• Implementation: The UAE government introduced a federal corporate tax, which took effect for financial years starting on or after June 1, 2023.
• Tax rates:
  • 0% on taxable income up to AED 375,000.
  • 9% on taxable income above AED 375,000.
  • Different rates apply to large multinational corporations that are part of the OECD's Pillar 2 initiative.
• Applicability: The tax applies to all businesses in the UAE, including most free zone companies, unless specifically exempted. Certain government entities and non-profit organizations may be exempt.
• Free zones: Qualifying free zone companies may be eligible for a 0% corporate tax rate on their qualifying income, provided they meet certain conditions and do not generate significant income from mainland UAE.
• Calculation: The tax is calculated on a business's net profits after deducting allowable expenses.
• Filing: Businesses are required to file an annual corporate tax return with the Federal Tax Authority (FTA). 

• Mainland companies: All businesses licensed to operate in mainland UAE.
• Free Zone Persons (FZP): All entities registered in one of the UAE's free zones must register, regardless of whether they expect to have a 0% or 9% tax liability. To qualify as a "Qualifying Free Zone Person" (QFZP) with a 0% tax rate on qualifying income, an entity must first be registered.
• Foreign entities: Businesses incorporated in a foreign jurisdiction that are either effectively managed and controlled from the UAE or have a permanent establishment (PE) in the UAE must register. 

• The total turnover from their business activities in a calendar year exceeds AED 1 million.
• The requirement applies to income from commercial activities, not personal income like wages, personal investments, or real estate. 

• • Certain government and government-controlled entities: Exemption from registration may apply if they are not conducting taxable business activities.
  • Exempt extractive and non-extractive natural resource businesses: These are businesses involved in natural resource extraction or other similar activities that are subject to tax at the Emirate level and have notified the Ministry of Finance.
  • Non-resident persons with only State Sourced Income: A non-resident who only earns income from within the UAE and does not have a permanent establishment in the country is not required to register.

1. Visit the FTA website and sign up for the EmaraTax e-services portal.
2. Activate your account via the confirmation link sent to your email.
3. Create a new "taxable person" profile by providing details in both English and Arabic.
4. Click on your company name in the taxable person list and select "Register" for Corporate Tax.
5. Fill out the registration form with your company information, including the date of incorporation and trade license details.
6. Upload the required documents, such as your trade license, Memorandum of Association (MoA), and Emirates IDs/passports of the owners.
7. Review, sign, and submit your application. It will be processed within a few business days. 

• Non-deductible expenses (add-backs): These expenses, which might be included in your accounting profit calculation, must be added back for tax purposes. Common examples include:
  • 50% of entertainment expenses incurred for customers, shareholders, or business partners.
  • Interest expenses that exceed 30% of your earnings before interest, tax, depreciation, and amortization (EBITDA).
  • Fines, penalties, and illicit payments, except for compensation for damages.
  • Dividends or other profit distributions.
  • Capital expenditures and personal expenses.
• Exempt income (subtract): Certain types of income are exempt from corporate tax and should be subtracted from your accounting profit. This can include:
  • Qualifying dividends and capital gains from certain shareholdings.
  • Income earned by a foreign branch, provided you elect to claim this exemption.
  • Income of a "Qualifying Free Zone Person" (QFZP), as long as it is "Qualifying Income" and meets the de minimis requirements. 

• Taxable income up to AED 375,000: 0% tax rate.
• Taxable income exceeding AED 375,000: 9% tax rate on the portion above this threshold. 

• Log in to the EmaraTax portal. If you have an existing account from a previous registration (like for VAT), you can use it to log in.
• Select the option to register for Corporate Tax, which will use your existing information to pre-populate many fields.
• Complete the registration form with your company details, license information, financial year, and ownership details. 

• Determine if audited statements are required. Companies with revenue over AED 50 million, Qualifying Free Zone Persons (QFZPs), and members of a Tax Group must prepare audited financial statements.
• Consider Small Business Relief: If your annual revenue is less than AED 3 million, you can opt for Small Business Relief, which simplifies the process and treats your taxable income as zero. 

• Start with your accounting net profit: This is the profit or loss from your financial statements.
• Make tax adjustments: Add back non-deductible expenses (e.g., 50% of entertainment expenses, certain interest costs, fines) and subtract exempt income (e.g., qualifying dividends).
• Apply tax rates:
  • 0% rate on taxable income up to AED 375,000.
  • 9% rate on taxable income that exceeds AED 375,000.
  • 0% on "Qualifying Income" for registered QFZPs. 

• Login to the EmaraTax portal EmaraTax portal.  and navigate to the Corporate Tax section.
• Access the filing form, which will be tailored to your entity type.
• Enter your financial data and any relevant elections, such as for Small Business Relief.
• Confirm the calculated tax liability and submit the return.
• Pay any tax due through the portal by the deadline. 

• The deadline for filing your tax return and paying any CT is nine months after the end of your financial year.
• Example: For a financial year ending on December 31, 2024, the deadline is September 30, 2025

• The Gregorian calendar year (January 1 to December 31).
• A different 12-month period chosen by the company, such as April 1 to March 31. This is typically set out in the company's Memorandum of Association (MoA). 

• Example (Calendar Year): If your financial year runs from January 1 to December 31, your first Tax Period is January 1, 2024, to December 31, 2024.
• Example (Non-Calendar Year): If your financial year ends on September 30, your first Tax Period is October 1, 2023, to September 30, 2024. 

• Example: A company incorporated on June 5, 2023, that follows a calendar year financial reporting period will have a first Tax Period running from June 5, 2023, to December 31, 2023. 

• Liquidation of the company.
• Aligning the financial year with that of a parent company or another member of a tax group.
• Other valid reasons supported by the business, such as aligning with a parent company for reporting or tax relief in another country. 

• Your Tax Period is used for all Corporate Tax obligations, including calculating taxable income, submitting your tax return, and paying any tax due.
• The tax return and payment are due nine months after the end of the relevant Tax Period.
• For newly incorporated companies, the FTA will automatically accept a first financial year of between 6 and 18 months as the first Tax Period, without a special application. 

• Taxable persons (excluding tax groups) with revenue exceeding AED 50 million: These entities are required to prepare and maintain audited financial statements for the relevant tax period.
• Qualifying Free Zone Persons (QFZP): Regardless of revenue, QFZPs are also required to prepare and maintain audited financial statements to ensure they qualify for the preferential 0% Corporate Tax rate on their Qualifying Income.
• Tax Groups: All Tax Groups must prepare and maintain audited special purpose financial statements, even if their consolidated revenue is below the AED 50 million threshold
• It is important to note that even if your business doesn't meet the revenue threshold requiring audited statements, you are still required to keep accurate accounting records and financial statements to substantiate the information reported in your tax return. You must maintain these records for at least 7 years following the end of the tax period to which they relate.

• Standard Rate: If your taxable profit is above AED 375,000, the standard corporate tax rate is 9%.
• 0% Rate: For taxable profits below AED 375,000, the rate is 0%.
• Qualifying Free Zone Person (QFZP): If your business is in a free zone and meets all the conditions, your "qualifying income" may be taxed at a 0% rate.
• Small Business Relief: If your annual revenue is below AED 3 million and you meet other conditions, you may qualify for "Small Business Relief." This means you are treated as having no taxable income and a simplified filing process.

• Entertainment expenses: Only 50% of these expenses (for customers, shareholders, or business partners) are generally deductible for tax purposes.
• Fines and penalties: Penalties for violations of any law, damages, or breaches of contract are not tax-deductible.
• Donations: Donations to non-qualifying public benefit entities are generally not deductible.
• Capital expenditures: Large, long-term asset purchases are capitalized and depreciated over time, not deducted as a one-off expense.
• Interest expenses: The deduction for net interest expenses is generally limited to 30% of adjusted EBITDA, with special rules for related-party loans.
• Personal expenses: Expenses not incurred wholly and exclusively for the business are not tax-deductible.
• Costs related to exempt income: Expenses incurred to generate exempt income are not deductible. 

• Exempt dividend income: Income from "qualifying shareholdings" can be exempt from corporate tax.
• Qualifying free zone income: A "Qualifying Free Zone Person" can enjoy a 0% corporate tax rate on qualifying income.
• Foreign branch income: A UAE company may elect to exempt the income of its foreign branch from its taxable income, provided certain conditions are met. 

• • Transfer pricing adjustments: For transactions with related parties, the company must ensure they are priced at "arm's length," meaning at a market-based price. Adjustments may be necessary to correct for any non-arm's length pricing.
  • Unrealized gains or losses: Under IFRS, unrealized gains or losses (for example, on investments) may be reported in the financial statements. The Corporate Tax Law allows a business to elect to only recognize these gains or losses when they are actually "realized" through a sale or disposal, which requires an adjustment.
  • Tax loss relief: Losses carried forward from previous years can be used to offset up to 75% of the current period's taxable income. 

• e-Invoicing in UAE applies to all VAT-registered entities for B2B and B2G transactions, excluding B2C and certain exempt sectors.
• Large businesses with revenue ≥ AED 50 million must appoint an ASP by 31 July 2026 and implement mandatory e-invoicing from 1 January 2027.
• Only machine-readable formats (XML/JSON using UBL or PINT) are valid; paper or PDFs won’t qualify.
• Accredited Service Providers (ASPs) are mandatory for transmitting, validating, and storing invoices.
• Federal Tax Authority (FTA) will monitor, regulate, and store all e-invoices for compliance.

e-Invoicing Implementation Timeline

The UAE government has released updated regulations through Ministerial Decision No. 243 of 2025 and Ministerial Decision No. 244 of 2025 on 28^th September, which officially set out the phased rollout of the Electronic Invoicing System.

The new implementation roadmap is as follows:

Certain categories of transactions are excluded from mandatory e-invoicing under Article 4 of Ministerial Decision No. 243/2025:

• B2C transactions are not subject to mandatory e-invoicing
• Transactions conducted by government entities in a sovereign capacity that are not in competition with the private sector.
• International passenger air transport services where electronic tickets are issued.
• Ancillary airline services linked to passenger transport when an Electronic Miscellaneous Document (EMD) is issued.
• International transport of goods by air, where an airway bill is issued. This exclusion applies for a limited period of 24 months from the system’s effective date.
• Financial services that are VAT-exempt or zero-rated.
• Any other transactions determined by the Minister of Finance.Role of Accredited Service Providers (ASPs) in UAE e-Invoicing

As per UAE regulations, all taxpayers subject to the e-invoicing mandate must appoint an Accredited Service Provider (ASP) prior to implementation deadlines (July 2026: January/October 2027, depending on revenue and entity type). This requirement reflects the UAE’s decision to adopt a Peppol-based Continuous Transaction Control (CTC) model, where ASPs are central to ensuring compliance, accuracy, and secure transmission of e-invoices.

Every e-invoice and e-credit note must include all data fields and particulars prescribed by the Ministry of Finance. These fields follow the UAE e-Invoicing Data Dictionary and align with Peppol/UBL standards.