Why the UAE Introduced Corporate Tax

• This move reflects the UAE's ongoing efforts to strengthen its position as a globally competitive business hub while ensuring alignment with OECD tax frameworks and international transparency requirements. It aims to curb harmful tax practices and promote responsible tax behavior across corporate sectors, contributing to long-term economic stability.

Corporate Tax Registration in UAE – Who Must Register?

• All taxable persons, including Free Zone Persons and natural persons engaged in business activities, must register for Corporate Tax.

• Exempt persons (such as qualifying government entities or pension funds) are still required to complete registration, even if no tax is due.

• Businesses must file their Corporate Tax Return within nine months after the end of their respective financial year and settle any tax liability due.

How to Register for Corporate Tax in the UAE

The FTA has introduced a dedicated pre-registration system via the EmaraTax platform, which is used for all federal tax activities including:

• Corporate Tax & VAT registration

• Filing and submitting returns

• Requesting refunds or amendments

• Making payments or deregistration

• Creating or updating your FTA account on EmaraTax

• Preparing and uploading the necessary documents

Corporate Tax Rates in the UAE

• 0% Corporate Tax on taxable income up to AED 375,000 (for all businesses, including Free Zone Qualifying Income).

• 9% Corporate Tax on taxable income exceeding AED 375,000, including non-qualifying Free Zone income and mainland business profits.

• Large multinational enterprises falling under the OECD BEPS Pillar 2 framework (with consolidated global revenues exceeding AED 3.15 billion) will be subject to additional regulations, although the UAE has deferred this until at least 2025.