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Action Required
Up to AED 10,000 for late registration + tax penalties. Non-compliance is not an option — Elite ATS can get your business fully compliant quickly and affordably.
Overview
The UAE Federal Corporate Tax (CT) at 9% on taxable income above AED 375,000 is now fully in effect — making the UAE one of the most competitive tax jurisdictions globally while aligning with international standards. Every mainland and free zone company must register with the FTA and file an annual CT return. Failure to comply results in significant financial penalties.
What Has Changed in 2026?
- 9% CT applies to taxable income exceeding AED 375,000 per financial year
- All UAE businesses (mainland and free zone) must register with the FTA for CT
- Annual CT return must be filed within 9 months of financial year end
- Tax payable is due at the same time as the return filing deadline
- Free zone companies can qualify for 0% on Qualifying Income — subject to strict conditions
- Small Business Relief available for businesses with revenue under AED 3 million
- Transfer pricing rules apply to related-party and connected-person transactions
- Financial statements must be prepared under IFRS or another acceptable standard
Who Is Affected?
This regulation applies to: All UAE mainland companies (LLCs, sole establishments, civil companies), Free zone entities — even those on 0% CT must register and file, Foreign companies with a Permanent Establishment (PE) in the UAE — and more. See full list below.
Who Is Affected?
- All UAE mainland companies (LLCs, sole establishments, civil companies)
- Free zone entities — even those on 0% CT must register and file
- Foreign companies with a Permanent Establishment (PE) in the UAE
- Individuals earning business income above the threshold
- Banking, insurance, and financial services businesses
Exemptions
- UAE government entities and government-controlled entities
- Businesses engaged in extraction of UAE natural resources (subject to Emirate-level tax)
- Qualifying Public Benefit Entities
- Investment funds meeting specific criteria
- Pension and social security funds
Penalties for Non-Compliance
- AED 10,000 — failure to register for CT
- AED 500/month (first 12 months) + AED 1,000/month thereafter — late filing
- 9% interest per annum on unpaid tax
- 50%–300% of unpaid tax — tax evasion penalties
- AED 20,000 — failure to maintain proper records
Implementation Timeline
June 2023
CT effective for financial years beginning on/after this date
Dec 2023
First CT returns due for companies with Jan–Dec financial year
Sep 2024
Registration deadline enforcement — penalties active
2025–2026
FTA CT audits increasing — compliance review essential
How Elite ATS Helps You Comply
- CT registration with FTA
- Taxable income computation and tax calculation
- Free Zone Qualifying Income analysis (0% vs 9% determination)
- Small Business Relief eligibility assessment
- Transfer pricing documentation
- Annual CT return preparation and FTA submission
- IFRS-compliant financial statements for CT purposes
- FTA correspondence and query resolution
With 5+ years of UAE-specific regulatory experience, our team handles every aspect of your compliance — so you can focus on running your business with complete peace of mind.