Since financial years starting on or after 1 June 2023, almost every UAE company — mainland, free zone and many foreign companies with a UAE presence — is inside the Corporate Tax system. The rate is simple; the rules around it are not. Registration deadlines, reliefs that must be elected, free zone conditions, related-party rules and the evidence the FTA expects all decide what you actually pay.
SJPR keeps it under control from day one: your books are tax-ready every month, your forecast shows the liability long before the deadline, and your return is prepared, reviewed and filed by the same team that knows your business.
How UAE Corporate Tax works
- 0% on taxable income up to AED 375,000 and 9% above it.
- Qualifying Free Zone Persons can pay 0% on qualifying income — see our free zone guide.
- Large multinational groups (consolidated revenue of EUR 750 million or more) are subject to a 15% Domestic Minimum Top-up Tax for financial years starting on or after 1 January 2025.
- The return and the payment are due within nine months of the end of your financial year — 30 September for a December year end.
- Records must be kept for at least seven years.
Small Business Relief — use it while it lasts
Resident businesses with revenue of AED 3 million or less in the current and every previous tax period can elect to be treated as having no taxable income. The relief is available for tax periods ending on or before 31 December 2026 — and it must be elected in the return. It is not automatic, and it is not always the best choice: electing it means losses of that year cannot be carried forward, and it is not available to Qualifying Free Zone Persons or to members of large multinational groups.
We model both options in your forecast before you decide.
What we do every year
- Registration on EmaraTax and your tax registration number (TRN) recorded in SJPR BiX.
- Monthly bookkeeping to IFRS so the tax computation starts from clean accounts.
- Tax adjustments: non-deductible expenses, entertainment (50%), interest limitation, related-party and connected-person payments, exempt dividends and participations.
- Reliefs and elections: Small Business Relief, tax losses (up to 75% of taxable income per year), transfer of losses within groups, tax groups.
- Return, payment plan and filing — reviewed by a second accountant before submission.
- Evidence pack kept in your SJPR BiX client area in case the FTA asks.
Penalties changed in 2026
Since 14 April 2026 (Cabinet Decision No. 129 of 2025) late payment costs 14% a year on the unpaid tax, a voluntary disclosure costs 1% per month on the difference, and errors found by the FTA cost a 15% fixed penalty plus the monthly charge. Getting it right the first time — or correcting it early — has never been cheaper. Read more in our tax health check.
Frequently asked questions
Do I need to register for Corporate Tax if I make no profit?
Yes. Registration depends on being a taxable person, not on making a profit. Most UAE companies — including free zone companies and companies that expect to claim Small Business Relief — must register and file a return every year.
When is my first Corporate Tax return due?
Nine months after the end of your first financial year that started on or after 1 June 2023. For a company with a 31 December year end, each return is due by 30 September of the following year.
Should I elect Small Business Relief?
If your revenue is AED 3 million or less it often makes sense, but not always: electing it means that year’s tax loss cannot be carried forward. We compare both scenarios in your tax forecast before the return is filed.
Are dividends paid to shareholders taxed?
The UAE does not tax dividends paid to individual shareholders, and dividends received by a UAE company from qualifying participations are generally exempt. What is taxed is the company’s taxable income.
How long must I keep my records?
At least seven years after the end of the tax period. SJPR keeps your records, computations and returns in your SJPR BiX client area.
This guide reflects UAE law and FTA guidance as at October 2026. It is general information, not advice for your specific situation — rules and thresholds change, so speak to an SJPR advisor before acting.
