Corporate tax changed what UAE businesses need from their bookkeeping. Filing is annual, but it is only straightforward if your accounts were maintained properly all year.
The basics
Corporate tax applies at 9% on taxable income above AED 375,000, with income at or below that threshold taxed at 0%. Free zone entities must register and file annually regardless of whether tax is owed, in order to maintain qualifying free zone person status.
The deadline
Your corporate tax return must be filed, and any tax paid, within nine months of the end of your financial year. Filing and payment are a single obligation with the same date.
For the most common case — a financial year ending 31 December 2025 — the deadline is 30 September 2026. A different year-end gives a different deadline, so calculate from your own accounting period.
Penalties
Late registration carries a penalty of AED 10,000. Late filing accrues monthly, and unpaid tax attracts a late payment penalty in addition. Registration, filing and payment penalties run in parallel — a business that missed all three accumulates them simultaneously.
Audited accounts
Audited financial statements apply to taxable persons with revenue at or above AED 50 million, and to qualifying free zone persons, subject to conditions.
How to prepare
- Register on EmaraTax if you have not already — the penalty for late registration is fixed and avoidable.
- Keep proper double-entry accounting throughout the year, not reconstructed at year end.
- Separate genuinely deductible business expenses from personal or non-deductible items as you go.
- Reconcile your accounts monthly so the year-end position is already known.
- File and pay within nine months of your year-end.
The software side
Corporate tax made proper accounting non-optional. Spreadsheets that were adequate for VAT summaries rarely produce defensible corporate tax figures.
Zoho Books handles this — fTA-accredited accounting — VAT returns, e-invoicing and corporate tax ready. Try it free.
Try our free UAE corporate tax calculator and AI tax assistant to estimate your position, then see our guide to FTA-accredited accounting software.
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This guide is general information, not tax or legal advice. Rules, deadlines and penalties are set by the FTA and MOHRE and change over time — always confirm current requirements on the official portals or with a registered tax agent before acting.