Insights · UAE Tax
UAE Corporate Tax in 2026: Registration, Filing Deadlines and the AED 10,000 Penalty
UAE corporate tax is charged under Federal Decree-Law No. 47 of 2022 at 0% on taxable income up to AED 375,000 and 9% above that. Every taxable person must register with the Federal Tax Authority, including free zone companies and individuals whose business turnover exceeds AED 1 million in a calendar year. New companies have three months from incorporation to register. Returns and payment are due within nine months of the tax period end, and late registration carries an AED 10,000 penalty.
This guide is for founders, directors and finance leads of UAE mainland and free zone businesses. It covers who must register, the deadlines under FTA Decision No. 3 of 2024, filing on EmaraTax, records and audited accounts, and the penalties that apply.
| Rule | Position at 30 September 2026 |
|---|---|
| Tax rates | 0% on taxable income up to AED 375,000; 9% on the excess |
| Registration: new companies | Within 3 months of incorporation, establishment or recognition |
| Registration: individuals | Required once business turnover exceeds AED 1 million in a calendar year; residents register by 31 March of the following year |
| Late registration penalty | AED 10,000, waivable if the first return is filed within 7 months of the first tax period end |
| Return and payment | Within 9 months of the end of the tax period, through EmaraTax |
| Record keeping | 7 years after the end of the tax period |
| Audited financial statements | Required where revenue exceeds AED 50 million, and for qualifying free zone persons |
| Late filing penalty | AED 500 a month for the first 12 months, then AED 1,000 a month |
Who Must Register, and By When
Corporate tax applies to financial years starting on or after 1 June 2023. Cabinet Decision No. 116 of 2022 sets the 0% band at AED 375,000 of taxable income, with 9% on anything above it. Every taxable person must register: UAE mainland and free zone companies, foreign companies effectively managed and controlled in the UAE, and non-residents with a permanent establishment or nexus here. According to the Federal Tax Authority’s free zone guidance, free zone persons must register and file even if they expect to be qualifying free zone persons taxed at 0% on qualifying income.
Individuals are caught only when the turnover of their business activities exceeds AED 1 million in a calendar year, under Cabinet Decision No. 49 of 2023. Wages, personal investment income and real estate investment income do not count towards that test. FTA Decision No. 3 of 2024 requires a resident individual who crosses the threshold to register by 31 March of the following year.
The same FTA decision, effective 1 March 2024, set deadlines for companies that already existed by the month their licence was issued, whatever the year. January and February licences had until 31 May 2024, and December licences until 31 December 2024. All of those dates have now passed, so an existing company that has not registered is already late. A company incorporated on or after 1 March 2024, including in a free zone, has three months from incorporation, establishment or recognition.
Missing the deadline costs AED 10,000 per taxable person. This penalty was added in 2024 to the corporate tax penalty schedule in Cabinet Decision No. 75 of 2023. Since May 2025, the FTA has waived the penalty for businesses that file their first return, or annual declaration if exempt, within seven months of the end of their first tax period. Penalties already paid are credited to the EmaraTax account. In May 2026, the Authority said the waiver was still open and that more than 68,600 taxpayers had benefited. No end date has been announced, so check your eligibility with the FTA before relying on it.
Filing, Payment, Records and Audited Accounts
The return and the tax both fall due within nine months of the end of each tax period, and both are handled on the FTA’s EmaraTax platform. For calendar-year businesses, the 2025 return and payment were due by 30 September 2026, a date the FTA repeated in August 2026. The 2026 return will be due by 30 September 2027. A business electing Small Business Relief still files, using a simplified return. Businesses above the transfer pricing thresholds also file a disclosure form with the return.
Records must be kept for seven years after the end of the tax period they relate to, and the FTA can ask for them in Arabic. Ministerial Decision No. 82 of 2023 required audited financial statements from taxable persons with revenue above AED 50 million and from qualifying free zone persons. For tax periods starting on or after 1 January 2025, it was replaced by Ministerial Decision No. 84 of 2025. The new decision keeps both tests and requires tax groups to prepare audited special purpose financial statements. Below AED 50 million, the corporate tax rules do not require an audit, although your free zone authority, bank or shareholders may.
Cabinet Decision No. 75 of 2023 sets the other penalties. A late return costs AED 500 a month for the first 12 months and AED 1,000 a month after that. Unpaid tax attracts 14% a year, calculated monthly. An incorrect return costs AED 500 unless you correct it before the filing deadline. A voluntary disclosure carries 1% a month on the tax difference. If the error is found after an audit notice, the penalty is 15% of the tax difference plus 1% a month. Failing to keep records costs AED 10,000, or AED 20,000 for a repeat within 24 months. Failing to provide Arabic records on request costs AED 5,000, and obstructing a tax audit costs AED 20,000.
Corporate Tax Compliance Checklist for 2026
- Confirm every UAE entity in your group, including dormant and free zone companies, is registered on EmaraTax.
- If you have not registered, apply now. Then file the first return within seven months of the first tax period end to fall within the penalty waiver.
- Record the nine-month filing and payment date for each tax period. For calendar-year businesses, that is 30 September.
- Check whether revenue exceeds AED 50 million or you are a qualifying free zone person, and appoint auditors well before the deadline.
- Keep ledgers, invoices, contracts and bank records for seven years.
- If revenue is AED 3 million or less, decide each year whether to elect Small Business Relief in the return.
- Tell the FTA promptly about changes to registered details, and apply to deregister when a business closes. Late deregistration costs AED 1,000 a month, up to AED 10,000.
Frequently asked questions
What is the deadline to register a new UAE company for corporate tax?
Under FTA Decision No. 3 of 2024, a company incorporated in the UAE on or after 1 March 2024, including a free zone company, must apply for corporate tax registration within three months of incorporation, establishment or recognition. Missing the deadline attracts an AED 10,000 penalty. Under the Federal Tax Authority’s waiver initiative, that penalty is waived if the first return is filed within seven months of the first tax period end.
When is the UAE corporate tax return due?
The return and payment are both due within nine months of the end of the tax period and are made through EmaraTax. For a calendar-year business, the 2025 return fell due on 30 September 2026, and the 2026 return is due by 30 September 2027. A late return costs AED 500 a month for the first year and AED 1,000 a month after that. Unpaid tax attracts a penalty of 14% a year, calculated monthly.
Do free zone companies need to register for UAE corporate tax?
Yes. Free zone companies are taxable persons, so they must register, file a return within nine months of each tax period end and keep records for seven years. This applies even if they expect to be qualifying free zone persons taxed at 0% on qualifying income. Qualifying free zone persons must also prepare audited financial statements whatever their revenue, and they cannot elect Small Business Relief.
Is the AED 10,000 late registration penalty still being waived?
Yes. In May 2026 the Federal Tax Authority said its late registration waiver remained available. To qualify, you must file the first corporate tax return, or annual declaration if exempt, within seven months of the end of your first tax period. The waiver covers the first tax period only. Penalties already paid are credited to your EmaraTax account. No end date has been announced, so confirm eligibility with the FTA first.