, we compute your taxable income, apply relevant adjustments and reliefs, prepare the return, and file with the FTA within the 9-month deadline.
We monitor regulatory changes, reassess relief eligibility annually, manage the 7-year record retention obligation, and support you if the FTA initiates a review.
Whether you are registering for the first time or navigating free zone compliance, these are the questions our clients ask most.
The standard rate is 9% on taxable income exceeding AED 375,000. Income up to AED 375,000 is taxed at 0%. Qualifying Free Zone Persons can benefit from a 0% rate on qualifying income if they meet all QFZP conditions. A 15% Domestic Minimum Top-Up Tax applies to multinational enterprises with consolidated global revenue of €750 million or more.
In most cases, yes. Registration is mandatory for most UAE-licensed businesses regardless of whether tax is owed. Small businesses eligible for relief, free zone companies claiming 0% status, and even certain exempt entities are required to register and file. The AED 10,000 late registration penalty applies regardless of whether any tax is payable.
Small Business Relief allows businesses with revenue not exceeding AED 3 million in the current and preceding tax periods to elect to be treated as having zero taxable income. The election is made in the annual tax return. This relief is available until 31 December 2026 (current sunset date) and is subject to anti-abuse rules. You must still register with the FTA and file a return.
No. Free zone companies must register and file. However, those qualifying as a QFZP benefit from a 0% rate on qualifying income. To qualify, you must maintain adequate substance, derive qualifying income, stay within the de minimis threshold for non-qualifying income, and prepare audited IFRS-compliant financial statements. Failing any condition results in losing the 0% rate for that year and the following four years.
Returns must be filed within 9 months from the end of your tax period (financial year). For a calendar year ending 31 December 2025, the deadline is 30 September 2026. Late filing triggers penalties.
Costs depend on your business structure, number of entities, revenue, and complexity (mainland vs free zone, QFZP assessment, transfer pricing requirements). CorpWise provides transparent pricing after an initial assessment, with no hidden fees. Book a free consultation to get a tailored quote.
The UAE's 9% corporate tax is now a permanent part of doing business here. CorpWise handles registration, filing, and compliance so you meet every FTA obligation accurately and on time.
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