The UAE Corporate Tax regime is new (launched from June 1, 2023), and businesses need to keep an eye on important deadlines and compliance steps in 2025. This guide breaks things down clearly:
What is UAE Corporate Tax?
Starting June 1, 2023, the UAE introduced a 9% corporate tax rate on profits above AED 375,000. Free‑zone companies doing qualifying activities may enjoy a 0% tax rate, but only if they meet substance requirements.
Who Must Register?
All taxable businesses, including natural persons with turnover over AED 1 million, must register for corporate tax. The Federal Tax Authority (FTA) required natural persons to register by 31 March 2025 for activities in the 2024 calendar year.
Registration Deadlines
- Natural Persons (sole proprietors, etc.) with turnover > AED 1 million in 2024: register by 31 March 2025.
- Companies: must register when incorporated or when turnover passes the threshold (via EmaraTax platform).
Filing and Payment Deadlines
Standard Corporate Tax Return
The general deadline for both filing the corporate tax return and paying any tax due is within 9 months of the end of your financial year.
- Example: If your financial year ends 31 December 2024, the deadline is 30 September 2025.
- For a 31 March 2025 year-end, the deadline shifts to 31 December 2025.
First-Time Filers
Special rules apply depending on incorporation date:
- Companies incorporated before 1 June 2023 with year-end 31 Dec 2023 must file by 30 Sept 2025.
- Incorporated on or after 1 June 2023 (e.g. 1 Aug 2023): first tax return due by 30 Sept 2025, covering the full first tax period.
Note: FTA extended deadlines for companies set up after 1 June 2023, moving some filing deadlines from 2024 to 31 December 2024; but in all cases, the 9‑month rule applies to future periods.
Transfer Pricing and Audit-Readiness
By 30 September 2025, businesses must also complete:
- Tax audit,
- Transfer Pricing adjustments,
- Related Disclosure Forms (for related‑party transactions)
Penalty Waiver for Late Registrants
Businesses that register late may still avoid penalties if they file by 31 July 2025.
Advance Payments – Not Required
Unlike some countries, UAE Corporate Tax does not require provisional or quarterly advance payments. Everything is settled at year-end.
Summary Table
| Deadline | Applies To | What’s Due |
|---|---|---|
| 31 Mar 2025 | Natural persons (turnover > AED 1M) | Corporate Tax Registration |
| 30 Sept 2025 | Year-end 31 Dec 2024 businesses | Tax return & payment + audit & transfer prep |
| 31 July 2025 | Late registrants | Return to waive penalties |
| 31 Dec 2025 | Year-end 31 Mar 2025 businesses | Tax return & payment |
These deadlines are firm. Missing them could mean administrative penalties, audit notices, or interest.
How to Stay on Top of Compliance
- Mark calendar reminders for the 9-month rule after your year-end.
- Keep clean records and prepare audit-ready statements. FTA requires records for 7 years.
- Track related-party transactions and file Transfer Pricing forms if relevant.
- Use EmaraTax for online filing and payment.
- Get expert help for free‑zone rules, substance requirements, and tax optimization.
Why You Should Care
Missing the registration or filing deadlines can lead to penalties (e.g., AED 10,000 for non-registration of natural persons). Meeting deadlines keeps your business compliant and avoids fines.
What’s Changing in 2025?
- A 15% global minimum tax for large multinationals starts January 2025.
- Potential new tax credits for R&D or high-value jobs, likely from 2025–2026.
- Free‑zone businesses must maintain substance (office, staff, activities) to keep 0% rate.
Final Takeaway
UAE Corporate Tax in 2025 is all about staying organized and proactive. Mark your deadlines (31 Mar, 31 Jul, 30 Sep, 31 Dec), keep tight records, and get ready for audits and transfer pricing reviews.
Need Help? Talk to Smart Zone
Smart Zone is a leading business setup and tax consultancy in Dubai. We help with:
- Corporate Tax registration & filing
- Audit & transfer pricing prep
- Free‑zone substance guidance
- New incentive Dealing
Let Smart Zone handle the tax details so you can focus on growing your business, without missing a beat or a deadline.
Visit https://smartzone.ae/ today and book a free consultation.
Get in Touch Today:
📞 Call Us: +971 58 541 7444
📧 Email Us: info@smartzone.ae
