Corporate Tax · United Arab EmiratesYour Corporate Tax return is due 9 months after your year end. Most of the work is in the choices made before it.
We compute taxable income, decide which reliefs and elections apply, prepare the transfer pricing disclosures and file the Corporate Tax return on EmaraTax.
Tax
At a glance
- Authorities
- Federal Tax Authority (FTA) · Ministry of Finance (MoF)
- Forms & references
- Corporate Tax return (EmaraTax)Transfer pricing disclosure formSmall Business Relief election
- Filed with
- FTA, through EmaraTax
- Rates
- 0% up to AED 375,000; 9% above (at the time of writing)
- Deadline
- Return and payment within 9 months of the period end
- Small Business Relief
- Revenue up to AED 3 million; periods ending by 31 Dec 2029
Overview
What it is, and why it matters.
UAE Corporate Tax applies to financial years starting on or after 1 June 2023. Taxable income up to AED 375,000 is taxed at 0% and the rest at 9%, at the time of writing. The return and payment are due within 9 months of the end of the tax period, so a 31 December 2025 year end was due by 30 September 2026.
Taxable income starts from the accounting profit, then adjusts for exempt income such as qualifying dividends, costs that are only partly deductible such as client entertainment, the interest limitation rule and tax losses, which can offset up to 75% of taxable income in a later year.
Two reliefs change the answer for many smaller and free zone businesses. Small Business Relief lets resident businesses with revenue of AED 3 million or less elect to be treated as having no taxable income, for periods ending on or before 31 December 2029 under Ministerial Decision No. 131 of 2026. A Qualifying Free Zone Person pays 0% on qualifying income, but only while it meets every condition.
Transactions with related parties and connected persons must be at arm’s length, and above set thresholds they are reported on a transfer pricing disclosure form with the return. Under Ministerial Decision No. 84 of 2025, businesses with revenue above AED 50 million, Qualifying Free Zone Persons and tax groups must also have audited financial statements.
Who needs it
Who typically needs it.
- 01
Mainland SMEs
Owner-managed companies filing their first or second Corporate Tax return and wanting the computation done properly.
- 02
Free zone companies claiming 0%
Companies that need to show they meet every Qualifying Free Zone Person condition, with the audit to match.
- 03
Small businesses using Small Business Relief
Companies and sole establishments with revenue under AED 3 million deciding whether to elect the relief each year.
- 04
Subsidiaries of foreign groups
UAE companies paying management fees, royalties or interest to a parent, with transfer pricing disclosures to complete.
- 05
Individuals in business above AED 1 million
Sole establishment owners and freelancers whose business turnover brings them into Corporate Tax.
When you need it
The moments that usually trigger it.
- Your financial year has ended and the 9-month deadline is running.
- You want to claim Small Business Relief and aren’t sure your revenue qualifies.
- Your free zone company is claiming 0% and needs to show it meets every condition.
- Your company pays management fees, royalties or loans to or from a parent or sister company.
- Your revenue has passed AED 50 million, or you’re claiming QFZP status, and you need audited accounts before filing.
- The FTA has asked for information about a return already filed.
Scope
Exactly what we handle.
Our engagement letter lists these specifically, so you know what is included before any work begins.
- 01
Computing taxable income from the financial statements, with each adjustment documented.
- 02
Testing Small Business Relief eligibility and modelling whether electing it beats carrying losses forward.
- 03
Reviewing Qualifying Free Zone Person conditions: qualifying activities and income, substance, the de minimis limit and the audit.
- 04
Applying exemptions and reliefs such as the participation exemption, and qualifying group or restructuring relief where relevant.
- 05
Identifying related-party and connected-person transactions, preparing the transfer pricing disclosure form and flagging when a master file and local file are required.
- 06
Coordinating with your registered auditor so audited statements are ready in time.
- 07
Preparing and filing the Corporate Tax return on EmaraTax and arranging payment.
- 08
Voluntary disclosures and replies to FTA queries on returns we file.
The process
How it runs, step by step.
Timings depend on the authority and on how quickly documents come together. We tell you what’s typical for your case at the start.
Start with a conversationYear-end scoping
We agree the tax period, the reliefs likely to apply, whether an audit is needed and a timetable working back from the deadline.
Financial statements
The statements are finalised, and audited where required. The computation can’t be finished until they are.
Tax computation
We adjust the accounting profit for exempt income, disallowed costs, interest limits, reliefs and losses, and prepare any transfer pricing disclosures.
Review and approve
We explain the result, the elections made and the tax payable. Nothing is filed without your sign-off.
File, pay and keep records
We file on EmaraTax, confirm payment and keep the working papers for the 7-year retention period.
What we’ll need
The information to have ready.
A typical checklist. After the first conversation we send a version specific to your situation, so you don’t gather anything you don’t need.
Financial
- Financial statements for the period, audited where required
- Trial balance and fixed asset register
- Details of loans, interest, dividends received and dividends paid
- VAT returns for the period
Related parties
- A group structure chart
- Intercompany agreements and amounts by category
- Payments and benefits to owners, directors and their relatives
Free zone companies
- Licence and licensed activities
- Revenue split by activity and by type of customer
- Evidence of substance: staff, premises and where decisions are made
Registration and history
- Corporate Tax registration details
- Previous returns and tax losses carried forward
Please don’t email passports or bank statements. Once we’ve spoken, you’ll get access to a secure upload.
Common mistakes
Where this usually goes wrong.
The problems we are most often asked to fix, and what they tend to cost.
- Mistake 01
Assuming 0% because you’re in a free zone
Only a Qualifying Free Zone Person gets 0%, and only on qualifying income. Missing a condition, such as the audit or the de minimis limit, means 9% for that year and the next four.
- Mistake 02
Forgetting that Small Business Relief is an election
The relief has to be claimed in a filed return. In a year it is elected, tax losses can’t be carried forward, so electing isn’t always the right answer.
- Mistake 03
Leaving the audit too late
Where audited statements are required, the return depends on them. An audit started in month 8 puts the 9-month deadline at risk.
- Mistake 04
Ignoring payments to owners
Salaries, fees and benefits paid to owners and their relatives are connected-person transactions and must reflect market value to be deductible.
Worth knowing
The limits, stated upfront.
We are not your auditor. Where audited statements are required, the opinion must come from an independent registered auditor, and we coordinate with them.
Transfer pricing master files and local files, and the domestic minimum top-up tax for large multinational groups, are scoped separately.
The FTA can review returns for several years after filing and decides whether to accept a position. We can’t guarantee its view.
Tax at home on UAE profits, for example in Pakistan, the UK or the US, needs separate advice.
Questions
Corporate Tax: frequently asked.
If yours isn’t here, ask us directly. We’ll answer in plain terms.
Ask a questionDo I pay Corporate Tax in a free zone?
Possibly not on all your income, but you still register and file a return. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on other income, provided it meets every condition, including substance, audited accounts and the de minimis limit.
Do I need to file if my profit is below AED 375,000?
Yes. Every registered business files a return. Income within the AED 375,000 band is taxed at 0%, so the return may show nothing to pay.
What is Small Business Relief, and do I qualify?
It lets a resident business treat itself as having no taxable income for a period, if revenue in that period and every earlier one was AED 3 million or less. It runs to periods ending on or before 31 December 2029, and isn’t available to Qualifying Free Zone Persons or members of large multinational groups.
Does my company need audited financial statements?
For Corporate Tax, yes if revenue is above AED 50 million, if you claim Qualifying Free Zone Person status, or if you are in a tax group. Your free zone authority, bank or shareholders may require an audit anyway.
When do I need a transfer pricing disclosure form?
When your transactions with related parties pass the FTA’s thresholds (AED 40 million in total at the time of writing), or payments to connected persons do. Every related-party transaction still has to be at arm’s length, whether or not the form is needed.
Are dividends my company receives taxable?
Dividends from UAE companies are exempt. Foreign dividends can be exempt under the participation exemption, broadly where you hold at least 5% for 12 months and the payer is taxed at 9% or more abroad, subject to further conditions.
Can tax losses be carried forward?
Yes, and they can offset up to 75% of taxable income in later years, subject to ownership and business continuity rules. Losses from a year in which Small Business Relief was elected can’t be carried forward.
Related
Often needed alongside this.
The equivalent in our other countries
Speak with a consultant
Talk to us about corporate Tax.
Pick the closest match and we’ll take it from there. You’ll get a written scope and fee before any work begins.
Or use our three-step guide, or email hello@fiscorra.com