Corporate Tax Registration in UAE Explained
Corporate Tax Registration in UAE Explained
The UAE introduced a federal Corporate Tax (CT) regime effective from June 1, 2023, marking a significant shift in the country's tax landscape. For businesses operating in the UAE, understanding corporate tax registration is now a legal requirement.
What Is Corporate Tax in UAE?
Corporate Tax is a direct tax levied on the net profits of businesses. In the UAE, the standard corporate tax rate is 9% on taxable income exceeding AED 375,000. Income below this threshold is taxed at 0%, providing relief for small businesses and startups.
Who Needs to Register?
All juridical persons incorporated in the UAE — including mainland companies, free zone entities, and foreign companies with a permanent establishment in the UAE — are required to register for corporate tax. Even if your business earns below the taxable threshold, registration is still mandatory.
Individuals conducting business activities that require a commercial license are also subject to corporate tax.
Exemptions
Certain entities are exempt from corporate tax, including:
- UAE government entities
- Qualifying public benefit organizations
- Pension funds and investment funds (subject to conditions)
- Businesses engaged in the extraction of UAE natural resources
Free zone businesses may qualify for a 0% tax rate on qualifying income, provided they meet the conditions of a Qualifying Free Zone Person (QFZP).
How to Register for Corporate Tax
Step 1: Access the EmaraTax Portal Registration is done through the Federal Tax Authority's (FTA) EmaraTax platform at emaratax.gov.ae.
Step 2: Create or Log Into Your Account If you already have a VAT account with the FTA, you can use the same credentials. New users must register on the portal first.
Step 3: Complete the Corporate Tax Registration Form Fill in details about your business, including legal name, trade license number, business activities, financial year, and shareholder information.
Step 4: Submit and Receive Your TRN Once submitted and approved, you will receive a Tax Registration Number (TRN) specific to corporate tax.
Key Deadlines
Registration deadlines are based on your company's license issuance date. Penalties for late registration can reach AED 10,000, so it is important to act promptly.
How IITDesk Can Help
IITDesk's team of business compliance experts can handle your corporate tax registration from start to finish. We ensure all information is accurately submitted and that your business meets FTA requirements without delay.
Reach out to IITDesk today to schedule a consultation.