Step-by-Step Guide to Corporate Tax Filing in UAE (2026)

A Taxable Person must file its tax return and pay any due Corporate Tax to the FTA within nine months after its tax period ends. It is a self-assessment system. This guide shows how to prepare and file Corporate Tax Return through the Federal Tax Authority’s EmaraTax portal. It turns the detailed instructions from the FTA Corporate Tax Returns Guide (Nov 2024) into easy steps for business owners, accountants, and finance managers. The guide is based on the latest FTA rules and Corporate Tax Law to help you file accurately and stay compliant.

KEY POINTS

• Corporate tax filing is mandatory for all the companies in the UAE, including mainland entities, free zone companies (including companies with qualifying and non-qualifying revenue), civil companies, foreign companies that have permanent establishment in the UAE, and natural persons who earned over AED 1m taxable revenue from business or business activities during a calendar year.
• To file corporate tax return accurately and successfully, businesses must provide detailed information and supporting documents. These documents and information include:

1. Details about taxable person (business activity details, revenue, confirmation about accounting method used i.e. accrual of cash)
2. Details of transfers between qualifying groups
3. Details about business restructuring relief
4. Income from foreign permanent establishments
5. Financial information about business revenues, expenses, assets, liabilities, and equity
6. Supporting schedules, tax adjustments, related party and other disclosures, exemptions, tax credits, etc.
7. Audited financial statements from an MOE licensed audit firm if the taxable person’s revenue is above AED 50m, tax groups, and qualifying free zone persons

• Corporate tax return must be filed within 9 months after the relevant financial year ends. Failure to file corporate tax return on time will result in the following penalties:

1. AED 500 per month penalty for the first twelve (12) months
2. AED 1,000 per month from 13^th month and onwards
3. The late filing penalties will continue to apply until the return if filed

• Corporate tax must be paid by the payment deadline which is the same as the corporate tax filing deadline. Failure to pay the due tax on time will result in 14% annual interest penalty on the outstanding tax amount and the interest will continue to accrue until the corporate tax is paid.

Key Deadlines and Tax Rates

Corporate Tax Registration Deadline: All UAE businesses must register for Corporate Tax with the Federal Tax Authority (FTA) before their assigned deadline, which depends on the trade license issuance month. Entities formed after 1 March 2024 must register within 3 months of incorporation.

For individuals (like freelancers or sole proprietors), registration is required if annual business income exceeds AED 1 million, by 31 March of the following year. If you miss the corporate tax registration deadline, you could be fined AED 10,000 by the FTA.

Filing Deadline: Corporate Tax returns need to be submitted within nine months following the end of the financial year.

Corporate Tax Rate: Businesses in the UAE are charged 9% Corporate Tax on profits exceeding AED 375,000, while income up to AED 375,000 is taxed at 0%. This lower rate also applies to Qualifying Free Zone entities, provided they meet the Federal Tax Authority’s specified conditions.

Filing Platform: Online through the FTA’s EmaraTax portal.

Register and Verify Your TRN and Tax Period

Registration: If you haven’t completed your corporate tax registration yet, firstly register for Corporate Tax on EmaraTax and get your TRN (Tax Registration Number). Corporate tax registration is mandatory for taxable companies, and it is required for corporate tax filing UAE.

Confirm your Tax Period: Most businesses follow their financial year (the 12 months used for their accounts), while individuals use the calendar year.

If your financial year finishes on 31 December 2024, your Corporate Tax return should be submitted by 30 September 2025, which is exactly nine months later. This nine-month window is the standard filing period set by the Federal Tax Authority (FTA) for all businesses.

You can request to change your tax period with FTA approval, but please verify that the pre-filled Tax Period in EmaraTax is accurate.

Why check now: The details shown in EmaraTax come directly from your registration. If your registration information is wrong, some sections might not appear, or you could see the wrong options for elections and schedules.

Documents and Accounting Preparation

Before filing your Corporate Tax Return, gather and review all key financial and supporting documents. These records help ensure that your return is accurate and compliant with FTA requirements.

You should have:

• Financial Statements: Mandatory for all businesses, unless you are claiming Small Business Relief.
• Audit Report (if audited): Include the auditor’s name and opinion. All UAE businesses that are earning over AED 50 million, as well as Qualifying Free Zone Persons, are required to maintain audited financial statements. 
• General Ledger, Trial Balance, and Reconciliations: Required to ensure that your accounting income matches the figures reported in the tax return.
• Related-Party Contracts and Invoices: Needed for the Connected Persons Schedule and Transfer Pricing verification.
• Proof of Foreign Tax Paid: This is needed when you want to claim a credit for taxes paid in another country.
• Tax Residency Certificates: Needed if you are relying on a Double Taxation Agreement (DTA) or making a Foreign Permanent Establishment (PE) election.
• Valuation Documents: Provide evidence of market value for financial assets or liabilities if Transitional Rules apply.

Having these ready before you begin filing will make the EmaraTax process faster and reduce the risk of missing or incorrect entries.

How the Tax Return Is Structured

The Corporate Tax Return in the UAE is divided into several key parts. Each section gathers specific information needed to calculate and report your tax correctly. When you file through EmaraTax, only the sections relevant to your business type will appear.

Here is how the return is organized:

Part A – Taxable Person Information:

• Verifies your Tax Registration Number (TRN) and registered business details.
• Confirms your resident or non-resident status for tax purposes.
• Checks your turnover and accounting basis (cash or accrual).
• Identifies the number of businesses or activities you operate.
• Used to verify whether you are operating in a Free Zone and meet the conditions for Free Zone status.
• Checks whether you are part of a Tax Group or an Unincorporated Partnership.

Part B – Elections:

Covers any tax elections you wish to make, such as Small Business Relief, Realization Basis, Foreign Permanent Establishment Exemption, or Group and Restructuring Reliefs.

Part C – Accounting Schedule:

Requires figures from your financial statements, including accounting income and audit details.

Part D – Accounting Adjustments and Exempt Income:

Adjusts accounting income for tax purposes, including exempt income, disallowed expenses, and transitional adjustments.

Part E – Reliefs:

Records any reliefs claimed, such as Transfers within a Qualifying Group or Business Restructuring Relief.

Part F – Other Adjustments:

Includes non-deductible expenses, interest limitation adjustments, and related-party transactions.

Part G – Tax Liability and Tax Credits:

Calculates your Taxable Income, applies Tax Losses and Foreign Tax Credits, and determines the Corporate Tax payable.

Part H – Review and Declaration:

The final review and confirmation section where you declare that all information provided is true and complete.

Part I – Schedules:

Additional forms and attachments for specific situations, such as Free Zone schedule, UAE dividends schedule, FPE schedule, tax credits, related party schedules, tax loss schedules, participation exemption, unrealized gains/losses, transitional rules schedules and attachments.

What are the Main Steps to File Corporate Tax in the UAE?

Below are the main steps to file corporate tax in the UAE: 

Note: Some of the fields in below images have been prefilled by us only for illustrative purposes. The purpose of this is to assist you in understanding the filing process in a better way. Please complete your tax return based on your company’s operational and financial position. We accept no responsibility for any reliance placed on this guide and users are advised to obtain professional help, when necessary.

Step 1: Log in to EmaraTax

• Open the EmaraTax portal and log in using either your UAE Pass or registered email and password. If you are logging in through UAE Pass, you do not need to register separately. The system will fetch your data from UAE Pass.

 

• Once logged in, the system will show all the taxable persons registered under your profile. Select the corporate tax account from this list and click View option to open the account and access the filing forms.

Step 2: Open Corporate Tax Filing Section

• On the left side of your screen, you will see a list with different options like VAT, Excise Tax, Corporate Tax, etc. Click on the Corporate Tax button and then “View All” under the corporate tax filings section.

• Now, choose the tax period for corporate tax return filing and click “File” button to begin. Your previous corporate tax filings will be appearing under the latest to be filed tax return.

• Now a small message will be appeared on your screen. This messages reminds you that you must chose correct legal person (person means a legal person or a natural person) to file your tax return. Read the information and click on Acknowledge and Proceed button.

• The instruction guidelines page includes all the vital details for corporate tax filing UAE. Here you can find all the documents and information required for tax return. Ensure to prepare these documents before proceeding so that you do not have to stop in between. This page also includes the eligibility criteria, service steps, and FAQs for more information and help. After reviewing the page, click on the small box on the left side and then the “Start” button.

Step 3: Taxpayer Details (Part A)

Taxpayer details are prefilled based on your profile. You cannot make any changes to these details within the tax return form. In case a change needs to be made, you should use Amend Taxable Person option in your EmaraTax dashboard. However, if your corporate tax return deadline is near and you foresee that the changes may not be approved by FTA on time, submit your corporate tax return first and update the details afterwards. The fields that are auto filled are legal name of your business, Tax Registration Number (TRN), registered address, and incorporation status.

• After verifying all your details, select the option “Yes” and click on “Next Step”.

Step 4: Taxable Person Information (Part B)

• Select the relevant option to confirm whether your business is an unincorporated partnership or no. Note that most of the businesses in the UAE are not unincorporated partnerships.
• Confirm if you are a government entity, government controlled entity, etc.
• If you select the cash basis for preparing your financial statements, the system will adjust the options automatically. Questions related to the realization basis will be deactivated. Transitional rules sections will also not appear since they do not apply on cash basis of accounting. Although this helps simplify the return but remember most of the businesses in the UAE use accrual basis of accounting instead of cash basis.
• Under the Free Zone section, if you select “Yes”, the system will ask whether the taxable person is making an election to be subject to corporate tax under the standard corporate tax regime. If you are a Qualifying Free Zone Person and you have all the required evidences to prove that, click “No” otherwise click “Yes”.
• Review your answers carefully and click “Next Step”.

Step 5: Elections and Relief Options

This section allows the taxable person to make key corporate tax elections that may affect how income, assets, and transactions are treated for UAE corporate tax purposes. Please note the selection of these elections can be made only once in the first tax return. From the second tax return and onwards, the system will not allow you to edit and make changes to these elections. So choose carefully. No rush decisions here. Once all the questions have been answered, click “Next Step” to proceed.

Realization Basis Election: It means you pay tax only when the gains or losses are realized. For example, a business sold shares and made AED 100,000 profit. Since the investment has been sold and profit has been realized, AED 100,000 has become taxable. But if this investment was not sold and the profit was not realized, you will not pay tax on AED 100,000. If you hold long term investments and do not intend to sell them, it is financially viable to elect for realization basis so that you only pay tax when you sell that investment. But, every business has its own unique circumstances so it is recommended to take professional advice before making the elections.

Small Business Relief: Any UAE resident business with revenue of AED 3 million or less for tax periods between June 1, 2023, and December 31, 2026 can elect for Small Business Relief and take advantage of 0% corporate tax. However, please note this benefit can only be availed until December 31, 2026 and after that businesses would be required to file normal tax return and pay the applicable tax. If you elect for Small Business Relief, your tax return will be significantly reduced and relatively very minimum information will be required for corporate tax filing UAE. For more information, please refer to our detailed guide about Small Business Relief under the UAE corporate tax regime. 

Group Transfer and Restructuring Relief: This relief allows companies within the same Qualifying Group to transfer assets, liabilities, or a business (or part of a business) between related entities without triggering immediate UAE corporate tax, provided specific legal and ownership conditions are met. Please note you must elect for this relief before the transfer, and not after the transfer. So if you are moving assets, shares, or business divisions within your group, this is something you might want to consider.

Business Restructuring Relief : Business restructuring relief allows companies within the same Qualifying Group to transfer a whole business, or an independent part of the business, to another group company, provided legal and ownership conditions are met. But you can use it when you move a business, division, branch, or an operational unit between related group companies as part of a genuine internal reorganization (e.g., merger, demerger, or restructuring).

Please note that appropriate supporting documentation must be maintained for FTA review, if requested. If the qualifying group conditions cease to exist within the prescribed period following the restructuring, the deferred tax may become payable in accordance with the UAE Corporate Tax Law.

Foreign Permanent Establishment (FPE) Exemption: This exemption can be used by UAE businesses with a branch or office in another country. It allows the UAE entity to exclude the income and related expenses of the Foreign Permanent Establishment from UAE taxable income, provided that such income is subject to corporate tax in the foreign jurisdiction at a rate of 9% or higher. If this option is used, the taxable person needs to complete the Foreign Permanent Establishment Schedule while filing the UAE tax return. Please also note that adequate documentation should be retained in case of FTA review.

Foreign Permanent Establishment Schedule: If your UAE company has a branch or office in another country, this schedule is for you. It needs to be completed if you elected to exclude your foreign branch’s profits from your UAE taxable revenue. Please note this election is irrevocable and you should only apply for exemption if your company has a foreign permanent establishment.

Step 6: Complete the Accounting Schedule

• This is a critical section which must be completed carefully. Refer to your audited financial statements or management accounts and complete this schedule accordingly.
• Confirm whether your financial statements have been audited. If yes, provide the auditor’s name and the opinion issued by auditors. Click the “Next Step” to move to the next section.

Step 7: Report Adjustments and Exempt Income

When you complete your corporate tax return, you begin with your company’s profit as shown in your financial statements (audited or unaudited). However, this profit is not always the same as your taxable profit, so you need to make a few adjustments:

• Add back any expenses that the corporate tax law does not allow as deductible expenses. For example, personal expenses, fines and penalties due to your fault, non-qualifying donations, etc.
• Remove any income that is exempt from corporate tax. For example, dividends or qualifying investment incomes.
• If you choose special options like the realization basis or transitional relief, apply the relevant adjustments as required.

Accounting Income (Part A)

• Based on the details provided under profit and loss and adjustments schedules, FTA’s system will calculate accounting income for the tax period.
• Audited financials are mandatory for companies with revenue above AED 50 million, all Qualifying Free Zone Persons, and tax groups.

Realization Basis Adjustments (Part B)

• Confirm if any unrealized gains or losses were realized during the year. If yes, complete the Unrealized Gains and Losses Schedule.
• Also confirm if any prior year unrealized gains or losses were realized during the year and complete the related schedule.
• Compete the adjustments section for depreciation, amortization, and other adjustments.

Transitional Adjustments and Schedule (Part C)

Transitional Rules Election: Allows you to adjust the value of assets or liabilities that existed before corporate tax started, so you don’t get taxed twice on old gains. If you have property, intangibles, or investments bought before your first tax period and you sell it, you will use the relevant schedule. The schedule separates the total gain into two portions:

• The gain that arose before the corporate tax regime (which is not taxable), and
• The gain that arose after the corporate tax regime began (which is taxable).

Note: Once you make this election, you can’t reverse it. Keep records showing market value as proof. Market value of assets can be taken from online sources or your broker.

Transitional Rules Schedules: If you used the Transitional Relief Election in your first tax period, complete the schedules for:

• Qualifying Immovable Property (like buildings or land)
• Qualifying Intangibles (like trademarks or software)
• Qualifying Financial Assets and Liabilities

Transitional schedules show how pre-tax period gains are excluded and what values are used for future tax periods. Keep supporting evidence of the market value for those assets in case the FTA asks for proof.

Exempt Income & Participation Exemption (Part D)

UAE Dividends Schedule: Dividends received from companies based in UAE are not subject to corporate tax. You are also exempt from tax on dividends or gains earned from foreign company shares if you own at least 5% of the total shares of that company and keep them for 12 months or more.

• Use this UAE dividend schedule if you receive dividends from other companies that are tax residents of UAE. Dividends received from UAE based companies are not subject to corporate tax. Accordingly, such income should be excluded from taxable income.

• You must list each company that paid you a dividend. You need to enter the company’s name, its Tax Registration Number (TRN), and the amount of the dividend you received. This schedule tells the system to remove these dividend amounts from your taxable income. Download the template of the schedule, fill it correctly, and upload it in the FTA portal.

Participation Exemption Schedule: Under participation exemption, dividend income and capital income from foreign companies are exempt provided:

1. the UAE company owns =>5% of the company shares or the purchase cost of those shares is => AED 4 million.
2. ii) the UAE company has held or intends to hold those shares for a minimum of 12 months.
3. The foreign company is paying at least 9% tax in its jurisdiction.

• Fill in the Participation Exemption Schedule to claim this and click “Save and back” once completed. If the conditions are not met later, the exempt income may need to be added back to your taxable income.

• After completing these steps, click “Next Step” to proceed.

Step 8: Other Adjustments to review (Expenses Not Allowed for Tax)

When finishing your corporate tax return filing, you may need to make additional adjustments to ensure your income and expenses follow the FTA’s rules. These areas are commonly misunderstood, so it is important to review them carefully before submitting your return.

Adjustments for Non-deductible Expenditure (Part A)

Some business costs cannot be claimed as deductions for tax purposes. You must add them back to your accounting profit when calculating taxable income.

Common examples include:

• Fines and penalties that aren’t related to normal business operations.
• Personal or non-business expenses, such as entertainment or private costs.
• Certain provisions or reserves, unless they meet specific FTA requirements.

Note: Always keep records showing why these amounts were adjusted, as the FTA may ask for proof.

• Enter the relevant amounts only if they apply to your business.

Adjustments for Interest Income / Expenditure (Part B)

• Interest costs are allowed as a deduction only within certain limits. The FTA applies rules that cap how much interest can be claimed, especially for intra-group loans.
• Calculate interest according to the interest limitation formula in the FTA guide.
• Report the total interest and any disallowed portion in non-deductible expenses, interest limitation adjustments, and related-party transactions of the return and the related schedule.
• In relation to the first two questions below, please select “Yes” only if total net interest expense during the period and brought forward net interest expenditure exceeds AED 12 million, and if you wish to adjust brought forward interest expense in the current tax return.

• Complete the schedule and click on the Save and Back button which will appear on the bottom left corner of the screen.

• If your business has loans between group companies, check that the amounts and interest rates are properly documented.

Interest Capping Schedules: There is a rule that limits how much interest expense you can deduct. This is to stop companies from reducing their tax bill too much by having very high interest costs. This schedule calculates that limit. Essentially, you can only deduct interest up to a certain amount. The limit is the higher of AED 12 million or 30% of your profit before interest, tax, depreciation and amortization, also known as EBITDA. Any interest you cannot deduct this year can be carried forward for up to 10 years.

Related-Party and Connected-Person Transactions (Part C)

If your business enters into transactions with related parties or connected persons, you may need to complete these schedules. The related party schedule is for transactions with other companies in your group or under common control. You must complete related party schedule if the total value of these transactions exceeds AED 40 million during the tax period. The connected person schedule is for payments to business owners, directors, or their relatives. You must report these transactions if the total payments to any of the connected persons exceed AED 500,000 during the tax period. The goal is to ensure all these transactions are processed at fair market prices. You are required to keep transfer-pricing documentation showing that transactions were made at market value, and provide the same to the FTA when demanded.

Complete these schedules correctly by downloading the template. After completion, upload the filled-in template.

Qualifying Investment Fund Income (Part D)

If you invest in a Qualifying Investment Fund that is exempt from tax, you need to report your share of the fund’s income. But if you did not invest in a Qualifying Investment Fund, select “No”.

• Use the figures provided by the fund manager showing how your income is split between exempt income, interest, and rental income.
• Enter these allocations correctly in your UAE tax return and keep the fund’s supporting documents.

Checking these adjustments carefully ensures your corporate tax return filing is accurate and fully compliant with Federal Tax Authority (FTA) rules, reducing the risk of errors or penalties later.

Other Adjustments – Prior Period Errors & Other Adjustments (Part E)

In this section, you confirm whether there were any small prior-period tax errors (AED 10,000 or less). If yes, you must add the affected tax period and describe the adjustment. Please note if the tax impact of the prior period error was more than AED 10,000, you must file a Voluntary Disclosure to fix that error. You then state whether there are any other adjustments not covered elsewhere and, if applicable, enter amounts that either increase or decrease the taxable income. If nothing applies, you should select “No” for both questions. After completing the Adjustments, click “Next Step”.

Step 9: Final Calculation of Taxable Income and Tax Liability

When you reach the final part of your corporate tax return filing, EmaraTax automatically calculates your taxable income and tax liability based on the numbers you entered. Still, it’s important to understand how the calculation works and what adjustments may apply.

How Taxable Income Is Calculated (Part A)

The system applies the following general approach:

1. Start with accounting profit as per your financial statements.
2. Add back non-deductible expenses (e.g. disallowed entertainment, non-qualifying donations, personal expenses, expenses not related to your business, etc.).
3. Deduct exempt income and applicable reliefs (e.g. UAE dividends, participation exemption, foreign permanent establishment exemption).
4. Apply carried-forward tax losses and other available reliefs, where eligible.
5. The result is your taxable income.
6. The applicable corporate tax rate is then applied to determine your Tax Liability.

What are the Corporate Tax Rates in UAE

• 0% tax on profits up to AED 375,000
• 9% tax on the profits above AED 375,000

Different rules may apply if you are a Qualifying Free Zone Person eligible for specific exemptions or incentives.

Qualifying Free Zone Person (QFZP) Schedule: If you are claiming to be a Qualifying Free Zone Person, you are required to complete this schedule. FTA uses the information provided in this schedule to determine your eligibility for 0% Corporate Tax as a free zone company. You are required to provide below key information in this schedule:

• Detailed breakdown of your income i.e. qualifying income, non-qualifying income, and excluded activities.
• To maintain the QFZP status, the taxable person must ensure that non-qualifying revenue stays within the allowed limit i.e. the lower of 5% of total revenue or AED 5 million.
• Disclose all income earned from Qualifying Activities.
• You must confirm that your business has adequate assets, employees, and operating expenses within the Free Zone. If core activities are outsourced, then full details of the service provider must be provided.
• You must also prepare audited financial statements and maintain transfer pricing documentation.

Note: If your business earns both qualifying and non-qualifying income, you need to divide your expenses between them before filing your return. The 0% tax rate applies only to the net qualifying income after the related expenses are deducted.

Tax Losses (Part B)

If your business incurred losses in prior tax periods, these losses may be carried forward to reduce taxable income in future periods, subject to applicable UAE corporate tax rules.

• Carried-forward losses can be utilized in future tax periods, provided the FTA conditions (including continuity of ownership and business activity) are met.
• Tax losses must be recorded in the tax loss schedule in EmaraTax. The schedule allows you to report losses from previous years. It then helps you calculate how much of those old losses can be used to adjust this year’s profit. There is a limit though, you can only use losses to offset up to 75% of your current year’s taxable income. In some cases, you can even transfer losses to another company in your group.
• For tax groups, the use of losses follows special rules, as losses may be shared or offset within the group under prescribed conditions.
• If a company joins or leaves a tax group, transitional rules determine how much of its prior periods losses remain available for use in future.
• Select “No” if this does not apply to your company.
• Complete this schedule correctly, then click “Save and Back” to proceed.

Tax Credits (Part C)

You may be able to claim credits for taxes already paid elsewhere to reduce your UAE tax liability.

The most common types of tax credits are:

• Foreign Tax Credit – for corporate tax paid in another country on the same income.
• Withholding Tax Credit– for tax withheld at source by another jurisdiction.

You will need to provide proof, like a foreign tax receipt and payment of the tax. For each foreign country, you report the income you earned there and the tax you paid there. The system will then calculate the credit you can claim. The credit cannot be more than the UAE tax you would owe on that same foreign income. When you select these options in your return, EmaraTax will automatically open the Tax Credit Schedule for you to fill in. If foreign tax credits are not applicable in your case, select “No”.

Please ensure to keep proof of foreign tax paid (such as a tax receipt or assessment). The FTA will use all this information to apply a foreign tax credit and reduce your UAE tax liability by the amount of tax already paid abroad (within the allowed limits).

Step 10: Upload Supporting Documents

Review the list of required documents shown on the screen. These typically include:

• Audited Financial Statements which is mandatory if your business revenue is AED 50 million or above, you are a Qualifying Free Zone Person, or a Tax Group. You may wish to refer to our detailed guide about top 10 audit firms in Dubai and top 10 audit firms in Abu Dhabi.
• Documentation supporting the market value of qualifying immovable property at the start of the first tax period.
• Documentation supporting the market value of qualifying financial assets/liabilities at the start of the first tax period.
• Tax residency certificate from a foreign jurisdiction (if applicable).
• For each document listed, click on the option View/Add Attachment. It is for uploading the relevant file from your records.

• In a case where you are unable to provide any document, then simply click on Add/View Reason button and explain why the attachment is not available.

• Ensure that all uploaded documents are clear, complete, and properly labeled.
• Once all required attachments are uploaded (or reasons provided), proceed to the “Next Step”

Once all adjustments, losses, and credits are entered, the system will calculate your final tax due. Review the total carefully before submission to ensure all data matches your financial statements and supporting records.

Step 11: Review the Declaration and Submit the Tax Return

• Review all the completed sections carefully to ensure all the information provided in the return is accurate and according to your records.
• Verify the most important Step 1 which includes Taxpayer Details. If you find anything that is incorrect, then click Edit to go back and make corrections. You may have to amend your taxable person details to make certain changes.
• Check financial and tax figures. Ensure that accounting profit, adjustments, exempt income, and taxable income align with your financial statements and supporting schedules.
• Read the declaration statements carefully and ensure you understand them and their implications.
• After reading, mark the declaration check box and submit the tax return.

Step 12: Pay the Tax

It is the time to pay the due tax now. Make sure to pay your tax before the corporate tax return deadline. Please remember to keep all the supporting documents, including financial statements, calculations, and working papers, in case of a review or audit by FTA.

Exempt Persons

Some entities are granted exempt status and their main activities are not subject to corporate tax. These persons are not required to file a standard full corporate tax return for their exempt income. These exempt persons are as follows:

• Government controlled entities as well as Government entities
• Extractive businesses and Non-Extractive natural resource businesses (as they are typically taxed under separate emirate-level legislation)
• Qualifying public benefit entities
• Personal pension as well as social security funds
• Qualifying investment funds

However, if an exempt person conducts a business or business activity that is not eligible for exemption, such activity will be considered taxable. In that case, the person must file a full corporate tax return and pay tax on the income from that business. In addition, if an exempt person fails to fulfill the exemption conditions at any time within a tax period, the person is required to submit a full tax return for the entire period.

Common Mistakes to Avoid When Filing Corporate Tax

• Delaying Registration: Failing to register for Corporate Tax on time can result in penalties.
• No Audited Accounts: Businesses that must have audited financial statements but don’t prepare them risk non-compliance.
• Wrongly Claiming Exemptions: Listing Free Zone income as exempt when it doesn’t meet the conditions can lead to fines and corrections.
• Missing Related-party Reporting: Not disclosing transactions with related or connected persons is a common oversight.
• Paying Late: Late tax payments attract daily penalties until the full amount is paid.

Let Vertix Auditing Handle Your Corporate Tax Filing

If you want to make your UAE Corporate Tax filing simple, then contact Vertix Auditing, as we can do it all for you with maximum accuracy. We will register your business, prepare and submit your return on EmaraTax, and take care of all elections, schedules, and documents needed for compliance. Our experts understand UAE Corporate Tax rules, Free Zone benefits, Tax Group filings, Transfer Pricing requirements, and most importantly corporate tax penalties and how to avoid them. Contact Vertix Auditing today for reliable help!

FAQs

When should I file my tax return?

You must submit your Corporate Tax Return within nine months of your financial year-end. Filing within this period ensures compliance with the FTA’s deadlines and helps you avoid penalties for late submission.

Am I required to provide audited financial statements?

Yes, in most cases. Audited financial statements are required if your annual revenue is above AED 50 million or if you are a Qualifying Free Zone Person. Other taxpayers must still prepare financial statements, unless they qualify for Small Business Relief.

How do I claim a credit for taxes paid in another country?

Go to the Tax Credit Schedule in EmaraTax and upload proof of foreign tax paid (like tax receipts). The system will apply a foreign tax credit to reduce your UAE tax, if you qualify.

Are all the Free Zone businesses eligible for 0% tax rate?

No, only Free Zone entities that meet the Qualifying Free Zone Person criteria and earn eligible income up to AED 375,000 can benefit from the 0% Corporate Tax rate. You must complete the Free Zone Schedule in your return to show you meet the requirements.

What if I discover a mistake after submitting my return?

You can file a Voluntary Disclosure in EmaraTax to correct the error. It’s best to fix issues early, as repeated or major errors may lead to a review by the FTA.

Who is required to register for Corporate Tax UAE?

All businesses and individuals engaged in commercial activities in the UAE must register for Corporate Tax if they meet the eligibility criteria. This includes:

• UAE companies (mainland or Free Zone entities) that conduct business in the UAE.
• Foreign companies that earn income from the UAE or have a Permanent Establishment (PE) in the country.
• Natural persons (such as sole proprietors or freelancers) whose annual business income exceeds AED 1 million.

Even if a business has no taxable income, registration may still be mandatory to comply with Federal Tax Authority (FTA) requirements.

Are government entities exempt from Corporate Tax?

The majority of government bodies and organizations managed by the government are not subject to Corporate Tax. However, if they carry out commercial activities outside their exempt functions, they must file a Corporate Tax Return and pay tax on that income. Some reliefs, such as intragroup transfer reliefs, may not apply to them.

Changelog:

1. 26 December 2025: Added key summary points.
2. 12 January 2026: Added an internal link to UAE corporate tax penalties to help readers know the administrative penalties in detail.
3. 22 February 2026: Added additional details along with images from corporate tax filing portal to help users file their UAE corporate tax returns.

 

Last Modified: Mar 1, 2026 @ 10:44 pm