Corporate Tax Registration
Corporate Tax Registration is the process through which a business formally registers with the relevant tax authority to comply with corporate tax laws. This registration is mandatory for companies operating within a jurisdiction where corporate tax is applicable, such as the UAE, where a 9% corporate tax has been implemented on net profits exceeding the specified threshold. The process involves submitting company details, financial records, and other required documents through the official government portal. Timely registration ensures legal compliance, avoids penalties, and allows businesses to fulfill their tax obligations effectively.
| Category | Details |
|---|---|
| What is Corporate Tax (CT)? | A 9% tax on the profits of businesses operating in the UAE. |
| When did it start? | Effective for financial years starting on or after June 1, 2023. |
| Who must pay it? | Companies, freelancers with licenses, branches of foreign companies — if their net profit exceeds a threshold. |
| Threshold | Profits up to AED 375,000 are tax-free. Profits above AED 375,000 are taxed at 9%. |
| Registration | Mandatory for most businesses, even if you don't hit AED 375,000 (you just file "nil returns" if no tax due). |
| Exemptions |
- Free zone companies (qualifying income may be taxed at
0%) - Government entities - Extractive industries (oil/gas) are taxed separately - Public benefit organizations |
| Who files it? | Businesses must file their Corporate Tax return annually electronically (one filing per year). |
Important Terms
- Accounting profits (after allowable expenses) are considered, not just revenue.
- Small Business Relief If your turnover is under AED 3 million in previous or current tax periods (until 2026), you might qualify for relief and pay 0% temporarily.
- Transfer Pricing rules apply if you deal with related companies inside or outside UAE (even small businesses must document it now).
Corporate Tax Rate Table (simple)
| Profit Range | Tax Rate |
|---|---|
| 0–375,000 AED | 0% |
| Above 375,000 AED | 9% |
Penalties (important!)
Failure to register
AED 10,000 fine.
Late filing
AED 500/month + extra fines.
Incorrect returns
Heavy penalties based on % of unpaid tax.
Quick extra tips
- Even freelancers with a freelance license must register (even if no tax to pay).
- Free zone companies get 0% tax only if they don't sell to UAE mainland clients (special conditions apply).
- Offshore companies (RAK ICC, JAFZA Offshore) — case-specific, often exempt but must check.