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Co-Founder & CEO movingo
Editor
Author
Iakov Kukushkin
Copywriter, Journalist
Nov 14, 2025
Businesses in the UAE are required by law to file Corporate Tax returns, even if they do not have to pay tax. This topic has many nuances, which we will discuss in this article. You will learn when and how to file your returns, as well as how to avoid mistakes.
- Overview of Corporate Tax in the UAE
- Corporate Tax rates and exemptions in UAE (2025)
- Who needs to file Corporate Tax in the UAE?
- Step-by-step guide: how to file Corporate Tax in UAE
- Avoid these common mistakes when filing Corporate Tax in the UAE
- Consider the following key financial elements when preparing CT returns for filing
- Here are some tips on how to reduce your Corporate Tax liability in the UAE
- Corporate Tax penalties and how to avoid them
- Our experts can help you file your UAE Corporate Tax
- Corporate Tax filing FAQ
Overview of Corporate Tax in the UAE
The UAE imposes a federal Corporate Tax on businesses' net profits. Introduced by Federal Decree-Law 47 in 2022, it officially went into effect on June 1, 2023.
- It applies to business profits, not personal income or salary.
- It promotes transparency, which helps attract international investors.
The BEPS principles are intended to prevent multinational corporations from dodging or reducing their taxes by exploiting loopholes and discrepancies in tax laws.
We have compiled a detailed guide to Corporate Tax in the UAE. The key points are listed below.
Corporate Tax rates and exemptions in UAE (2025)
Key exemptions:
- Dividends and capital gains from qualifying shareholdings
- Intra-group transactions (if conditions are met)
- Income from foreign Permanent Establishment (PE) (optional exemption)
- Intellectual property (IP) profit, also known as an IP Box, has a 0% tax rate if it meets certain conditions.
Calculating your taxes correctly is super important in the UAE, because it affects how much you pay and can even lead to penalties if you make mistakes. That's why you need a professional accounting firm like us, who know the UAE market like the back of their hand. We can help you get it right.
Who needs to file Corporate Tax in the UAE?
All businesses operating in the UAE must determine their tax residency and liability status:
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✅ Mainland companies
All entities registered in the UAE that engage in commercial activities. -
✅ Free Zone companies
Entities that don’t qualify for exemption or fail to meet the “Qualifying Free Zone Person” (QFZP) criteria. -
✅ Foreign entities
Only if they have a PE in the UAE or earn UAE-sourced income. -
✅ Natural persons (ex. Freelancers)
If their annual business income exceeds AED 1 million.
Exemptions
- Government and government-controlled entities
- Extractive and non-extractive natural resource businesses
- Approved charitable and public benefit organizations
- Businesses with an annual taxable profit of less than AED 375,000.
- Small and medium enterprises with revenues below AED 3,000,000 can use the Small Business Relief.
Small businesses in the UAE may benefit from tax reductions or even exemptions if they manage their finances carefully. Small Business Relief and other benefits are available only if you have a solid basis that can be presented to the tax authorities. It is important to maintain financial controls and keep cash flow records for as long as possible.
Step-by-step guide: how to file Corporate Tax in UAE
- Register for Corporate Tax
All taxable entities must register through the EmaraTax portal (Federal Tax Authority platform) and obtain a Tax Registration Number (TRN). - Maintain proper accounting records
Make sure your financial statements align with FTA and IFRS standards. Messing up or leaving out details could result in serious fines. - Determine your taxable income
The taxable income is equal to the accounting profit (as shown in the financial statements) minus any adjustments required by CT law. - Calculate tax payable
Apply the appropriate corporate tax rate (see below) to your taxable income. - File the Corporate Tax return
Submit your tax return via EmaraTax within 9 months after the end of your financial year. - Pay the due amount
Shortcut
1
Contact movingo
We will review your case and determine a list of tasks to start with.
We will review your case and determine a list of tasks to start with.
2
We will prepare and finish all the necessary paperwork
Depending on the jurisdiction, we will review your finances, complete the necessary forms, and prepare the required reports. We will also help you pay all fees.
Depending on the jurisdiction, we will review your finances, complete the necessary forms, and prepare the required reports. We will also help you pay all fees.
3
You will receive your Influencer License
No headaches — just smooth sailing.
No headaches — just smooth sailing.
Avoid these common mistakes when filing Corporate Tax in the UAE
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Missed the filing deadline (9 months after the fiscal year end)
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Incorrect categorization of income from Free Zone or Mainland activities
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Not keeping up with the paperwork for 7 years
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Not matching up accounting profits with tax adjustments
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Failure to comply with related-party disclosure requirements
“
One of our clients in the IT industry didn't keep track of their transactions when they were just starting out. A couple of years later, their startup had grown, and it was time for an audit. They needed records from the beginning, but since they didn't have them, they got fined. So it's super important to keep good records of your finances from day one.
Consider the following key financial elements when preparing CT returns for filing
- Depreciation and amortization — Verify adjustments align with CT law limits.
- Transfer pricing documentation — Must comply with OECD standards for related-party transactions.
- Tax group elections — If you are part of a group, confirm your eligibility for a consolidated filing.
- Loss carryforwards — Only 75% of taxable income can be offset per year, so make sure you're tracking it correctly.
- Foreign tax credits — Apply correctly to avoid being taxed twice.
Sounds complicated? Follow the link below to find people who can help you figure it out, or who can take care of it for you, so that you won't have to worry about it.
Here are some tips on how to reduce your Corporate Tax liability in the UAE
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💡 Optimize your structure
Restructure to qualify as a QFZP wherever possible. -
💡 Leverage deductions
Claim allowable expenses. These include rent, salaries, and marketing costs. -
💡 Plan capital investments
Use accelerated depreciation where permitted.
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💡 Transfer pricing planning
Ensure arm’s length pricing to prevent penalties. -
💡 Utilize tax groups
Consolidate profits and losses across related entities.
We have created a detailed guide with even more tips and tricks. If you want to learn more, feel free to explore it.
Corporate Tax penalties and how to avoid them
Depending on the violation, penalties can reach AED 10,000–50,000 or more. Avoid them by:
- Filing on time
- Keeping compliant records for 7 years
- Ensure that financial statements are audited when necessary.
- Accurately disclosing related-party transactions
- Pay your tax dues before the deadline
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The most common penalties
- AED 10,000 fine for missing the CT registration deadline.
- AED 10,000–20,000 for failure to maintain required accounting records.
- AED 20,000 if you not provide the required documents during a tax audit.
- AED 1,000—5,000 for failure to report tax record changes (for each case).
Our experts can help you file your UAE Corporate Tax
At movingo, we simplify the entire Corporate Tax process for you. Our team of UAE-based tax and incorporation experts make sure:
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You are registered on EmaraTax
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Prepare compliant financial statements
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We will help you meet your deadlines and ensure that everything is submitted on time
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Minimize your liability through strategic tax planning
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Full guidance on QFZP qualification and structuring
Why don't we have a quick сall and see how we can help?
Corporate Tax filing FAQ
It depends on your type of business and residency. Usually, it happens at the end of a financial year or a few months after incorporation.
Yes, all taxable businesses, including those in Free Zones, must file Corporate Tax returns, even if no tax is owed.
Corporate Tax return is filed once per financial year
You can file online through the EmaraTax portal, or just text us 😉
Government entities, approved charities, pension funds, and qualifying natural resource businesses are included. It also includes businesses with income less than AED 375,000.
Failure to file can result in financial penalties, a possible license suspension, and an FTA investigation.
The payment is made through the EmaraTax portal or approved UAE Central Bank payment channels.
Yes, in theory, but it's complicated and can lead to serious problems and fines if reports are filled out incorrectly.
You will need audited financial statements, a trade license, a TRN certificate, and supporting financial records.
With other accounting options, it costs from AED 500 per month. Separately — AED 800.
Yes, all Free Zone companies have to file returns, even if they're eligible for 0% taxes under the QFZP status.
Penalties for late submission typically start at AED 10,000 and increase for continued non-compliance.
You can use EmaraTax to submit a voluntary disclosure, which can help you correct mistakes and reduce potential penalties.
