Key Highlights

• The UAE corporate tax applies 0% on income up to AED 375,000 and 9% on income exceeding this threshold.
• All UAE juridical persons must register for corporate tax regardless of their actual tax liability.
• Small Business Relief offers a 0% tax rate for businesses with annual revenue of AED 3 million or less through 2026.
• Large multinational enterprises with EUR 750 million+ in global revenue will face an additional 15% domestic minimum top-up tax from 2025.

As the UAE continues to evolve its business landscape, understanding corporate tax registration has become crucial for all business owners operating in the Emirates. 

With the introduction of the Federal Corporate Tax in June 2023 and new developments throughout 2024 and 2025, you need to navigate these requirements carefully to ensure compliance and avoid penalties.

Keep reading this article to learn more. 

Disclaimer: This article is intended for informational purposes only and does not constitute professional tax, legal, or financial advice. Corporate tax laws and regulations in the UAE are subject to frequent changes, and readers should verify current requirements with the Federal Tax Authority. 

The UAE Corporate Tax: What You Need to Know

The UAE’s corporate tax system represents a significant shift in the country’s taxation approach, aligning with international standards while maintaining competitiveness. 

The federal corporate tax applies a rate of 0% on taxable income up to AED 375,000 and 9% on income exceeding this threshold. This structure supports small businesses while generating revenue from larger enterprises.

Starting January 1, 2025, the UAE implemented the Domestic Minimum Top-up Tax (DMTT) at 15% for large multinational enterprises with consolidated global revenues of EUR 750 million or more. This ensures alignment with OECD’s Pillar Two framework and prevents base erosion.

Who Must Register for Corporate Tax

Understanding registration requirements is essential to avoid penalties and ensure compliance. Several categories of entities must register for corporate tax in the UAE.

1. Mandatory Registration Categories

All UAE juridical persons, including companies incorporated in the UAE, must register regardless of their tax liability. Free zone entities also fall under this requirement, even those qualifying for the 0% rate. Foreign companies operating in the UAE through permanent establishments must register, as do natural persons conducting business activities with an annual turnover exceeding AED 1 million.

2. Current Registration Deadlines

The deadline structure varies depending on your entity type and incorporation date. Always consult a professional consultant for the best guidance. 

Essential Documents for Registration

Proper documentation is fundamental to successful corporate tax registration. You must gather specific documents before beginning the process through the EmaraTax portal.

1. Core Business Documents

Your valid trade license serves as the foundation of your registration application. This document proves your legal business operation within the UAE and must be current and unexpired. Additionally, you need your Certificate of Incorporation for free zone and offshore companies, along with your Memorandum and Articles of Association.

2. Identity and Authorization Requirements

Current passport copies for all shareholders, owners, and partners are mandatory. If you are a UAE resident, you must provide valid Emirates ID copies that have not expired. For representative applications, you need notarized Power of Attorney documents and board resolutions authorizing registration.

3. Business Location and Financial Information

You must provide verification of your physical office address, including lease agreements or Ejari certificates. Contact details such as company phone numbers, email addresses, and designated contact person information are required. Bank account information and existing VAT registration details, if applicable, must also be included.

Entity-Specific Documentation

Different business structures require specific documentation sets tailored to their operational framework.

1. Mainland Companies

Mainland entities need their valid mainland trade license, MOA showing company structure, and shareholder identification documents. Office lease agreements or Ejari certificates verify business location, while authorized signatory documentation confirms representation authority.

2. Free Zone Companies

Free zone entities must provide their free zone trade license and certificate of incorporation from the relevant free zone authority. Proof of the free zone office address is required, along with additional documentation demonstrating substance requirements for 0% tax rate qualification.

3. Individual Natural Persons

Natural persons conducting business need their trade license or freelance permit, personal passport and Emirates ID, and business activity documentation. Importantly, you must provide financial records supporting turnover calculations that exceed AED 1 million for 2024.

Small Business Relief Considerations

The Small Business Relief program provides significant benefits for qualifying entities, allowing them to pay 0% corporate tax if their revenue remains under AED 3 million.

1. Eligibility and Benefits

You can apply for Small Business Relief if your annual revenue is AED 3 million or less for any tax periods between 2024 and 2026. However, if your revenue exceeds AED 3 million in any tax period during this window, you permanently lose eligibility for future periods.

2. Strategic Decision Making

Choosing whether to elect Small Business Relief requires careful consideration. While you avoid corporate tax during the relief period, you cannot deduct interest expenses or carry them forward to future years. For growing businesses or those with significant interest expenses, foregoing the relief might provide better long-term tax benefits.

The DMTT Impact on Large Enterprises

Large multinational enterprises face additional complexity with the introduction of DMTT in 2025.

1. DMTT Requirements

If your group has consolidated global revenues of EUR 750 million or more in at least two of the last four financial years, you must comply with DMTT requirements. This ensures your UAE operations pay a minimum effective tax rate of 15%, bridging the gap between the standard 9% rate and international minimum standards.

2. Additional Compliance Obligations

DMTT compliance involves calculating effective tax rates, preparing GloBE information returns, and maintaining detailed documentation for Pillar Two compliance. These requirements significantly increase compliance costs and complexity for affected multinational groups.

Digital Registration Through EmaraTax

The EmaraTax portal serves as the exclusive platform for corporate tax registration, offering 24/7 access and integrated government services.

EmaraTax integrates with UAE Pass and other government entities, streamlining the user experience. The platform provides improved self-help options and will soon be available on mobile devices, making registration more accessible for business owners.

Also Read: Tax Optimization—Top 10 Ways to Optimize Your UAE Tax Position

Step-by-Step Registration Process

Begin by creating an account using your email and phone number or UAE Pass integration. Select your entity type carefully, as this determines the specific requirements and documentation needed. 

Complete the registration form with accurate business and personal details, then upload all required documents in PDF format within specified file size limits.

1. Application Processing and Approval

The FTA typically processes applications within 20 business days, provided all documentation is complete and accurate. If additional documents are required, you have 60 days to submit them. Upon approval, you receive your Tax Registration Number (TRN), which is essential for all future tax filings.

2. Tax Group Formation for Related Entities

Corporate groups can benefit from tax group formation, which allows consolidated tax treatment for qualifying entities.

3. Formation Requirements

All entities must be resident juridical persons incorporated in the UAE or effectively managed and controlled there. The parent company must own at least 95% of share capital, voting rights, and profit entitlements in each subsidiary, either directly or indirectly through other subsidiaries.

4. Restrictions and Limitations

Neither parent nor subsidiary companies can be exempt persons or qualifying free zone persons. All group entities must maintain the same accounting period and follow consistent accounting standards, either IFRS or IFRS for small and medium-sized companies.

Exempt Persons and Special Categories

Certain entities may qualify for exemption from corporate tax, though registration requirements often still apply.

1. Government and Controlled Entities

Government entities and government-controlled entities specified by cabinet decisions are automatically exempt from corporate tax. However, they may still need to register and file annual declarations to maintain their exempt status.

2. Investment Funds and Public Benefit Organizations

Qualifying investment funds and public benefit entities can apply for exemption, subject to meeting specific criteria and FTA approval. These entities must demonstrate their qualifying nature through detailed documentation and ongoing compliance reporting.

Common Registration Challenges and Solutions

Understanding potential obstacles helps ensure smooth registration completion.

1. Document Format and Technical Issues

Documents must be submitted in PDF format with appropriate file sizes. Upload failures often result from incorrect formats or oversized files. Ensure all identification documents are current and not expired, as the system will reject outdated documentation.

2. Application Status and Communication

Monitor your application status regularly through the EmaraTax portal and check email communications from the FTA. Respond promptly to requests for additional information or clarification to avoid processing delays.

Frequently Asked Questions

1. How long does corporate tax registration typically take?

Registration usually takes 20 business days from submission, though this may extend if additional documents are required. Ensure all documentation is complete before submission to avoid delays.

2. Can I register multiple business activities under one application?

Yes, one registration covers all licensed activities under the same legal entity. You do not need separate registrations for different business activities within the same company.

3. Are expired Emirates ID copies acceptable for registration?

No, all identification documents must be current and valid. The system will reject applications with expired Emirates IDs or passports, so ensure all documents are up to date before submission.

4. Can I submit documents in Arabic?

Documents can be submitted in English or Arabic. If you have documents in other languages, translations may be required depending on FTA requirements.

5. Do holding companies need special documentation?

Yes, holding companies require additional documentation for investment activities and shareholdings. This includes detailed ownership structures and investment portfolio information.

6. How do I register for tax group status?

Submit group structure documents demonstrating the required ownership criteria and ensure all entities meet the specific conditions outlined in the Corporate Tax Law.

Moving Forward with Confidence

The UAE’s corporate tax registration requirements represent a fundamental shift in the business compliance landscape. Understanding these requirements early and preparing thoroughly ensures you can navigate registration successfully while maintaining focus on your business operations.

Remember that prices and requirements tend to change, so always verify current information with official UAE government sources before making final decisions. The Federal Tax Authority continues to provide guidance and support through the EmaraTax portal and official communications, ensuring you have access to the most up-to-date information for successful compliance.

Book your Free Consultation call today with the expert of JSB Incorporation to learn more about corporate tax registration.