UAE’s Corporate Tax Deadlines and Compliance for 2025

Stay informed about the UAE’s corporate tax deadlines, compliance requirements, and potential penalties in 2025. Learn key steps to ensure timely registration and avoid fines.

By Sudhanshu Singh

The UAE’s corporate tax framework, introduced under Federal Decree-Law No. 47 of 2022, has established mandatory tax registration requirements for both natural and juridical persons conducting business activities in the country. The Federal Tax Authority (FTA) has outlined a structured compliance schedule, with the March 31, 2025, deadline set for natural persons and staggered deadlines for companies based on their incorporation dates. Failure to register within the prescribed timeframe results in an administrative penalty of AED 10,000 (US$2,722.5).

This article provides a structured breakdown of the corporate tax registration deadlines, compliance challenges, applicable laws, and key steps businesses must take to ensure timely tax registration and avoid penalties.

Corporate tax registration deadlines: Who needs to register and when?

Natural persons conducting business activities

Natural persons (individuals engaged in business or professional activities) must register for corporate tax if their annual turnover exceeds AED 1 million (US$272,225). The tax registration deadline is March 31, 2025, for those exceeding this threshold in 2024. For individuals meeting this threshold in future years, the deadline will be March 31 of the following year.

Failure to register by the due date incurs a penalty of AED 10,000 (US$2,722) as per FTA guidelines on administrative penalties.

UAE resident juridical persons (corporates) registered before March 1, 2024

The FTA has assigned staggered tax registration deadlines based on the commercial license issuance date:

Entities without a commercial license as of March 1, 2024, must register within three months from this date.

UAE resident juridical persons (corporates) incorporated after March 1, 2024

For newly incorporated businesses, Federal Tax Law No. 47 of 2022 specifies that corporate tax registration must be completed within three months of incorporation.

Non-resident juridical persons

Non-resident businesses that have a Permanent Establishment (PE) or POEM in the UAE must register as follows:

Compliance confusion: Challenges businesses are facing

While the corporate tax law and its implementing decisions set clear deadlines, many businesses are struggling with ambiguities and overlapping compliance requirements. One major source of confusion stems from Federal Decree-Law No. 47 of 2022, which mandates tax registration but does not automatically link it to VAT registration, leading to cases where VAT-registered businesses incorrectly assume they are also registered for corporate tax. The FTA has issued clarifications, stating that VAT and corporate tax are independent registrations requiring separate submissions.

Additionally, free zone companies face uncertainty regarding their 0 percent tax treatment under Article 18 of Federal Decree-Law No. 47 of 2022. While free zone entities benefit from a tax exemption, they must still register and file annual tax returns. Many small businesses in free zones remain unaware of these compliance obligations.

Another area of confusion concerns foreign companies with a POEM in the UAE. The FTA clarifies that non-resident businesses with decision-making authority in the UAE are subject to tax registration within three months of their financial year-end, even if they lack a UAE commercial license. Many offshore companies remain unaware of this requirement.

Businesses must also update their tax records within 20 days of any changes in ownership, trade licenses, or activities, as per FTA compliance regulations. However, many entities struggle to interpret whether minor changes (such as adding a secondary business activity) require an update with the FTA.

Penalties for late registration and non-compliance

As per FTA administrative penalty guidelines, failure to register for corporate tax within the stipulated deadline results in a penalty of AED 10,000 (US$2,700). Additional penalties for non-compliance include:

The FTA has allowed a grace period until March 31, 2025, for businesses to rectify errors and update records without penalties.

How businesses can streamline corporate tax compliance

To efficiently comply with UAE’s corporate tax framework, businesses should take the following steps:

• Identify applicable registration deadlines based on their entity classification under Federal Decree-Law No. 47 of 2022;
• Submit registrations via the EmaraTax portal and ensure all tax records are up to date;
• Monitor FTA notifications and compliance circulars to stay updated on changes; and
• Engage professional tax consultants to navigate compliance complexities, especially for free zone companies and foreign businesses with POEM in the UAE.

Future outlook

The UAE’s corporate tax framework has introduced strict compliance deadlines and penalties, requiring businesses to register within prescribed timeframes. Companies must stay updated on FTA circulars, compliance guidelines, and Federal Decree-Law No. 47 of 2022 to ensure compliance.

With the March 31, 2025, deadline for natural persons and staggered deadlines for corporates, businesses must proactively register, maintain accurate records, and seek professional advisory support to avoid penalties and ensure smooth tax operations.

Explore more on UAE taxation:

• UAE Corporate Income Tax
• Tax incentives in the UAE
• Major Changes in UAE VAT Regulations: Key Takeaways

(US$1 = AED 3.6725)

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