How to File UAE Corporate Tax in 2025: A Simple Step-by-Step Guide

As the corporate tax structure in the UAE is implemented, companies across the Emirates are adjusting to a new financial era of accountability. Whether you're a startup in a free zone or a large multinational operating in the UAE, it's essential to understand your corporate tax obligations. This guide simplifies the entire 2025 corporate tax filing process in a step-by-step, clear, and accurate manner.

Corporate Taxation System of UAE (2025 Update)

By 2025, the UAE has established its corporate taxation regime in line with the best practices and OECD conventions around the world. The Federal Tax Authority (FTA) administers the system, which came into effect for financial years starting on or after June 1, 2023.

Key Highlights:

• Standard Corporate Tax Rate: 9% on taxable income exceeding AED 375,000.
• Applicability: All UAE-resident juridical persons (mainland and free zone companies), and non-resident entities with a UAE nexus.
• Small Business Relief: Available for businesses with revenue below AED 3 million (valid until the end of 2026).
• Free Zone Entities: Qualify for 0% on qualifying income, subject to meeting specific conditions. 

Recent FTA updates have clarified aspects like group relief, exempt income (e.g., dividends from UAE companies), and transfer pricing compliance, making it more important than ever to stay informed.

Who Needs to File Corporate Tax in the UAE?

Most business entities in the UAE are required to undergo corporate tax filing. This includes:

Entities Required to File:

• Mainland Companies
• Free Zone Companies (including those enjoying 0% tax but needing to file nil returns)
• Foreign Companies with a permanent establishment or income sourced in the UAE

The Exemptions Apply To:

• Government entities
• Entities controlled by the government (if notified)
• Qualifying public benefit entities
• Pension or investment funds (subject to approval)

Please note that exempt entities may also be required to register and file in some circumstances.

Corporate Tax Registration Process

When it comes to the FTA, every taxable person has to be registered via the EmaraTax. Registration will keep you on the right side of the law and prepared for tax filing.

The Registration Procedure:

• Visit EmaraTax
• Register or log in.
• Fill in the registration form and upload the required documents.
• Receive your Corporate Tax Registration Number (TRN) upon approval.

Documents Required:

• Trade license
• Emirates ID and passport of the authorized signatory
• MOA/AOA (Memorandum or Articles of Association)
• Financial information (first financial year, etc.)

Deadline:

The FTA has marked a staggered registration deadline schedule on the basis of license issuance date. Verify your deadline date through the FTA portal.

Documents and Information Required for Filing

Preparing ahead can prevent the last-minute issues. Here's what you'll need:

Corporate Tax Filing Check-list:

• Audited or management financial statements
• TRN (Tax Registration Number)
• Information about your corporate structure
• Data on income and allowable deductible expenses
• Documentation related to exempt income (if applicable)
• Transfer pricing documentation (for related-party transactions)

How to Calculate Taxable Income

Understanding how to determine your tax obligation can lead to a fairly accurate filing.

Formula:

Taxable Income = Total Revenue - Allowable Deductions

Common Allowable Deductions

• Expenses incurred in conducting business
• Remuneration in salary and benefits to own employees
• Rent and utilities
• Depreciation (in accordance with accepted standards of accounting)

Non-Deductible Items:

• Personal expenses
• Penalties/Fines
• Dividends; distributions of profits 

Exempt Income:

• Dividends from UAE resident companies
• Income arising from foreign permanent establishment (on specified conditions). 
• Qualifying intra-group transactions.

Tax Filing Procedure: Step-by-Step

Once you're registered and have all the necessary documents ready, you can follow these steps to file your corporate tax return through EmaraTax:

EmaraTax Filing Procedure:

1. Sign in to your EmaraTax account.
2. Click on "Corporate Tax Return" on your dashboard.
3. Fill in the tax return form with accurate financial information.
4. Upload supporting documents (e.g., financial statements, audit reports).
5. Review the form carefully to ensure all information is correct.
6. Submit the return and wait for confirmation from the system.

Please note that corporate tax returns must be filed within 9 months after the end of your financial year. Tax payments are also due on the same date.

Deadlines and Penalties

If you fail to comply with tax deadlines, you could be subjected to fines, not to mention the irreparable damage to your reputation. So, staying ahead of obligations is paramount.

Filing Deadline: Tax and return submission must be completed within 9 months from the end of your financial year.

Key Penalties:

• Late Filing: AED 500 per month (increases over time)
• Failure to Register: AED 10,000
• Incorrect Information: Up to 200% of the tax difference

Always refer to the latest FTA announcements to confirm specific deadlines and penalty rules.

Best Practices for Smooth Corporate Tax Filing

Here are time-tested practices that help avoid compliance errors.

• Maintain accurate, up-to-date accounting records.
• Use accounting software that supports UAE tax compliance.
• Conduct quarterly financial performance reviews to stay on track.
• Consult a qualified tax advisor, especially for complex or multinational structures.
• Stay updated with FTA changes and clarifications by regularly checking their official website.

Ensuring Compliance with UAE Corporate Tax 

Corporate tax is now an essential part of doing business in the UAE. Whether you're a solo entrepreneur or a large corporate group, being proactive about registration, documentation, and filing processes will ensure compliance and avoid penalties.

Start early, stay organized, and when in doubt, consult a tax expert. The FTA has made compliance achievable with digital platforms like EmaraTax, but the responsibility rests with the businesses. Need help with tax filing? Consult AuditFirmsae or visit the FTA’s official website for guidance and resources.

Read To Know More: Top Audit Practices Every Business Should Know in 2025