Understanding Corporate Tax in the UAE (2025 Update)

How to Register and File Corporate Tax in Dubai?

Thinking of launching a venture in the UAE and wondering about corporate tax in Dubai? Operating a firm there requires keeping up to date about Dubai business taxes. Since 2023, the UAE has implemented a federal corporate tax that covers mainland entities and some free-zone firms. Learning about corporate tax in Dubai, its mechanics, and which duties constitute business taxes is now crucial.

We'll explain the corporate tax in Dubai, its rules, and what every business owner needs to know.

Understanding Dubai Business Taxes

Corporate tax is a tax on company profits. In Dubai and across the UAE, it applies to most businesses that are incorporated, managed, or operating in the country. Foreign companies that have a branch or permanent setup in Dubai are also covered. Whether you run a startup, a growing small business, or a multinational company, you will likely need to register and file corporate tax returns.

Some entities are exempt, such as government bodies, natural resource businesses, and charities. But for most regular companies, paying corporation tax in Dubai has become a standard part of doing business and is now one of the key Dubai business taxes that companies must comply with.

Companies operating under Dubai free zone corporate tax rules must also meet certain conditions to be entitled to exemptions from tax. To meet the deadline for filing their corporate tax liability with the UAE, businesses must register with the Federal Tax Authority (FTA), keep accurate records of financial accounts, submit a correct tax return, and calculate the taxable profit after taking any reliefs into account, such as the 0% rate on the first AED 375,000* of taxable profits.

Steps to File a Corporate Tax in Dubai

Below are the steps to file a corporate tax in Dubai.

Step 1: Corporate Tax Registration

Before filing corporate tax in Dubai, your business must be registered with the Federal Tax Authority (FTA). Once registered, you’ll receive a Tax Registration Number (TRN), which is needed to access the system and submit your return.

Step 2: Make an Account on FTA Portal

Go to the FTA’s online e-Services portal and create your business account. From there, select the corporate tax section to begin the filing process. Dhanguard will assist you with everything from login to registration.

Step 3: Maintain Financial Records

Be accurate and maintain updated records of your finances, including your audits, income, and expense details. You will use these records to obtain an accurate calculation of your taxed income if the FTA verifies during audits.

Step 4: Complete the Tax Return Form

Fill out the online tax return form with all of your income, expenses, and changes. Be sure to double-check the figures you input against your official company accounts. Any mistakes or discrepancies could delay your tax return process or lead to penalties later.

Step 5: Review and Submit the Return

Before submitting, review all information about the return to ensure there are no mistakes. After you confirm that everything is correct, submit your corporate tax return online through the FTA portal before the deadline.

Step 6: Pay the Tax Due

If the return determines tax is due, ensure you pay the tax amount through FTA-accepted means, which can include e-Dirham, bank transfer, or credit card. Timely payment avoids penalties for late payment plus interest, which can lead to increased amounts owed.

Step 7: Keep Records for Seven Years

Businesses are required to keep seven years of tax and financial records. The FTA may ask for these records during audits. Therefore, it’s best to properly store them, whether in files or digitally.

Dhanguard will help you in Dubai corporate tax rate guidance and filing corporate tax.

Requirements for Filing Corporate Tax in Dubai

When filing your corporate tax in Dubai, you’ll need to provide documents such as:

• A valid trade license
• Emirates ID copies of all owners, partners, or shareholders
• Passport copies of all owners, partners, or shareholders
• Memorandum of Association (MOA), if required
• Company financial statements
• Proof of expenses (receipts, invoices, and other related documents)
• Calculations of taxable income
• Details of depreciation and amortization
• Loan agreements or related documents (if any)
• Records of income that is exempt from tax (if any)

Liability for Filing Late Dubai Corporate Tax Rate

If you miss the deadline for filing your corporate tax return, you’ll be charged a fee of AED 500* for every month of delay during the first year. After 12 months, this fee increases to AED 1,000* per month. While the Federal Tax Authority (FTA) can sometimes reduce or waive these charges in special cases, it’s always best to file on time to avoid extra costs.

Deadlines for Corporate Tax Return Filing in UAE

In the UAE, companies have up to 9 months after the end of their tax period to file their corporate tax return. This rule applies to both local (resident) and foreign (non-resident) businesses. Since the UAE uses a self-assessment system, businesses are responsible for calculating, reporting, and paying their own taxes correctly and paying their own Dubai business taxes correctly.

For example, if your financial year ends on December 31, 2025, your filing deadline will be September 30, 2026.

Register Corporate Tax in UAE With Dhanguard

In short, corporate tax in Dubai has become an essential part of running a business. Whether you are a small company or a multinational, knowing the Dubai corporate tax rate and filing on time is essential. By registering with the Federal Tax Authority, keeping accurate financial records, and submitting your return before the deadline, you can stay fully compliant and avoid extra costs. With the proper guidance, managing corporate tax in Dubai becomes much easier, allowing you to focus on growing your business with confidence.

Connect with Dhanguard; we will help you register your corporate tax in Dubai.