This is a booming era for the United Arab Emirates thanks to the economic stability. Therefore, from the lottery licensing to the digital nomad residency, things are transforming for the good. Ease in taxation and reporting, like UAE corporate tax in the is creating new financial opportunities.
UAE authorities are fighting the financial crimes, by enforcing the anti money laundering and anti terrorism financing measures. Both the businesses and individuals have to know the filing procedure of the corporate tax in the UAE. Business consultancy and audit firms in Dubai can help you in the registration for taxation big time.
United Arab Emirates is following the rules for global trade set by the Organisation for Economic Co-operation and Development (OECD). Implementation of corporate tax in the UAE is solidifying its position as a hub for international trade and investment. Also, the UAE government is implementing the regulations of the Financial Action Task Force (FATF).
UAE corporate tax registration deadlines to avoid fines
Businesses must take note of the UAE corporate tax registration deadlines of 2025. The Federal Tax Authority (FTA) of the United Arab Emirates has given a reminder to enterprises in this regard. It is part of the FTA’s efforts to streamline tax administration and ensure compliance in the UAE’s corporate sector.
UAE Cabinet’s Decision No. 3 of 2024 outlines the application submission timeline for registration of taxable persons for corporate tax. It does so as per the Article 51 of the Corporate Tax Law of the UAE. Juridical persons have to register for corporate tax according to the months they get approval of business licenses.
- Timelines of corporate tax registration for UAE resident companies
- Timetable of corporate tax registration for non resident juridical persons
- Timeframe of corporate tax registration for natural persons
Now, take a brief look on these.
Timelines of corporate tax registration for UAE resident companies
UAE corporate tax registration deadlines are dependent on the original month of the resident company incorporation. It ensures consistency for businesses in the UAE which are established in the same months. These are the timelines of corporate tax registration for UAE companies built by resident juridical persons.
| Company License Issuance Month | Corporate Tax Registration Application Deadline |
|---|---|
| January or February | 31 May 2025 |
| March or April | 30 June 2025 |
| May | 31 July 2025 |
| June | 31 August 2025 |
| July | 30 September 2025 |
| August or September | 31 October 2025 |
| October or November | 30 November 2025 |
| December | 31 December 2025 |
Remember, the year of the license issuance is irrelevant. Also, the date of earliest issuance holds significance in the case of multiple licenses.
Timetable of corporate tax registration for non resident juridical persons
Timelines of the non-resident juridical persons are dependent on their status in the UAE. They can determine their status on the existence of their Permanent Establishment (PE) or the nexus. Accordingly, they have to follow this timeline to submit the tax registration applications with the FTA.
| Categories of Non Resident Juridical Persons | Timeline to apply for Corporate Tax Registration |
|---|---|
| Person having a PE before 1 March 2025 | 9 months from the date of existence of the PE |
| Person having a Nexus before 1 March 2025 | 3 month starting from 1 March 2025 |
| Person having a PE on or after 1 March 2025 | 6 months from the date of existence of the PE |
| Person having a Nexus on or after 1 March 2025 | 3 months from the date of establishment of the nexus |
Timeframe of corporate tax registration for natural persons
Natural persons performing business activities in the UAE exceeding the AED 1 million threshold have to register for corporate tax. Also, its terms are dependent on their residency status in the UAE. Eligible natural persons have to submit tax registration application to the FTA as per these deadlines.
| Categories of Natural Persons | Deadline to apply for Corporate Tax Registration |
|---|---|
| Resident Persons | 31 March of the year where business activities took place |
| Non-Resident Persons | 3 months from the date of becoming subject to tax |
UAE corporate tax registration process on EmaraTax portal
Businesses and juridical persons meeting the criteria by the Federal Tax Authority (FTA) must register for corporate tax in UAE. Finalize your annual accounting records and prepare the necessary documents. Create an account on the EmaraTax portal to become a taxable person, and follow this step-by-step process.
Now, we look upon these steps of filing the corporate tax in the UAE.
Entity Details
The smart form simplifies entity registration by providing pre-populated fields to avoid errors and ensure accurate information. It allows selecting the appropriate entity type and sub-type, from the two options. However, it currently only allows registration for the two options.
- Legal Person – UAE Public Joint Stock Company
- Legal Person – UAE Private Company (incl. an Establishment)
You have to follow these steps.
- Log in to the official website for accessing the EmaraTax portal.
- Choose your desired taxable person (natural person or a legal person), and select an existing entity from the list.
- Access the “Corporate Tax Tile” on the “Taxable Person Dashboard” and click on “Register” on the “Corporate Tax Registration” bar.
- Review the “Instructions and Guidelines Page”, which outlines eligibility criteria, necessary documents, and key information for the accurate application.
- Click on “Start” to begin the process, and provide company details and documents, to support the information in the application.
- Eligible file types for the supporting documents are PDF, DOC, and DOCX, with a size limit of 15MB.
- Save your application as draft (so that you can return to it later to make any necessary changes).
- After completing all mandatory fields, click “Next Step” to save and proceed further.
Identification Details
In this section, the Registration Assistant allows users to easily upload their Main Trade License details. For example, commercial name, license number, issuing authority, issue date, expiry date. Also, it includes legal name in English and Arabic, and trade name in English and Arabic.
Meanwhile, in the second sub-section, you need to provide a brief description of the primary business activities. For instance, Main Industry, Main Group, Sub-Group, Activity, and Activity Code, and whether owner(s) hold more than 25% of ownership. Moreover, it mentions any branches of the foreign parent company operating within the UAE.
Contact Details
To obtain a trade license in the UAE, provide the complete contact information of your business. It includes country, building name, street, area, city, and preferable contact details (mobile number, landline number, email address). In case, you are a natural person, provide your house address details matching the trade license information.
Authorized Signatory
This registration shortcut simplifies the process of uploading all such necessary information, contact details, and documents for an authorized signatory.
- First and last name
- Mobile number or landline number
- Email address
- Passport(s) of the owner(s) who own at least 25% of the shares
- Copy of the front and back side of the valid Emirates ID for the UAE residents
- Source of authorization, such as a power of attorney or memorandum of association
Review and Declaration
Ensure all information given is complete and accurate, by making all necessary corrections or additions. Once fully satisfied, submit your registration details through the EmaraTax portal. You will receive a confirmation message or notification, signaling your registration is successfully done.
Necessary documents for registering UAE corporate tax
You need to complete the legal paperwork and submit these documents for filing corporate tax in the UAE.
- Emirates ID
- Photocopy of the passport
- Contact information of the concerned person
- Copy of the trade license
- Company contacts details, address and P.O. details
- Memorandum of Association (MOA) or Power of Attorney (POA)
- Annual financial audit report
Additional documentation requirements may apply depending on the company’s structure, or if it is a foreign company.
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Eligibility criteria for UAE corporate tax for businesses
United Arab Emirates requires businesses, local/foreign judicial persons, and natural persons taking part in business to register for corporate tax. Natural persons with taxable income over AED 375,000 are subject to a 9% corporate tax rate in the UAE. Whereas, those natural persons earning less than 375,000 Dirhams are exempt from the corporate tax in the UAE.
You get a tax registration number after the approval of the application. Corporate tax returns are due for filing within nine months of the effective end date. Exempt cases from the corporate tax have to file the returns on the 0% rate with the FTA.
Corporate tax for UAE freelancers and influencers
The digital businesses are transforming the corporate ecosystem of the United Arab Emirates. Technology-driven people are earning valuable income with freelancing and remote work. Implementation of the corporate tax for UAE freelancers and influencers is a hot topic.
United Arab Emirates is known for its ease of doing business in the MENA region and globally. Implementation of the tax-friendly regime is boosting the economic prospects of the UAE. Low rate of the corporate tax for UAE freelancers is highly rewarding for the remote workers and social media influencers.
Both freelancers and influencers have flexibility in tax registration and compliance with the authorities. People working from home have to better understand the enforcement of this new taxation in the United Arab Emirates. This blog provides a comprehensive overview of the corporate tax for UAE freelancers and influencers.
Considerations for corporate tax for UAE freelancers
These are some important things to consider to understand the impact of corporate tax for UAE freelancers and influencers.
- Understanding tax status
- Income threshold for eligibility
- Monitoring of valid earnings
- Timeline for registration
- Maintenance of records
Now, we briefly look upon these considerations.
Understanding tax status
Properly identify your tax status in the UAE, by understanding the distinction between natural persons and juridical entities. Because, the AED 1 million earning threshold is only applicable to the freelancers and influencers operating as the natural persons. Freelancing professionals and influencers operating as juridical entities are subject to corporate tax irrespective of the income threshold. It directly affects your tax obligations in Dubai and the broad UAE.
Income threshold for eligibility
Annual revenue of AED 1 million (USD 272,257) is an important threshold in terms of corporate tax eligibility. Freelancers and influencers earning over AED 1 million per year are bound to pay corporate tax in the UAE. Whereas, freelance professionals making less than AED 1 million annually are exempt from the UAE corporate tax.
Monitoring of valid earnings
Authorities evaluate all types of earnings by the freelancers and influencers for the purpose of tax calculation. For example, social media activities, paid articles, sponsored posts, video shout-outs, brand endorsements, vlogs, etc. So, it is crucial to account for every penny that you earn through freelancing, or influencer marketing.
Timeline for registration
Freelancers and influencers generating over AED 1 million annually must register for corporate tax by 31st March of next year. This system helps independent freelance workers to assess and fulfill their tax obligations on their income levels before time. AED 1+ million earnings till 31st December 2024 require freelancing professionals to register for CT by 31st March 2025.
Maintenance of records
Using good accounting practices and maintaining of accurate records after is vital for adhering to tax regulations. Likewise, it is necessary for maximizing potential tax benefits in the UAE. As, it serves as a financial diary, saving time and reducing future bookkeeping and accounting reporting hassle.
Other deliberations for corporate tax for UAE freelancers
Here are some more things to contemplate for the corporate tax for UAE freelancers and influencers.
Next, we take a look on these deliberations.
Taxable income calculation
Knowing the mechanism of the calculation of the taxable income is crucial for freelancers and influencers in the UAE. Offset the legitimate business expenses from the deductible costs to determine the actual taxable income. Even if the taxable income exceeds AED 1 million threshold, 0% rate on the first AED 375,000 is available. Salary withdrawals, even if done at arm’s length, are not deductible when calculating the taxable income for sole proprietorship.
Revenue source and platform diversity
UAE’s revenues driven by freelancing, remote working, and social media influencing make a significant part of its digital economy. The income of social media influencers from brand endorsements, sponsoring content, and other social networking activities is liable for tax purposes. Also, platform diversity is important, as earnings from mediums like Instagram, YouTube, and TikTok combine.
Small business relief program
UAE’s small business relief program rewards freelancers with annual turnovers over AED 1 million, but under AED 3 million. If they keep proper accounting records of their earnings, they can qualify for this relief. Also, this program is very beneficial for many qualifying influencers in the UAE.
FTA treats freelancers and influencers meeting revenue requirement as not having taxable income for the relevant tax period. Accordingly, it leads to substantial tax savings for those who qualify. However, once their turnover passes AED 3 million, they have to submit the corporate tax in the future.
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Benefits of the UAE CT filing for freelancers/influencers
The UAE government has come up with a freelancing visa in response to the global rise in remote work. Dubai freelance permit is very appealing to Emirati nationals and expatriates having the desire for self-employment. Abu Dhabi freelancer license offers flexibility, legal compliance, and the freedom to work in a dynamic business environment.
UAE residency for freelancers and influencers fully supports creativity and innovation. It provides a straightforward way to operate independently, while accessing the powerful infrastructure and global connections of the UAE. These are the advantages for freelancers and influencers in the UAE.
- Be your own boss
- Easy to register
- No local sponsor requirement
- More money-making prospects
- Going virtual is possible
- Less administrative burden
Let us discuss the rewards that freelancers and influencers get in the UAE.
Be your own boss
Freelancing visa in the UAE allows techie professionals to set their own work schedule. It gives them freedom to live anywhere within Dubai or the UAE, enabling them to choose their work location. Subsequently, they can sponsor their family members, to obtain the UAE residency, providing stability and access to essential services.
Easy to register
The application process for a freelance visa in the UAE is less complex than other visa types. This makes it accessible for professionals looking to start or expand their freelancing careers in Dubai and throughout the UAE. On top of this all, corporate tax on UAE freelancers is very reasonable as well.
No local sponsor requirement
Freelance visa in the UAE offers a unique opportunity for individuals to work independently without a local sponsor. It provides freelancers greater control over professional activities and business decisions. Also, no need of local sponsorship means reduction in operational costs for influencers.
More money-making prospects
The dynamic market of the UAE presents many opportunities to capitalize on for the revenue generation. Freelancers and influencers can take on several clients at the same time. They can onboard multiple projects simultaneously for increasing their income in Dubai and across the UAE.
Going virtual is possible
Many freelancers do not require any physical corporate workplace. It empowers freelancers and influencers to work from home. Or, they can run operations from any other location that suits their work style, like co-working spaces as well.
Less administrative burden
Freelancers and influencers often have fewer obligations concerning bookkeeping. Consequently, it reduces administrative burden on them in the terms of financial reporting. Therefore, it allows them to focus more on their work, rather then remaining busy in regulatory compliance.
Conclusion
UAE’s federal tax authority approves, rejects, or requests re-submission of a corporate tax registration application after the filing. The tax regulatory authority of the UAE sends an email notification, if additional information is necessary. FTA duly informs the applicant and updates the application status on the dashboard.
Taxation consultancy firms in Dubai provide corporate tax registration services to help companies comply with the UAE laws. By utilizing these services, businesses can minimize legal risks, maintain compliance, and efficiently negotiate tax difficulties. Connect with KWS Middle East to ensure proper UAE taxation, regulatory reporting, and prevention of financial penalties.
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FAQs about the UAE corporate tax
These are the answers to the common questions regarding the corporation tax in the UAE.
What is the corporate tax rate in the UAE?
The following is the criteria for the corporate tax rate in the UAE with the applicable thresholds.
– If the annual taxable income exceeds AED 375000, the company is subject to 9% corporate tax rate.
– In case, the yearly taxable income stays below AED 375000, then the company is liable to 0% corporate tax.
– Big multinational enterprises (MNEs) under the BEPS 2.0 framework’s Pillar 2 are liable to 15% DMTT/GMT rate
How much is the penalty on not registering for the UAE corporate tax?
Businesses in the UAE face a fine of AED 10,000 for non-compliance with corporate tax registration. This penalty under the UAE’s taxation regulations came into enforcement starting from 1st March 2024. UAE Cabinet’s Decision No. 10 of 2024 empowers FTA to impose this hefty fine (equaling to USD $2,722).
What is the fine on late corporate tax filing in the UAE?
The UAE applies a penalty of AED 1000 to 10,000 on late filing of corporate tax for the first time.
Do freelancers need to register for corporate tax in the UAE?
United Arab Emirates considers the freelancers as conducting business activities. So, the federal tax authority (FTA) deems their income in the UAE taxable. If their income passes AED 1 million annual threshold, they have to register for corporate tax.
What is the tax rate for freelancers in UAE?
United Arab Emirates considers the freelancers as professionals running business operations. So, a 9% corporate tax rate is applicable on the UAE freelancers generating over AED 1 million annually. However, freelancers surpassing AED 3 million annual income and maintaining all records are eligible for small business relief program.
Do contractors pay tax in the UAE for foreign virtual staff?
Contractors are responsible for their own tax obligations for the offshore staff, allowing employers to avoid withholding taxes. However, the businesses should understand the UAE taxation regulations in detail. Also, they must ensure that they have the necessary paperwork for the tax compliance in their home country.
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