Corporate tax in the UAE is now part of doing business. Since the introduction of the corporate tax regime, companies must prepare and submit returns through the Federal Tax Authority (FTA). This includes all businesses operating on the mainland, in free zones, and even some individuals.
The process may seem technical, but with a few steps and the right documents, it becomes manageable. Whether you are a small business owner or a finance manager at a larger firm, this guide walks through what’s required to file a corporate tax return correctly.
Who Must File a UAE Corporate Tax Return in 2025?
Every business registered in the UAE that meets the taxable threshold must file a return. This applies whether your company is onshore or in a free zone. Even businesses that benefit from the 0% tax rate, like qualifying free zone persons, are still required to submit a return.
Natural persons, such as freelancers and sole proprietors, are also required to file if their total revenue from business activities exceeds AED 1 million in a year.
It doesn’t matter if you’re liable to pay tax or not. Filing is mandatory. Failing to do so can result in financial penalties and delays in future compliance.
How to File Your CT Return (Step-by-Step)
Here’s a step-by-step guide to help businesses understand how to file corporate tax returns in the UAE:
1. Determine Your Taxable Status
Check if your business is subject to UAE Corporate Tax:
- Taxable Persons include:
- UAE-incorporated entities (LLCs, PSCs, PJSCs, etc.)
- Foreign entities with a permanent establishment in the UAE
- Free zone entities (with exceptions for Qualifying Free Zone Persons under 0% tax)
- Individuals conducting business in the UAE under a commercial license
2. Register with the Federal Tax Authority (FTA)
- All taxable persons must register for corporate tax via the EmaraTax portal.
- Even exempt entities may be required to register.
- Obtain a Tax Registration Number (TRN).
3. Maintain Proper Accounting Records
- Prepare financial statements in accordance with International Financial Reporting Standards (IFRS).
- Small businesses (revenues < AED 3 million) may use cash accounting.
4. Determine Your Tax Period
- The standard tax period is the financial year (usually Jan–Dec).
- First taxable period depends on the business’s financial year:
- For example, if your fiscal year is Jan–Dec, the first tax year starts Jan 1, 2024, and ends Dec 31, 2024.
5. Calculate Corporate Tax Liability
- Standard corporate tax rate: 9% on taxable income exceeding AED 375,000
- 0% rate applies to taxable income up to AED 375,000
- Free zone entities may be eligible for a 0% rate if they meet specific criteria (Qualifying Income)
6. Prepare and File the Tax Return
- Corporate tax returns must be filed annually.
- The return must be filed within 9 months after the end of the relevant tax period.
- E.g., For Jan–Dec 2024 tax year, the deadline to file is Sep 30, 2025
- E.g., For Jan–Dec 2024 tax year, the deadline to file is Sep 30, 2025
- File the return via the EmaraTax portal
- No advance or quarterly payments are currently required (unless specified later by the FTA)
7. Make Payment
- Payment of corporate tax is due at the same time as filing (within 9 months after the end of the tax period)
- Payments can be made through the EmaraTax portal or approved channels.
UAE Corporate Tax Filing Deadlines & Penalties
Understanding the CT return due date UAE is important. The FTA has made it simple, you must file your corporate tax return within nine months of the end of your financial year.
For example, if your company’s financial year ends on 31 December, your return is due by 30 September of the following year. This gives companies time to prepare their financials, finalize reports, and enter data into the EmaraTax portal.
Missing this deadline comes with fines. So, setting internal reminders is critical to staying compliant.
Documents & Schedules Needed for UAE CT Return
Before logging into the system, businesses should prepare all necessary documents. The return requires a breakdown of income, deductible expenses, tax adjustments, and other financial details.
You’ll need:
- A financial statement covering the tax year
- Proof of business income and operational costs
- Details on related-party transactions
- Supporting documents if you’re claiming exemptions or reliefs
If your business earns more than AED 50 million annually or if you’re a free zone company, audited financial statements are required. Smaller businesses can submit unaudited financials prepared under accepted accounting standards.
These documents form the base of your return. Without them, you can’t accurately report taxable income.
Small Business Relief Option in UAE
Businesses with revenues not exceeding AED 3 million may be eligible for small business relief (Exceptions: Member of a Multinational Enterprise Group (MNE) and Qualifying Free Zone Person). This is useful for startups and small firms that operate with lean teams and low turnover.
Even if your tax rate ends up being 0%, the FTA still expects a return. This is a common misunderstanding. Small entities often assume they don’t need to file if no tax is due. But that’s not the case.
To claim the relief, businesses must elect it on their corporate tax return. This declaration must be made every tax period. If you forget to opt in, you won’t receive the benefit and might even be taxed unnecessarily.
Filing Obligations for UAE Free Zone Companies
Free zones were historically tax-free environments. But under the new law, that’s changed. Qualifying free zone businesses may still enjoy the 0% rate on qualifying income, but they must still file a return each year.
What matters is how you define “qualifying income.” If your free zone company earns non-qualifying income or has business activities outside the free zone, a 9% tax could apply to part of your earnings.
Free zone companies must also submit a schedule showing economic substance. This includes your physical office space, number of employees, and operational expenses. It’s not enough to simply register in free zone; you need to prove that real business is happening there.
Transfer Pricing & Related-Party Disclosures in CT Returns
Companies that work with related parties, such as sister companies, subsidiaries, or shareholder-linked entities, must disclose these relationships. UAE corporate tax law includes transfer pricing rules. These rules ensure that transactions between related parties are priced at market value.
If you’re a business that falls under these rules, you may need to complete a transfer pricing disclosure as part of your return. Larger businesses must also prepare local and master files, depending on their revenue and transaction volumes.
Failure to follow transfer pricing disclosure requirements can result in audit risk and compliance penalties.
Review & Submit: Final Steps in Filing Your CT Return
After completing all sections, the portal calculates the final tax due. The rate is 0% for the first AED 375,000 of profit, and 9% for anything above that threshold, unless exemptions apply.
Carefully review everything before submitting. Errors can lead to notices, fines, or a flagged profile for further review.
Once satisfied, submit the return. The system will issue an acknowledgment and a payment reference number if tax is owed.
How to Pay Corporate Tax Through EmaraTax
Tax payments must be made through EmaraTax. You can pay using a unique GIBAN (bank reference) or by using the built-in payment gateway.
Methods include bank transfers or card payments through the approved provider. Each payment must include the correct reference to be matched with your return.
Late payments are treated seriously. Even if your return is submitted on time, a delay in payment can lead to interest and penalties.
Corporate Tax Penalties in the UAE: What to Avoid
The FTA has listed specific penalties for missing obligations. Late filing penalties start at AED 500 per month and increase if the delay continues. Late payment triggers monthly interest. Failing to register at all can cost AED 10,000.
These penalties apply even to businesses that owe no tax. Filing on time matters.
How Long to Keep Documents: 5-Year Record-Keeping Requirements
After submitting your return, you must keep financial records for at least five years. This is in case the FTA decides to audit your business.
These records include:
- Financial statements
- Receipts and invoices
- Bank transactions
- Related party agreements
- Transfer pricing studies
Being organized is not only a good practice, it’s a legal requirement.
Need Help? Corporate Tax Filing Support from Bestax
For businesses that want to stay compliant without facing penalties, it often makes sense to work with a tax advisor who understands the local regulations. Bestax offers expert support for companies across the UAE. Their team provides full assistance with documentation, return preparation, and digital filing through EmaraTax.
You can explore their full range of corporate tax return services in the UAE if you’re looking for a reliable partner to handle the process end-to-end.
Getting it done right the first time saves time, avoids risk, and lets you focus on growing your business, not chasing deadlines.
Quick Frequently Asked Questions
What is the corporate tax return deadline in the UAE?
The deadline to file a corporate tax return in the UAE is nine months after the end of your financial year. Missing the deadline may result in penalties from the Federal Tax Authority.
Can free zone companies file a CT return even if tax = 0%?
Yes, qualifying free zone companies must still file a corporate tax return even if they are eligible for the 0% tax rate. Filing is mandatory regardless of the tax amount owed.
What documents and schedules are required in the CT return?
You need financial statements, proof of income and expenses, and supporting documents for reliefs or exemptions. Schedules depend on your business type and may include free zone activity, transfer pricing, and audit status.
What is the tax filing process on the EmaraTax portal?
Log in to EmaraTax, select the tax period, complete the return form, upload schedules, and submit. The system calculates tax due and provides a payment reference.
Are audited financial statements mandatory when filing CT?
Yes, if your revenue exceeds AED 50 million or you are a free zone entity, audited financials are required. Smaller businesses can file unaudited statements prepared under accepted standards.
Can Bestax help me with CT return preparation and submission?
Yes, Bestax provides end-to-end support for corporate tax return filing, including documentation, calculations, and EmaraTax submission. Their team ensures accuracy and compliance with UAE tax law.
What if I miss the CT filing deadline?
Late filing may result in penalties starting from AED 500 per month. Continued delays can lead to higher fines and interest on unpaid taxes.
How to report related party transactions and tax losses?
You must disclose related party transactions in the transfer pricing section and follow arm’s-length rules. Tax losses are reported in the relevant schedule and may be carried forward if eligible.
When should I claim business restructuring relief or participation exemption?
Claim these reliefs during the CT return filing if your transaction qualifies under UAE tax law. Supporting documentation must be submitted with the relevant schedule.
How to correct or amend a submitted CT return?
You can file a voluntary disclosure through EmaraTax to correct errors in a submitted return. The FTA may apply penalties if the correction affects tax due.
Disclaimer: The information provided in this blog is for general informational purposes only. For professional assistance and advice, please contact experts.
