Staying compliant with the UAE’s corporate tax regime can feel overwhelming for business owners, especially with the Federal Tax Authority (FTA) now actively monitoring deadlines. Instead of focusing on growth, many get stuck asking: “When is my specific deadline, and how do I avoid that AED 10,000 penalty?”
This guide breaks down corporate tax filing into clear steps, highlighting the latest 2025/2026 updates so you can stay compliant and decide when to bring in a specialist like STH Financial Services.
What Corporate Tax in the UAE Actually Means
In the UAE, corporate tax is a 9% levy on net profits above AED 375,000. However, many small businesses overlook the fact that even if your profit is zero or you qualify for Small Business Relief (SBR), you must still register and file a return.
Note for 2025: If your annual revenue is below AED 3 Million, you may elect for Small Business Relief, meaning you pay 0% tax, but the filing obligation remains mandatory.
Who Must File a Corporate Tax Return?
If you are a UAE-resident company (LLC, PJSC, etc.) or a foreign entity effectively managed here, you have a filing obligation.
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Mainland Companies: Must register and file based on their financial year.
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Free Zone Entities: Filing is mandatory even to claim the “Qualifying” 0% rate. Failure to file can lead to losing your tax-free status.
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Individuals: Freelancers and sole proprietors with a turnover exceeding AED 1 Million must now register.
Step-by-Step Corporate Tax Filing in UAE
Step 1: Secure Your Corporate Tax TRN
Registration is not automatic. You must apply via the EmaraTax portal.
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Warning: The FTA has imposed a flat AED 10,000 penalty for businesses that fail to register by their specific deadline.
Step 2: Prepare IFRS-Compliant Financial Statements
Accurate filing starts with clean books. Under the law, your “Taxable Income” is derived from your accounting profit. You must ensure your statements follow IFRS (International Financial Reporting Standards).
Step 3: Apply the 2025 Adjustments
This is where most errors happen. You must “add back” certain expenses that aren’t tax-deductible:
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Entertainment Expenses: Only 50% is deductible.
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Fines and Penalties: Generally non-deductible.
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Interest Caps: Interest deductions are capped at 30% of EBITDA for larger entities.
Step 4: Submit via EmaraTax
You will log into your dashboard, input your revenue and adjustments, and attach your financial summary. The filing must be completed within 9 months of your financial year-end.
Common Mistakes to Avoid
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Assuming “Small” means “Exempt”: Even with zero profit, you must file.
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Missing the 20-Day Rule: Any change in your trade license or ownership must be updated in EmaraTax within 20 business days.
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Mixing Personal & Business Accounts: This is a major red flag during FTA audits.
Personal Insight: The “Before the 5th” Rule
At STH Financial Services, we’ve observed a consistent pattern: businesses that close their books by the 5th of every month never struggle with tax season.
By treating compliance as a monthly habit rather than an annual emergency, you gain more than just “safety”—or you gain financial visibility. When your reconciliations are done early, corporate tax filing becomes a simple “output” of your already healthy management system.
When to Bring in STH Financial Services
Tax laws are moving fast. You should seek professional support if:
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You operate in a Free Zone and need to protect your 0% status.
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You have Related Party transactions (Transfer Pricing).
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You want to claim Small Business Relief without making clerical errors that trigger audits.
Don’t let a registration deadline turn into a costly penalty. Book a consultation with STH Financial Services today to review your 2024/2025 tax position and ensure your filing is accurate, timely, and stress-free.
