Corporate Tax Registration in the UAE: Deadlines and Penalties Explained

With the implementation of the UAE Corporate Tax regime effective from June 1, 2023, all businesses operating in the country are now required to register with the Federal Tax Authority (FTA) for Corporate Tax purposes. The FTA has established a structured timeline for registration and imposed penalties for non-compliance. Understanding the deadlines and consequences is essential for all UAE-resident and non-resident juridical persons to ensure smooth compliance and avoid administrative fines.

In this article, we will explore the corporate tax registration deadlines, key requirements, and penalties for non-registration.

What is Corporate Tax in the UAE?

Corporate Tax (CT) is a direct tax levied on the net income or profit of corporations and other businesses. Introduced as part of the UAE’s commitment to align with global tax standards and to diversify government revenue, the tax applies to:

• UAE-resident juridical persons (e.g., LLCs, PSCs, PJSCs)
• Non-resident entities with a permanent establishment or nexus in the UAE
• Natural persons conducting business activities, if annual income exceeds AED 1 million

The standard corporate tax rate is 9% on taxable income exceeding AED 375,000, while income below this threshold is taxed at 0%, providing relief for small businesses and startups.

FTA Decision on Corporate Tax Registration Deadlines

On March 1, 2024, the Federal Tax Authority issued FTA Decision No. 3 of 2024, which specifies detailed registration timelines for corporate tax based on the date of license issuance — not the date of license expiry. This decision is critical for companies to determine their corporate tax registration deadline.

✅ Corporate Tax Registration Deadlines for Resident Juridical Persons:

These deadlines apply to all resident juridical persons across the UAE, including mainland, free zone, and offshore entities. Businesses holding multiple licenses must consider the oldest license issue date when determining their deadline.

Who Must Register?

The following entities are required to register for UAE Corporate Tax:

1. UAE-Resident Juridical Persons: Includes Limited Liability Companies (LLCs), Private and Public Joint Stock Companies (PJSCs), and other entities established in the UAE or effectively managed from within the UAE.
2. Free Zone Companies: Even if a free zone entity is eligible for a 0% tax rate under the “Qualifying Free Zone Person” regime, it must still register with the FTA for corporate tax.
3. Non-Resident Juridical Persons: Companies that have a Permanent Establishment (PE) or derive income from UAE sources and have a nexus in the UAE are also required to register.
4. Natural Persons (Individuals): If an individual conducts business or professional activities and earns over AED 1 million per year, they are considered a taxable person and must register.

How to Register for Corporate Tax?

Corporate tax registration is done online via the EmaraTax platform provided by the FTA. The steps include:

1. Login to EmaraTax (https://eservices.tax.gov.ae)
2. Select “Corporate Tax” and click “Register”
3. Provide trade license, Emirates ID/passport copies, and other required documents
4. Submit the application for approval

Once processed, the FTA will issue a Corporate Tax Registration Number (TRN).

Penalties for Late or Non-Registration

Failure to register within the prescribed timeline will result in a fixed administrative penalty:

• AED 10,000 per taxable person

This fine is imposed regardless of whether the business has generated income or not. It’s applicable to every legal entity that fails to meet its registration deadline—even if the company is dormant or not actively trading.

Additional consequences may include:

• Ineligibility for certain tax exemptions (especially for free zone entities)
• Delays in opening bank accounts, bidding for tenders, or renewing licenses
• Further penalties for non-compliance in filing or paying corporate tax

Practical Scenarios

Here are some examples to illustrate how the registration deadlines and penalties may apply:

• Example 1: A company with a trade license issued in January 2023 must register for corporate tax by May 31, 2024. If it fails to register by this date, it is liable to pay an AED 10,000 penalty.
• Example 2: A business incorporated in October 2023 must complete registration by December 31, 2024.
• Example 3: A new company established on March 10, 2024 must register for corporate tax within 3 months, i.e., by June 10, 2024.

Key Takeaways

• Corporate tax registration in the UAE is mandatory for all eligible entities, including mainland and free zone companies.
• The registration deadline is based on the earliest license issue date, not the expiry or renewal date.
• AED 10,000 penalty applies for late registration, regardless of tax liability.
• Even if the company qualifies for 0% tax (like Qualifying Free Zone Persons), registration is still required.
• Early registration ensures compliance, avoids penalties, and enhances business credibility.

Final Thoughts

With the UAE’s corporate tax regime now in effect, businesses must act swiftly to ensure compliance. Understanding the correct registration deadline and completing the process in time is not only a regulatory requirement but also a sign of responsible corporate governance. Delays or oversights can result in penalties, reputational damage, and legal issues.

If you’re unsure about your deadline or need assistance with the process, it’s advisable to consult a tax consultant Dubai or corporate services provider familiar with UAE tax law to avoid costly mistakes and ensure full compliance with FTA regulations.