Since June 1, 2023, the Ministry of Finance of the United Arab Emirates (UAE) has introduced corporate income tax (Federal Law-Decree No. 47 of 2022). It is levied on companies and individual entrepreneurs (including freelancers) who conduct business in any of the Emirates, including Dubai, Abu Dhabi, Ajman, etc., both in free zones and on the mainland.
The above law covers all key aspects of tax accounting:
- Registration with the UAE Federal Tax Authority (FTA).
- Deregistration (upon business closure).
- Deadlines for filing a declaration.
- Tax rates.
Our professional advice on these issues will allow you to protect your business from any problems associated with breaking the law. Alliance Business Advisors will provide you with all the necessary support during the registration process.
What is corporate tax in the UAE?
Under Federal Law and Decree No. 47 of 2022 on Corporate Tax, all legal entities and entrepreneurs (including free zone companies) in the UAE, as well as foreign companies with a permanent establishment in the country, are required to register with the FTA. The entities that must register for corporate tax are:
- Legal entities registered in the UAE or carrying out business operations in the country.
- Sole proprietors based in the UAE.
- Companies registered in free trade zones (FTZs).
- Non-resident legal entities with a permanent establishment in the UAE.
Once registered, organizations are issued a Tax Registration Number (TRN). Sole proprietors and legal entities must apply for a TRN for income tax purposes, even if they already have a VAT number, as these are separate identifiers. That is, the same company will have different registration numbers for corporate tax and VAT. If the company delays registration, filing a declaration, or tax payments, it may incur fines. Our specialists will explain the nuances of this issue and help you set up the company's operations to avoid any corporate tax issues in the UAE.
How does a company register for corporate tax in the UAE?
Here are the main stages of a company tax registration in the UAE:
1. Preparing documents. For registration, you will need*:
| Individuals (entrepreneurs) | Legal entities |
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2. Applying through the FTA portal: documents are submitted via the tax authority's official website.
3. Obtaining a TRN certificate. After successful registration, the FTA issues a certificate with a tax number. The application is typically processed within 20 working days; however, if additional documents are required, the timeline may be extended.
* In some cases, the list may change; however, in any case, Alliance Business Advisors will ensure full compliance with all applicable requirements.
Our specialists will provide you with all the necessary assistance at every stage of the registration process to ensure the desired result in the shortest possible time.
Declarations are submitted within nine (9) months after the end of the financial year. For most companies, the first tax period begins on January 1. For those whose financial year coincides with the calendar year, the declaration for 2024 must be submitted by September 30, 2025.
If you have any questions or need assistance with corporate tax registration in the UAE, please contact our specialists by filling out the request form in the "Contacts" section of the website. Alliance Business Advisors will provide you with detailed advice and help with all the paperwork.
Frequently asked questions
My company is already registered for VAT. Do I need to register again for corporate tax?
Yes, you must register separately for corporate tax. The numbers for corporate tax and VAT are different, meaning that the same company will have different registration numbers for these taxes.
Does the registration and tax filing process differ for companies registered in other Emirates of the UAE, not in Dubai?
No, the registration process and the list of required documents are the same for all Emirates: Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, Ajman, Fujairah, and Umm Al Quwain.
What is the format of the Corporate Tax Registration Number?
The Registration Number (TRN) is a 15-digit number issued by the Tax Authority on a registration certificate and indicates the date of registration and the reporting tax period.
For example, in the number 123456789012345, the first three digits (123) represent the tax authority (FTA), the next nine digits (456789012) are the company's unique identifier, and the last three digits (345) are the check digits, calculated from the previous nine.
Is there a minimum income threshold for corporate tax registration in the UAE?
No, there is no minimum income threshold for corporate tax registration. If a company's income for the year is less than AED 375,000, it is taxed at a preferential rate of 0%. However, registration is mandatory.
If necessary, our specialists can provide you with detailed advice on the legal regulation of corporate tax in the UAE.
If a company has several branches in the UAE, must each branch be registered separately?
No, branches do not have an independent legal personality and are part of the parent company. However, the registration form must include information about all branches.
Can a company change its tax period?
Yes, a company can change its financial (and tax) year if the constituent documents are amended accordingly. After making such amendments, it is necessary to contact the Federal Tax Authority for approval.
In what situations is a company deregistered for corporate tax?
If a company is not actively engaged in commercial activities, it can apply for deregistration. To do this, it is necessary to file an income tax return, pay all applicable taxes and penalties (if necessary), and fulfill other obligations to the tax authorities. Alliance Business Advisors will help you with this.
If a business is not actively operating, is it necessary to file a tax return?
Yes, registered taxpayers are required to file returns, even if they are not actively operating or have zero income.
Your business losses do not exempt your company from filing a tax return. Losses can be used to reduce taxable income in future tax periods.
Our consultants will describe in detail all possible scenarios and the actions required for each case.
When is it necessary to file a tax return and pay income tax?
The return and payment of tax must be made within nine (9) months after the end of the company's financial year. The Corporate Tax Act came into force on June 1, 2023. For companies whose financial year began during this period, the first reporting period starts on June 1. For others, the tax applies from January 1, 2024, and reporting must be submitted by September 30, 2025.
