Corporate Tax in the UAE: What Business Owners Should Know in 2025

Let’s be honest — when corporate tax was first introduced in the UAE, it raised a lot of eyebrows. “Do I need to register?” “How much do I have to pay?” “Does it apply to my business?” These are questions I hear from clients almost every day.

So, if you’re still confused or unsure about where your business stands in 2025, this article is for you. I’ve broken everything down in a simple, practical way — no jargon, just what you really need to know.

What Is Corporate Tax, Really?

In simple words, corporate tax is a 9% tax on business profits — but only if your net income is above AED 375,000. If your profits are lower, you’re in the 0% bracket (yes, zero!).

Before 2023, the UAE didn’t have this tax, which made it a huge attraction for businesses. But to align with global standards, the UAE government introduced corporate tax — and now, we all need to play by the new rules.

Who Has to Pay Corporate Tax?

Here’s the good news: not everyone has to pay corporate tax, but everyone does have to register.

You’re most likely required to register and pay if:

You run a mainland business
You’re a freelancer earning more than AED 375,000/year
You operate a Free Zone company (but more on that in a second)
You have a branch of a foreign business in the UAE

Even if your income is below the AED 375,000 threshold, you still need to register — the FTA has made that clear.

What Are the Rates?

0% tax on profits up to AED 375,000
9% tax on anything above that
15% (only for big multinational groups — not most small businesses)

That 0% bracket is designed to support small businesses and startups — which is great.

What About Free Zone Companies?

This is where things get a little tricky.

If you’re a Free Zone business, you can still benefit from 0% corporate tax — but only if you meet certain conditions, like:

Earning only qualifying income (e.g., trading within the Free Zone or outside the UAE)
Not dealing with the mainland (or paying 9% on that part)
Meeting the substance requirements set by the government

If you’re unsure, it’s best to get professional advice — the rules here are detailed, and one small mistake can cost you later.

What Are the Deadlines in 2025?

The deadline to register for corporate tax depends on your license issue date — so it’s not the same for everyone. But in general:

Registration: Within 3–6 months of your license anniversary
Filing your first return: Usually 9 months after your financial year ends

For example:
If your financial year ends on 31 December 2024, your tax return is due by 30 September 2025.

What Happens If You Don’t Register?

Honestly? You’ll face penalties — and they’re not small.

AED 10,000 fine for not registering on time
Additional fines for late filing or payment
Interest on any unpaid tax

The earlier you register and get your documents in order, the better.

What Documents Do You Need?

To get started, you’ll need:

Your trade license
Passport/Emirates ID copies
A basic financial statement (even a simple one if you’re a freelancer)
Legal structure info (are you a sole proprietor? LLC?)

If you already have accounting software or bookkeeping in place, you’re one step ahead.

How We Can Help

At Tax Accountant, we work with businesses of all sizes — from solopreneurs to companies with 50+ employees. We help with:

Corporate tax registration
Tax return filing
Sorting out your financials
Free Zone tax planning
Ongoing tax advice and compliance

We’ve already helped dozens of UAE businesses register successfully with the FTA — and we’d be happy to help you too.

Final Thoughts

I get it — taxes aren’t fun. But this isn’t something you want to ignore. The rules are here, and they’re being enforced more strictly every month.

My advice? Register early, stay compliant, and don’t try to DIY this unless you really know what you’re doing.

If you’re not sure where to start — or just want someone to handle it for you — reach out to us. We’ll make it simple.

Need help with your corporate tax?

👉 Get in Touch with Our Team