Businesses that operate in the UAE are mandated to comply with corporate tax requirements. While not a core activity, registering for corporate tax registration is critical for operating your business smoothly and avoiding unnecessary financial penalties. This guide outlines what you need to know to register for the UAE Corporate Tax 2025.
Corporate Tax (CT) is a mandatory requirement for businesses that operate within the boundaries of the UAE. The tax is mandated by the UAE Federal Tax Authority (FTA) under the Federal Decree Law 47. It requires all eligible entities in the UAE to register for corporate tax and obtain a Corporate Tax Registration Number (TRN). Once registered and issued the TRN, businesses must submit their Corporate Tax returns and any due taxes within 9 months after every tax period.
A TRN is a 15-digit number that is used by the FTA to identify a business that has successfully registered for corporate tax. This number acts as the official tax ID for your business, linking your company to all its tax-related activities such as audits, filings, and payments.
The TRN will always appear in all tax-related documents of your company, including tax returns and correspondence with the FTA. Consequently, you will not be able to file corporate tax returns or claim deductions without a valid TRN. If your business is eligible and you do not register for corporate tax on time, you could incur fines, delays in compliance approvals, and damage to your business reputation.
The UAE’s Federal Tax Authority (FTA) requires all taxable persons conducting business activities within the UAE to register for corporate tax. Both local LLCs and multinationals with branches in the UAE are required to register for corporate tax. The following is a breakdown of who needs to register for corporate tax in the UAE:
Before you register for Corporate Tax in the UAE, prepare all the necessary business documents to ensure your business is eligible. These include business licenses to trade in the UAE, identification details of company owners, and financial statements like income statements. All businesses and taxable persons are required to register for corporate tax, regardless of their annual taxable income; however, the 0% tax rate applies to taxable profits up to AED 375,000, and the 9% rate applies to taxable profits above that threshold. The registration process includes the following steps:
The following documents are typically required by the FTA to successfully register your business for corporate tax in the UAE:
All eligible businesses and individuals in the UAE are required to register for corporate tax and obtain a TRN by the deadline set by the FTA. The registration deadline for resident juridical persons (such as companies and LLCs) is based on the month their business license was issued, regardless of the year, with specific deadlines ranging from May 31, 2024, to December 31, 2024, depending on the month of license issuance. For example, if your business license was issued in April (regardless of year), your deadline to register for corporate tax is June 30,2024.
For natural persons (such as sole proprietors, and individual business owners), if your annual turnover from business activities in 2024 exceeds AED 1 million, you must register for corporate tax by March 31, 2025; for future years, the deadline is March 31 of the following year in which the threshold is exceeded. Failure to register on time may result in an administrative penalty of AED 10,000 as per Cabinet Decision No. 75 of 2023. It is strongly recommended to register early to avoid penalties and operational disruptions.
The process of registering your business for corporate tax in the UAE is straightforward, but mistakes can lead to delays, penalties, or unsuccessful registration. Common errors include failing to submit all required documents, providing incomplete or incorrect information, misunderstanding eligibility and registration deadlines, or not keeping up-to-date with FTA requirements. To reduce the risk of making mistakes, consider the following:
Registering a business for corporate tax in the UAE may seem like a complex process, especially if you do not have an accounting background. This Corporate Tax Registration Guide UAE has outlined the essential steps and requirements for registration. However, engaging a qualified tax consultant or professional firm, such as Swift Audit & Advisory, can help ensure you follow the correct procedures and remain fully compliant with all UAE tax regulations. Professional support can also assist you in accurately preparing and submitting the required documents, as well as providing ongoing guidance for future tax filings and compliance.
You are required to provide a valid trade license for your business (must not be expired), the Memorandum of Association (MOA) or Articles of Association (AOA), passport and Emirates ID copies of owners, partners, or shareholders, proof of authorization for the authorized signatory (such as a Power of Attorney, if applicable), and up-to-date contact information for the company and its authorized signatory.
Applying for your business for corporate tax in the UAE is free of charge.
It typically takes 30 minutes to submit your application and 20 days from the date of application for the FTA to review and approve it. Actual processing times may vary depending on the completeness of your submission and FTA workload
Once you receive your TRN number, it means that your business is successfully registered for corporate tax, and you must continue using it for future tax returns and compliance.