Key Takeaways
- ALL UAE businesses must register for Corporate Tax with the FTA — no exemption for small businesses, free zones, or zero-income companies.
- Tax rate: 0% on taxable income up to AED 375,000; 9% on income above AED 375,000.
- Free zone companies may qualify for 0% (QFZP status) but must still register and file annually.
- Registration deadline is tied to your trade license issue month — penalties of AED 10,000 apply for late registration.
- Late CT return filing costs AED 500/month for the first year, rising to AED 1,000/month thereafter.
- CT applies to financial years starting on or after 1 June 2023; most businesses had their first filing deadline in 2024–2025.
Updated August 2026. When the UAE Federal Tax Authority (FTA) introduced Corporate Tax (CT) on financial years starting on or after 1 June 2023, it changed the landscape for every business operating in the country. One of the most-asked questions since then: does my business have to register, and when? The answer is almost always yes — regardless of size, income level, or free zone location. This guide walks you through who must register, the exact deadlines by license month, how to register step by step, and the penalties for missing the deadline.
UAE Corporate Tax: The Basics
The UAE Federal Corporate Tax applies at the following rates:
| Taxable Income Bracket | CT Rate | Notes |
|---|---|---|
| Up to AED 375,000 | 0% | Applies to all taxable persons including mainland and non-qualifying free zone companies |
| Above AED 375,000 | 9% | Only the portion above the threshold is taxed at 9% |
| Qualifying Free Zone Income (QFZP) | 0% | Full 0% on qualifying income; 9% on non-qualifying income |
Corporate Tax is administered by the Federal Tax Authority (FTA). Businesses register, file returns, and pay any tax due through the FTA eServices portal. CT returns are filed annually, within 9 months of the end of the taxable financial year.
Who Must Register for UAE Corporate Tax?
Registration is mandatory for virtually every business entity with a UAE nexus. There is no minimum revenue or profit threshold that exempts a business from the registration requirement.
| Business Type | CT Rate | Must Register? | Deadline Trigger | Annual Filing Required? |
|---|---|---|---|---|
| UAE Mainland LLC / Sole Establishment | 0% up to AED 375K; 9% above | Yes | License issue month | Yes — return + financial statements |
| UAE Free Zone Company (QFZP) | 0% on qualifying income | Yes | License issue month | Yes — annual CT return |
| UAE Free Zone Company (non-QFZP) | 9% on taxable income above AED 375K | Yes | License issue month | Yes — annual CT return |
| RAK ICC / JAFZA Offshore Company | 0% (if no UAE-source income) | Yes (if UAE-source income exists) | License issue month | Yes — annual return |
| Foreign Company with UAE Permanent Establishment | 9% on UAE-source income | Yes | When PE is established | Yes — annual return |
| Natural Person (Individual) in Business | 0% up to AED 1M; 9% above (if turnover > AED 1M) | Yes, if business income > AED 1M | License / activity commencement | Yes |
Key rule: Even if your business expects zero taxable income or qualifies for 0% as a QFZP, you must still register with the FTA and file annual returns. Failure to register or file is treated as non-compliance and attracts penalties.
Registration Deadlines by License Issue Month
The FTA has set staggered registration deadlines based on the month your trade license was originally issued. Find your license month in the table below:
| License Issue Month | Registration Deadline |
|---|---|
| January or February | 31 May (same calendar year) |
| March or April | 30 June (same calendar year) |
| May or June | 31 July (same calendar year) |
| July, August, or September | 31 October (same calendar year) |
| October or November | 31 December (same calendar year) |
| December | 31 January (following calendar year) |
These deadlines apply to existing businesses. Newly incorporated entities are typically expected to register within 3 months of incorporation. Always confirm the exact deadline applicable to your entity on the FTA eServices portal, as the FTA has the authority to update timelines.
Penalties for Non-Compliance
- Late registration: AED 10,000 fixed penalty
- Late filing of CT return: AED 500 per month for the first 12 months; AED 1,000 per month from month 13 onwards
- Failure to maintain records: AED 10,000 for first instance; AED 50,000 for repeat violations
- Failure to submit supporting documents: AED 500–1,000 per violation
- Providing incorrect information: AED 1,000–50,000 depending on nature
The AED 10,000 late registration fine is applied immediately when the deadline is missed — there is no grace period. If your business has not yet registered, do so immediately via the FTA eServices portal to stop the penalty from accumulating further (late filing fines continue monthly).
How to Register for UAE Corporate Tax: Step by Step
- Access the FTA eServices portal — Go to eservices.tax.gov.ae. Create an account if you do not have one. You can sign in using UAE Pass (linked to your Emirates ID) or register with an email address.
- Navigate to Corporate Tax registration — Once logged in, select “Corporate Tax” from the tax type menu and click “Register for Corporate Tax.”
- Enter your business details — You will need: your Tax Registration Number (TRN) if already VAT-registered, trade license number and issuing authority, financial year start date, nature of business activities, and details of any group entities (if applicable).
- Submit and receive your CTRN — After submission and FTA review, you will receive a Corporate Tax Registration Number (CTRN). This is your unique CT identifier for all filings and correspondence.
- File your annual CT return — Within 9 months of your financial year end, log back into eServices to submit your CT return and pay any tax due. For example, if your financial year ends 31 December 2024, your filing and payment deadline is 30 September 2025.
Most registrations are processed by the FTA within a few business days to a few weeks. Keep your CTRN confirmation email for your records.
Qualifying Free Zone Person (QFZP): The 0% Route Explained
Free zone companies can retain a 0% Corporate Tax rate on qualifying income by achieving QFZP status. However, this status comes with strict conditions — and failing even one disqualifies the entire entity from the 0% rate.
- Maintain adequate substance in the free zone (real office space, sufficient employees, management and control exercised in the UAE)
- Derive qualifying income — primarily from transactions with other free zone businesses or international transactions
- UAE mainland revenue does not exceed 5% of total revenue or AED 5 million (the de minimis threshold)
- Comply with transfer pricing rules (arm’s length transactions with related parties)
- Maintain adequate financial accounts and records
- Pass the Economic Substance test for relevant activities
| QFZP Scenario | CT Treatment |
|---|---|
| All conditions met; income only from free zone / international | 0% on all qualifying income |
| All conditions met; small amount of mainland income (≤5% / AED 5M) | 0% on qualifying income; 9% on non-qualifying income |
| Any condition failed (e.g., mainland revenue exceeds de minimis) | 9% applies to ALL income (not just the excess) |
| QFZP status not claimed or not applicable | Standard rates: 0% up to AED 375K, 9% above |
The consequence of losing QFZP status is significant — the 9% rate applies retroactively to the entire taxable income of that tax period, not just the non-qualifying portion. Businesses relying on QFZP status should conduct an annual self-assessment well before their filing deadline.
Frequently Asked Questions
My free zone company makes no profit. Do I still need to register for UAE Corporate Tax?
Yes. Registration is mandatory for all UAE businesses regardless of profitability. Even if your taxable income is AED 0 and you owe no tax, you must register with the FTA, obtain a CTRN, and file an annual CT return. Failing to register results in an AED 10,000 penalty. The obligation to register is separate from the obligation to pay tax.
What is the deadline for Corporate Tax registration if my trade license was issued in October?
If your trade license was issued in October or November, your CT registration deadline is 31 December of the same calendar year. Missing this deadline triggers an immediate AED 10,000 fixed penalty. Deadlines are set by the FTA based on license issuance month — check eservices.tax.gov.ae to confirm the specific deadline applicable to your entity, as the FTA can update these timelines.
Does my RAK offshore company need to register for UAE Corporate Tax?
It depends on whether your offshore company derives income from UAE sources. Offshore companies incorporated in RAK ICC, JAFZA, or similar jurisdictions that have no UAE-source income and no Permanent Establishment in the UAE may have limited or no CT liability. However, if the company earns any income connected to the UAE, registration is required. Most offshore entities are still advised to assess their position with a qualified tax advisor and register if in doubt — the AED 10,000 non-registration fine far outweighs the cost of a professional consultation.
What happens if my free zone company earns more than 5% of its revenue from UAE mainland clients?
Exceeding the de minimis threshold (5% of total revenue or AED 5 million, whichever is lower) from UAE mainland income means your company loses its Qualifying Free Zone Person (QFZP) status for that entire tax period. This is an all-or-nothing rule: the 9% Corporate Tax rate then applies to your total taxable income above AED 375,000 — not just the mainland portion. If your business model involves significant mainland sales, you should plan for the standard 9% rate rather than relying on QFZP status.
How long do I have to file my Corporate Tax return after my financial year ends?
You have 9 months from the end of your taxable financial year to file your CT return and pay any tax due. For example: financial year ending 31 December 2024 — deadline is 30 September 2025. Financial year ending 31 May 2024 — deadline is 28 February 2025. Late filing penalties start at AED 500 per month for the first 12 months and increase to AED 1,000 per month thereafter, so timely filing is essential even if you owe no tax.
Quick Reference: UAE Corporate Tax at a Glance
| Topic | Detail |
|---|---|
| Effective Date | Financial years starting on or after 1 June 2023 |
| Standard Rates | 0% up to AED 375,000 taxable income; 9% above |
| Free Zone (QFZP) Rate | 0% on qualifying income (conditions apply) |
| Registration | Mandatory for all UAE businesses — no size exemption |
| Registration Portal | eservices.tax.gov.ae (UAE Pass / Emirates ID) |
| Late Registration Penalty | AED 10,000 (fixed, immediate) |
| CT Return Filing Deadline | 9 months after financial year end |
| Late Filing Penalty | AED 500/month (months 1–12); AED 1,000/month (month 13+) |
| Record-Keeping Penalty | AED 10,000 (first offence); AED 50,000 (repeat) |
| FTA Authority | Federal Tax Authority — tax.gov.ae |
UAE Corporate Tax is now a permanent feature of the business environment. Whether you are a startup in Dubai Internet City, a trading LLC in Sharjah, or a holding company in ADGM, registration is not optional — it is a legal obligation. The good news: for most small and medium businesses, the financial impact is modest (0% on the first AED 375,000). The risk, however, of ignoring registration is concrete: AED 10,000 in penalties from day one of the missed deadline.
For personalised guidance on free zone selection, QFZP eligibility, and CT structuring, explore our UAE Free Zone Comparison Tool or consult a registered UAE tax advisor.