For years, the United Arab Emirates has attracted entrepreneurs and investors from around the world thanks to its favorable tax environment. However, with the recent introduction of the Corporate Tax, the fiscal landscape is evolving—especially for businesses operating in Dubai. All companies, including those in free zones, are now required to register with the Federal Tax Authority (FTA), even if they qualify for corporate tax exemptions. This obligation applies to both local businesses and subsidiaries of foreign groups and is part of the UAE’s broader strategy to enhance transparency and align with international standards. In this article, we walk you through the corporate tax registration process in Dubai, explaining who is affected, the required documents, deadlines to meet, and the consequences of non-compliance.
Understanding Corporate Tax in the UAE
Since June 2023, the UAE has implemented a corporate income tax, marking a major shift in the country’s tax system. This reform serves a dual purpose: to improve fiscal transparency and diversify government revenue, while also streamlining corporate accounting. All companies operating in the UAE, including those based in Dubai, are subject to this tax—whether they are mainland entities or free zone businesses. The corporate tax rate is set at 9% on profits exceeding AED 375,000. Below that threshold, companies are exempt, offering protection to small businesses and startups. However, to remain compliant, corporate tax registration is now mandatory, even if the company does not yet meet the taxable threshold.
Who Must Register for Corporate Tax in Dubai?
The rule is straightforward: any entity conducting business activity in Dubai must register for corporate tax. This includes Limited Liability Companies (LLCs), branches of foreign companies, free zone entities, and even certain independent professionals. Even tax-exempt entities—such as some investment funds or government bodies—must register with the tax authority to officially validate their status. Freelancers holding a commercial license may also be subject to registration, depending on their annual revenue or business structure. If you’re unsure, it’s always advisable to consult a tax advisor or refer to official updates from the Federal Tax Authority (FTA).
Step-by-Step Guide to Corporate Tax Registration
Corporate tax registration is completed entirely online through the FTA’s official portal, EmaraTax. First, create a user account on EmaraTax (if you haven’t already). Then, fill in the registration form with details about your company: business type, trade license number, business location (mainland or free zone), legal structure, and more. You will also need to upload documents such as your trade license, the passport of the company owner, Emirates ID, and any document proving the company’s activity. Once submitted, the FTA will review your application. If everything is in order, you’ll receive your Corporate Tax Registration Number (TRN).
Important Deadlines to Avoid Penalties
The reporting calendar depends on your company’s original incorporation date. For example, companies incorporated in January or February 2023 must register by May 31, 2024. Those registered in March or April have until June 30, 2024 to complete their registration. Newly established companies have 3 months from the date their trade license is issued to register with the tax authority. Respecting these deadlines is crucial, as a late registration penalty of AED 10,000 may be imposed by the FTA.
Why This Registration Is Essential for Your Business
Registration isn’t just a legal requirement—it also signals professionalism to business partners, banks, and investors. It enables you to plan for future tax obligations and avoid accounting irregularities. Moreover, some free zones offer specific tax advantages, such as maintaining a 0% tax rate, but these benefits are conditional upon timely registration and meeting certain legal criteria.
Conclusion: Personalized Support for Your Registration
As you can see, registering for corporate tax in Dubai is an essential step in complying with the UAE’s new tax regulations. To make the process easier, we offer tailored assistance based on your business type and specific needs. Whether you’re a startup, SME, freelancer, or free zone company, we can help you prepare your documents, complete the EmaraTax form accurately, and meet your deadlines with confidence. To benefit from our expert support or ask questions, feel free to contact us today at: support@ares-accounting.com.