Key takeaways
- Register for corporate tax within three months of incorporation (companies from 1 March 2024).
- File a return for every tax period, even at 0%, within nine months of the period's end.
- Free zone companies are taxable persons and must register and file too.
- Watch the VAT threshold: mandatory above AED 375,000 of taxable supplies and imports.
- Keep EmaraTax access with more than one person in the company.
Ten common mistakes and their fixes
| Mistake | The rule | Fix |
|---|---|---|
| Registering for corporate tax late | 3 months from incorporation; AED 10,000 penalty | Register as part of company setup |
| Not filing because tax is 0% | Returns are due even when no tax is payable | File within 9 months of each period end |
| Wrong financial year-end | The year-end sets every deadline | Check it before registering |
| Assuming free zone means no tax | Free zone businesses are subject to corporate tax | Register and confirm Qualifying Free Zone Person conditions |
| Claiming Small Business Relief without checking | Revenue of AED 3 million or less; exclusions apply | Check revenue and exclusions each period |
| Missing the VAT threshold | Mandatory over AED 375,000 | Test past and expected turnover monthly |
| Mismatched names across documents | FTA sends applications back | Align license, passport and Emirates ID |
| Signatory without proof of authority | FTA needs evidence | Prepare a POA or board resolution |
| EmaraTax access held by one ex-employee | Lockout risk | Give access to at least two people |
| Old VAT refunds left unclaimed | Five-year limit since 2026 | Review and claim in time |
If you've already registered late
The FTA waives the AED 10,000 late registration penalty if you file your first return or annual declaration within seven months of the end of your first tax period, and credits back penalties already paid by qualifying taxpayers. Register now and plan that first return early.
Free zone companies: the special case
The UAE government portal says corporate tax applies to free zone businesses, with incentives for those that meet regulatory requirements and don't conduct business on the mainland. Qualifying Free Zone Person status depends on conditions met in every period, and these companies can't claim Small Business Relief. Get your accountant or tax agent to confirm your status each year.
Build a simple tax calendar
- Incorporation date + 3 months: corporate tax registration.
- Each month: check the VAT threshold.
- Each VAT period: file the VAT return.
- Financial year-end + 7 months: first return, to secure the penalty waiver if you registered late.
- Financial year-end + 9 months: corporate tax return and payment.
We add these dates to your company's renewal calendar alongside the license, visas and insurance. See our guides on how to register for corporate tax and FTA updates.
Sources
- Ministry of Finance: AED 10,000 penalty for late corporate tax registration
- FTA: waiver of the late corporate tax registration penalty
- FTA: corporate tax returns within nine months of the tax period end
- FTA: Small Business Relief
- UAE government portal: corporate tax
- Federal Tax Authority: registration for VAT
- Ministry of Finance: VAT law amendments from January 2026
Official sources checked on 7 November 2026. This guide explains published rules in plain English and is not legal or tax advice. Rules change; we check the current position for your case before you act.