Blog Single
21
Sep

UAE Corporate Tax Deadlines 2025: Your Definitive Compliance Guide & Checklist

 

The UAE’s introduction of a federal Corporate Tax (CT) marked a seismic shift, transforming the financial landscape for every business operating within the Emirates. As we approach 2025, proactive compliance is no longer optional—it is critical. At Brainciti, we provide clarity on the key dates, penalties, and strategic compliance mechanisms under Federal Decree-Law No. 47 of 2022.

 

1. The Critical Deadline: Decoding the 9-Month Rule

The foundation of UAE CT compliance is the 9-month rule. Every Taxable Person is required to file their Corporate Tax Return and pay any tax due within nine months following the end of their financial year.

 

🗓️ Key CT Filing & Payment Deadlines for 2025

Your specific deadline depends entirely on your business’s financial year-end (FYE):

Financial Year End (FYE)Tax Period Covered
December 31Jan 1, 2024 – Dec 31, 2024
March 31Apr 1, 2024 – Mar 31, 2025
June 30Jul 1, 2024 – Jun 30, 2025

2. Mandatory Registration: Avoiding the AED 10,000 Penalty

Before a return can be filed, the business must be registered with the Federal Tax Authority (FTA) via the EmaraTax portal and possess a Tax Registration Number (TRN). Failure to register by the FTA’s stipulated timeline results in an administrative penalty of AED 10,000.

 

🔑 Who Must Register?

  • Juridical Persons (Companies): Deadlines vary based on the license issuance date. Proactive registration is key to avoiding the AED 10,000 fine.
  • Natural Persons (Sole Proprietors/Individuals): Individuals operating a business must register if their annual turnover exceeds AED 1 million in a calendar year. For those who crossed this threshold in 2024, the registration deadline was March 31, 2025.

 

⚠️ Late Registration Waiver (Temporary Relief)

The FTA offered a temporary lifeline: businesses that missed their initial registration deadline could still avoid the AED 10,000 penalty if they subsequently registered and submitted their first CT return or declaration within seven months of their first tax period end. Check your eligibility immediately!

 

3. Corporate Tax Rates and Relief Mechanisms

 

Taxable Income / Entity TypeApplicable Rate
Taxable Income up to AED 375,0000%
Taxable Income exceeding AED 375,0009%
Qualifying Free Zone Persons0% on Qualifying Income (if strict conditions are met)

📉 Small Business Relief (SBR)

 

Businesses with annual revenue (not profit) under AED 3 million may elect for Small Business Relief. If eligible, they are treated as having zero Taxable Income, significantly simplifying compliance. However, they are still required to register and file a simplified tax return on time.

 

4. Digital Accounting and Compliance Checklist

Taxable income is calculated based on your accounting net profit (adjusted according to IFRS/FTA rules). Robust financial data is the bedrock of compliance.

 

Checklist your CT Readiness Plan:

 

  1. Finalize Financial Statements: Ensure accounts for the relevant tax period are closed and prepared in compliance with IFRS.
  2. Calculate Taxable Income: Apply all required adjustments (e.g., non-deductible expenses like fines/penalties, exempt income like qualifying dividends) to your accounting profit.
  3. Transfer Pricing (TP) Documentation: Businesses with related-party transactions (especially those exceeding the revenue threshold) must ensure compliance with the Arm’s Length Principle and prepare the necessary TP documentation.
  4. Record Retention: Retain all financial and tax-related documents for a minimum of seven years following the end of the Tax Period.
  5. Use EmaraTax: File the return and make the payment simultaneously through the FTA’s electronic platform well before the 9-month deadline.

 

5. Penalties for Non-Compliance

 

ViolationPenalty (AED)
Failure to submit CT Registration by deadline10,000
Late filing of CT Return (initial 12 months)500 per month
Late filing of CT Return (from 13th month)1,000 per month
Late payment of tax due1% of unpaid tax per day (14% per annum, calculated monthly)

 

The FTA enforces strict penalties for both late filing and late payment:   

Don't leave compliance to chance. The complexities of Free Zone compliance, transfer pricing rules, and available tax reliefs require expert guidance. Brainciti is here to ensure your transition to the new tax regime is compliant and strategically sound.

 Contact Brainciti today for a comprehensive corporate tax compliance review.