Who must register for UAE Corporate Tax in 2025?

Starting from June 1, 2023, all businesses operating in the UAE must pay Corporate Tax on their profits.

• The standard tax rate is 9% on profits above AED 375,000.
• Profits under AED 375,000 are taxed at 0%, providing support for small businesses.

This tax applies across all Emirates. For comprehensive information, we have created a detailed overview of the law covering everything you need to know about doing business in the UAE.

Yes, you may be exempt from CT in these cases:

• If your company has an annual taxable profit of less than AED 375,000.
• If you are a small or medium business with an annual turnover of less than AED 3,000,000 and meet specific criteria, you can apply for Small Business Relief (see below).
• If you are a government-controlled entity.
• If your company extracts natural resources (oil, gas).
• If you are a public or private pension fund, investment fund, or charity approved by the UAE government.
• If you are a Free Zone company that qualifies as a Qualified Free Zone Person (QFZP).

If your annual revenue is less than AED 3 million, you can apply for Small Business Relief until the end of 2026. This allows you to be treated as having 0% taxable income even if your profit exceeds AED 375,000.

However, you still must:

• Register for Corporate Tax.
• Use the tax return process to apply for relief.
• Maintain proper accounting records.

The Federal Tax Authority (FTA) sets deadlines based on your business type, trade license, and registration status.

Resident juridical persons deadlines (aka UAE-based companies)
All businesses, both foreign and local, must register for CT by the end of 2024. New businesses have 3 months from incorporation to register.
If you incorporated in May 2025, you must register by August 2025.

Non-resident juridical persons (aka foreign companies)
Foreign companies need to register for CT only if they have a physical presence in the UAE. Their registration deadline is within 9 months from becoming subject to corporate income tax.

Natural persons deadlines (aka freelancers and entrepreneurs)

• For natural persons, register by March 31 of the following calendar year.
• Non-resident natural persons must register within 3 months of becoming subject to tax.
• The UAE enforces strict penalties for non-compliance with CT registration rules:

It definitely makes sense, because:

• You'll know if your business owes taxes or not (probably yes).
• Know if you can qualify for exemptions or Free Zone relief.
• You can avoid incorrect enrollment or missed benefits.
• This step saves time, prevents fines, and ensures you're fully compliant.

To sign up for CT, you need to take 3 simple steps:

Companies in the Free Zone can pay 0% Corporate Tax if they meet certain conditions.

• You must register your company with a Free Zone and have a strong in-country presence (e.g. office, employees).
• Your company should engage in qualifying activities as defined by the CT law.
• Your company should comply with UAE transfer pricing rules.
• You still need to register and it's a good idea to get some expert advice on how to set up your Free Zone business properly.

Here are some tips to help you comply with UAE CT law:

• Assess your business structure: income sources, license type, and Free Zone status.
• Register before the deadline to avoid penalties.
• Maintain comprehensive records, including financial statements, invoices, and bank transactions.
• Know your tax obligations, including filing deadlines, available reliefs, and potential penalties.

Whether you're new to UAE taxation or simply want to ensure compliance while saving time and resources, we're here to help. Our team can handle your paperwork, manage tax filings, and ensure you meet all deadlines — letting you focus on what matters most: growing your business.