UAE Corporate Tax: A Practical Compliance Checklist

UAE Corporate Tax applies to financial years starting on or after 1 June 2023. For many smaller businesses, the obligations are manageable once they are broken into clear steps. The difficulty usually lies in missing a step, such as registering late or not keeping the records needed to support the return.

This checklist sets out the main stages most UAE companies need to work through. It is a general guide, and your own position will depend on your structure, income and activities.

Step 1: Confirm whether you are in scope

Corporate Tax generally applies to:

• Companies and other juridical persons incorporated or effectively managed in the UAE, including free zone companies
• Individuals conducting business in the UAE, where their turnover exceeds the threshold set by the authorities
• Foreign entities with a permanent establishment or certain other connections to the UAE

Some entities may be exempt, such as qualifying government entities or qualifying public benefit entities, but exemptions often have their own conditions and may still require registration.

Step 2: Register with the Federal Tax Authority

Taxable persons need to register for Corporate Tax through the FTA’s EmaraTax platform and obtain a Tax Registration Number. The FTA has published specific timeframes for registration, which depend on the date the licence was issued or when the entity was incorporated.

Late registration can attract an administrative penalty, so check your deadline as soon as your company is licensed.

Checklist:

• Trade licence and constitutional documents available
• Details of shareholders, managers and authorised signatories ready
• Financial year end confirmed
• EmaraTax account created and registration submitted

Step 3: Understand your tax period

Your tax period is normally your financial year, usually 12 months. Your first tax period may be shorter or longer depending on when the company was set up. Knowing your tax period tells you when your return will fall due.

Step 4: Know the headline rates

For a standard resident company, the main rates are:

Different rules apply to Qualifying Free Zone Persons, which may benefit from a 0% rate on qualifying income if they meet the conditions, and to large multinational groups that fall within the scope of additional rules.

Step 5: Check Small Business Relief

Small Business Relief allows eligible resident persons to be treated as having no taxable income for a tax period. Key points include:

• Revenue in the relevant tax period, and in each previous tax period, must not exceed AED 3 million
• The relief must be elected for in the Corporate Tax return; it is not automatic
• Qualifying Free Zone Persons and members of large multinational groups are excluded
• Artificially splitting a business to stay under the threshold is not permitted

Small Business Relief was originally available for tax periods ending on or before 31 December 2026. In August 2026 the Ministry of Finance announced an extension to tax periods ending on or before 31 December 2029. Businesses claiming the relief still need to register, keep records and file a return.

Step 6: Keep proper accounting records

Corporate Tax is calculated from your accounting profit, adjusted for certain items. That makes reliable bookkeeping essential.

• Maintain financial statements prepared in line with the accounting standards accepted in the UAE
• Keep invoices, contracts, bank statements and supporting documents
• Retain records for at least seven years following the end of the tax period they relate to
• Reconcile bank accounts and key balances regularly

Some businesses, depending on revenue or status, may need audited financial statements. A Qualifying Free Zone Person, for example, is expected to prepare audited accounts.

Our bookkeeping and accounting service can help keep records ready for filing.

Step 7: Prepare the tax computation

Moving from accounting profit to taxable income involves reviewing items such as:

• Expenses that are not deductible or only partly deductible, such as certain entertainment costs
• Interest expense limitations, where relevant
• Transactions with related parties and connected persons, which should follow the arm’s length principle
• Exempt income, such as certain qualifying dividends
• Available tax losses carried forward

Related party transactions may also require a disclosure form, depending on their value.

Step 8: File and pay within nine months

The Corporate Tax return, and payment of any tax due, is generally required within nine months of the end of the tax period. For a company with a 31 December year end, that usually means by 30 September of the following year.

Returns are filed through EmaraTax. Late filing and late payment can result in penalties, so plan the preparation well before the deadline.

Step 9: Review your position each year

Your Corporate Tax position can change as your business grows or restructures. Revisit it each year, particularly if:

• Revenue moves close to the Small Business Relief limit
• You start transacting with related parties abroad
• You change activities or move between free zone and mainland
• You add shareholders or group companies

Quick annual checklist

• Registration confirmed and details up to date on EmaraTax
• Tax period and filing deadline noted in your calendar
• Bookkeeping up to date and reconciled
• Financial statements prepared, and audited where required
• Small Business Relief or Qualifying Free Zone Person status assessed
• Related party transactions identified and documented
• Tax computation reviewed
• Return filed and any tax paid within nine months
• Records stored safely for at least seven years

Getting support

Corporate Tax rules include many conditions and details that this checklist cannot cover in full. Scaleon’s UAE Corporate Tax service supports registration, return preparation and ongoing reviews. Contact us to discuss your situation.