According to Article 11 of the UAE Corporate Tax Law, taxpayers in the UAE are:
- companies incorporated in the UAE (including Free Zone and offshore companies);
- foreign companies managed and controlled from the UAE;
- foreign companies with a permanent establishment in the UAE;
- individuals doing business in the UAE;
- non-residents of the UAE receiving income from sources in the UAE;
- non-residents of the UAE having nexus in the UAE (receiving income from real estate in the UAE).
Does your company have to register for corporate tax in the UAE?
According to Article 51 of the UAE Corporate Tax Law, registration with the UAE Tax Authority and obtaining a tax registration number is required for all taxpayers except:
- government entities;
- state-owned enterprises (UAE);
- companies engaged in the extraction of UAE natural resources and related non-resource activities (with some exceptions);
- non-residents of the UAE who receive income from UAE sources and do not have a permanent establishment in the UAE
Therefore, if you have:
- a company incorporated in the UAE (not included in the exceptions listed above), or
- a foreign company that is operated from the UAE, or has a permanent establishment in the UAE, or derives income from real estate in the UAE, or
- a business in the UAE that you run as an individual
IT IS OBLIGATORY to register for corporate tax in the UAE.
When do I need to register for corporate tax purposes?
For companies incorporated before 01.03.2024 the deadline for applying for corporate tax registration depends on the month of license issuance (irrespective of the year of issuance).
| Date of license issuance regardless of the year of issuance | Deadline for submitting an application for tax registration |
|---|---|
| January 1 – January 31 | May 31, 2024 |
| February 1 – February 28/29 | May 31, 2024 |
| March 1 – March 31 | June 30, 2024 |
| April 1 – April 30 | June 30, 2024 |
| May 1 – May 31 | July 31, 2024 |
| June 1 – June 30 | August 31, 2024 |
| July 1 – July 31 | September 30, 2024 |
| August 1 – August 31 | October 31, 2024 |
| September 1 – September 30 | October 31, 2024 |
| October 1 – October 31 | November 30, 2024 |
| November 1 – November 30 | November 30, 2024 |
| December 1 – December 31 | December 31, 2024 |
| If a person does not have a license at the time this Decision becomes effective | 3 months from the date this Decision becomes effective |
It is important to note that there are other deadlines for certain categories of persons, namely:
- for UAE resident legal entities incorporated after 01.03.2024:
– if the company is incorporated in the UAE, 3 months from the date of incorporation;
– if the company is incorporated in a foreign jurisdiction, 3 months after the end of the fiscal year; - for non-resident legal entities with a permanent establishment or “connection” in the UAE (see Article 4 of Decision No. 3);
- for UAE resident individuals conducting business activities: until March 31 of the following calendar year; if the turnover exceeds AED 1 million during 2024, then until 31.03.2025;
- for non-resident UAE individuals conducting business activities: no later than 3 months from the date on which the individual is subject to income tax if the turnover exceeds AED 1 million.
Obligations
Tax registration implies certain obligations of a taxpayer, including the timely submission of tax returns, etc. Timely and proper fulfillment of the taxpayer’s obligations is impossible in the absence of tax registration.
The penalty for late registration for corporate income tax purposes is AED 10,000 (USD 2,725).
Do I need to register an offshore company?
It is possible to register so-called offshore companies in the UAE in Free Zones such as RAK International Corporate Center, Jebel Ali Free Zone or Ajman Free Zone. Such companies are authorized to operate exclusively outside the UAE and cannot obtain a business license in the UAE.
The UAE Tax Authority has issued an official ruling regarding the status of offshore companies in the UAE in relation to corporate tax: they are considered residents and are also subject to the obligation to register for corporate tax.
Our experts recommend not delaying the tax registration of companies to avoid penalties.
Register for corporate tax in the UAE
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Frequently Asked Questions
All companies incorporated in the UAE — including free zone and offshore companies — foreign companies managed from the UAE or with a permanent establishment or real estate income here, and individuals whose business turnover exceeds AED 1 million a year.
A new UAE company must register within 3 months of incorporation. Individuals in business must register by 31 March of the year after their turnover exceeded AED 1 million.
AED 10,000. The FTA waives it automatically if the first Corporate Tax return is filed within 7 months after the end of the first tax period.
Yes. Offshore companies are UAE tax residents, and having no revenue does not remove the obligation to register and file a return.
0% on taxable income up to AED 375,000 and 9% above it. Qualifying Free Zone Persons pay 0% on qualifying income. Registration does not mean you will pay tax — it is required even if your liability is zero.
Usually a few days, but the FTA can take up to 20 business days if it requests more information.
Depends on the type of company. We check whether registration is required, prepare the documents, obtain the TRN and set up your EmaraTax profile.
