Corporate tax in the UAE is no longer a new obligation — it is an actively enforced compliance regime with an expanding audit programme, a mature penalty structure, and a Federal Tax Authority that now cross-references corporate tax returns against VAT filings, customs records, and banking data with increasing analytical precision. Businesses that filed their first return in 2024 are now approaching their second, and the FTA’s ability to identify year-on-year anomalies is growing with every additional year of data it holds. Risians Accounting and Tax Consultancy is a Dubai-based, FTA-registered tax agent and DMCC-approved auditor providing the full corporate tax compliance cycle for UAE businesses — from initial registration and annual assessment through return filing, transfer pricing documentation, QFZP compliance for free zone entities, and FTA audit support. Our clients are mainland SMEs, DMCC and DIFC free zone entities, and UAE subsidiaries of international groups. We provide the depth of expertise that the UAE corporate tax framework requires and the FTA representation authority that most accounting firms in Dubai do not hold.
For businesses filing their first UAE corporate tax return, the complexity is front-loaded: first-year elections that cannot be undone must be identified and made correctly, the transitional relief for pre-CT assets must be evaluated, and the taxable income reconciliation must be built from scratch with no prior-period comparatives to anchor it. For businesses on their second or third return, the challenge has shifted to consistency — ensuring that positions taken in prior returns are maintained correctly, that transfer pricing documentation is current, and that any FTA Public Clarifications issued since the last return have been applied. Risians manages both stages with equal rigour, and the documentation standard we apply to every return is built on the assumption that the FTA will examine it.
Corporate tax in the UAE has matured from a new obligation into an actively enforced compliance regime. As businesses file their second and third annual returns, the Federal Tax Authority is expanding its data analytics capabilities, cross-referencing corporate tax returns against VAT filings, customs records, and banking transactions to identify inconsistencies. Transfer pricing is now the FTA’s declared primary enforcement tool to prevent profit-shifting. The Domestic Minimum Top-up Tax of 15% applies from 2025 for multinational enterprise groups above EUR 750 million in global revenue. And the new penalty regime effective April 2026 means that voluntary disclosures made before FTA detection carry significantly lower penalties than errors found during audit. For UAE businesses in 2026, the cost of getting corporate tax wrong is higher than at any point since the regime began.
The UAE corporate tax regime came into effect for financial years starting on or after 1 June 2023. For the first time in the history of the UAE, businesses across all seven emirates must register with the Federal Tax Authority, calculate their taxable income in accordance with Federal Decree-Law No. 47 of 2022, and file annual corporate tax returns through the EmaraTax portal. Every limited liability company, free zone entity, sole establishment above AED 1 million in annual turnover, and branch of a foreign company is now in scope.
The headline 9% rate does not tell the full story of UAE corporate tax. Taxable income below AED 375,000 is taxed at 0%. Qualifying Free Zone Persons can benefit from a 0% rate on qualifying income — but only if they actively maintain that status every year. Businesses below AED 3 million in revenue can elect Small Business Relief. Multinational groups above EUR 750 million in global revenue face a 15% Domestic Minimum Top-up Tax from 2025. Related-party transactions must be priced at arm’s length with documentation. First-year elections that cannot be undone must be identified and made correctly. The UAE corporate tax framework rewards those who engage with it properly — and penalises those who file inaccurately or late.
One of the most consequential and least understood elements of UAE corporate tax is the interaction between first-year elections and the ongoing tax position. The realization basis election for capital gains — available only in the first return — allows a business to exclude unrealised gains from taxable income. For businesses holding significant property or investment assets, this election can defer substantial tax liability. The transitional relief election for pre-CT immovable property and certain intangible assets allows businesses to exclude gains accrued before the CT regime began, calculated on a straight-line basis. These elections are permanent once made — or permanently lost if not made in the first return. Risians identifies every available first-year election for every new client and provides a written recommendation on each before the first return is filed.
The 9% corporate tax rate is the starting point for understanding UAE corporate tax, not the ending point. Taxable income is not accounting profit — it is accounting profit adjusted for non-deductible expenses, exempt income, available reliefs, and elected treatments. The interest deduction limitation caps deductible interest at 30% of EBITDA for businesses above AED 12 million in interest per year. Entertainment expenses are capped at 50%. Related-party payments above arm’s length rates are disallowed entirely. Capital gains on qualifying shareholdings may be exempt under the participation exemption. Losses can be carried forward to offset up to 75% of future taxable income but cannot be carried back. Small Business Relief may be available but electing it forfeits loss carry-forward rights for that period. These are not edge-case considerations — they apply to most UAE businesses and materially affect the taxable income calculation. Risians analyses every one of these adjustments for every client before every return is filed.
Risians Accounting & Tax Consultancy is a Dubai-based, FTA-registered tax agent and DMCC-approved auditor providing the full corporate tax compliance cycle for UAE businesses — from initial registration through annual returns, tax assessments, and FTA audit support. We serve mainland SMEs, DMCC and DIFC free zone entities, and UAE subsidiaries of international groups.
UAE corporate tax is a new regime and most businesses are filing their first or second return. The firms that distinguish themselves in this environment are the ones with the depth to get it right from the start — not the ones that file quickly and correct errors later.
UAE corporate tax law has changed materially since its enactment in 2022. The Domestic Minimum Top-up Tax for MNE groups, updated QFZP qualifying activity lists, revised transfer pricing documentation thresholds, the penalty waiver initiative, and new FTA Public Clarifications on expense deductibility and related-party transaction treatment are all examples of changes that directly affected client positions. The pace of regulatory development in UAE corporate tax is higher than in most mature tax jurisdictions, and the consequences of missing a change — filing on an outdated legal basis — can be material. Risians monitors every FTA Public Clarification and Ministerial Decision as it is published and advises clients proactively when a change affects their specific position. Our clients do not learn about relevant regulatory changes from news alerts — they hear about them from us, with a specific assessment of what the change means for their tax position.
Every UAE business should conduct a structured corporate tax health check before each filing period — not just when preparing the return. A health check reviews the taxable income position, tests all related-party transactions for arm’s length compliance, confirms QFZP eligibility conditions for free zone entities, identifies any new FTA Public Clarifications or Ministerial Decisions that affect the business’s position, and confirms records are maintained to the standard required for a 30-day FTA audit documentation window. Risians provides this service for all ongoing corporate tax clients as part of the annual compliance cycle. For businesses that are not current clients, a standalone health check engagement is available and typically identifies either underpayment risks or over-payment positions from prior periods.
All UAE-resident juridical persons — LLCs, free zone entities, joint stock companies, branches of foreign companies — must register and file, regardless of size, profitability, or activity level. Natural persons with UAE business turnover above AED 1 million in a calendar year are also in scope. Employment income, personal salary, and returns on personal investments are out of scope entirely.
| Taxable Income / Entity Type | Corporate Tax Rate |
| Up to AED 375,000 taxable income | 0% |
| Above AED 375,000 taxable income | 9% |
| QFZP qualifying income | 0% |
| MNE groups with global revenue > EUR 750m | 15% DMTT |
Businesses with annual revenue not exceeding AED 3 million in the current and all prior tax periods may elect SBR, treating taxable income as zero for that period. Available for periods ending on or before 31 December 2026. Not available to QFZPs or MNE group members. Electing SBR forfeits loss carry-forward rights for that period — Risians advises specifically on whether the election is appropriate given each client’s financial position.
The interaction between Small Business Relief, tax loss carry-forward rights, and multi-year financial planning is one of the most practically important areas of UAE corporate tax advisory. A business that elects SBR in its first year because it has below AED 3 million in revenue and no taxable income saves nothing in current-year tax — but forfeits the right to carry forward any losses arising in that year. If the business becomes profitable in year three and can no longer elect SBR, those forfeited losses would have reduced its taxable income and the tax payable. The decision to elect SBR is not a question of current-period liability — it is a question of multi-year financial position. Risians models this analysis for every client before recommending the election.
Returns and payment are due within nine months of the financial year end. For a 31 December year-end: 30 September deadline. Late filing: AED 500 per month for months 1–12, AED 1,000 per month from month 13. Unpaid tax: 14% per annum from due date. Records must be retained for seven years.
The nine-month filing window is shorter than it may appear. Businesses that require audited financial statements — all QFZP-claiming entities and businesses above AED 50 million in revenue — must complete the audit before the return can be finalised, since the audited statements are attached to the return and must be consistent with the taxable income figures. For a 31 December year-end business that requires an audit, the practical sequence is: audit fieldwork complete by March or April, audit report signed by May or June, corporate tax return prepared and reviewed in July and August, filing by 30 September. Each stage has a fixed dependency on the prior one. Risians plans the compliance calendar for every client at the start of each financial year and manages every deadline as a coordinated project — not a series of independent tasks.
| Violation | Penalty |
| Late registration | AED 10,000 (fixed) |
| Late filing — months 1–12 | AED 500 per month |
| Late filing — month 13 onwards | AED 1,000 per month |
| Unpaid tax from due date | 14% per annum |
| Failure to maintain records — first | AED 10,000 |
| Failure to maintain records — repeat | AED 20,000 |
| Transfer pricing documentation missing | AED 100,000–500,000 |
| FTA audit — understated tax (no prior disclosure) | 50% of understated Tax |
Risians provides end-to-end corporate tax compliance services for UAE businesses across all structures. Each service below is managed by qualified, FTA-registered professionals. Click through to each page for full detail on how we approach that specific service.
Every UAE business — including free zone entities expecting 0% tax — must register for corporate tax with the FTA. There is no exemption from the registration obligation. The AED 10,000 late registration penalty applies from the date the deadline passes, and the FTA has introduced a penalty waiver initiative for businesses that file their first return within seven months of the end of their first tax period. Risians manages the full registration process — eligibility assessment, deadline calculation based on your trade licence issuance date, document preparation, EmaraTax submission as an authorised tax agent, and TRN issuance follow-up. For businesses with multiple licences or group structures, we confirm the correct registration approach before any submission is made.
A corporate tax assessment is the analytical process of determining your exact tax liability before the return is filed — not after. It reconciles your accounting profit to taxable income, identifies deductible and non-deductible expenses (including the 30% EBITDA interest cap and 50% entertainment limit), assesses Small Business Relief eligibility, evaluates Qualifying Free Zone Person status for free zone clients, reviews all related-party transactions for arm’s length compliance, and identifies every first-year election available in your inaugural return. For most businesses filing their first UAE corporate tax return, an assessment is not optional — it is the difference between a return that is accurate and one that creates an FTA liability. Risians delivers a written taxable income calculation with the legal basis documented for every adjustment.
Risians prepares and files corporate tax returns for UAE mainland and free zone businesses through EmaraTax as an authorised FTA tax agent. Every return includes the full accounting profit to taxable income reconciliation, transfer pricing disclosure form, QFZP qualifying income schedules where applicable, SBR election documentation, and audited financial statement attachment for revenue above AED 50 million or QFZP-claiming entities. We collect financial data from your team, work through all adjustments and schedules, present the completed return for your review, and file before the nine-month deadline. Even businesses with no tax liability must file — and filing accurately and on time is the single most important thing a business can do to maintain a clean compliance record.
FTA corporate tax audits are increasing in frequency as the authority’s data analytics capabilities expand. Businesses face a standard 30-day documentation window from audit notice to information production. Risians provides pre-audit readiness reviews that identify and correct issues before the FTA does, immediate response management when a notice arrives, full documentation preparation covering financial statements, transfer pricing files, expense classification workings, and QFZP eligibility evidence, and direct FTA representation as an authorised tax agent throughout. Where the FTA issues an assessment or penalty, Risians prepares reconsideration submissions and manages escalation to the Tax Disputes Resolution Committee. The businesses that experience the best audit outcomes are those that were prepared before the audit arrived.
Free zone entities have the most complex UAE corporate tax position of any business type in the UAE. QFZP status — and the 0% rate that comes with it — requires meeting six specific conditions annually: adequate UAE substance, qualifying income from qualifying activities, non-qualifying revenue within the de minimis threshold of the lower of AED 5 million or 5% of total revenue, arm’s length related-party transactions, no standard regime election, and audited IFRS financials. Losing QFZP status means 9% on total income for five years. Risians is a DMCC-approved auditor providing integrated audit and corporate tax compliance for free zone businesses — including QFZP eligibility assessments, qualifying income classification, transfer pricing documentation, and FTA representation. If you are a free zone business, this is the service that matters most to your tax position.
Key insights into corporate tax (CT) calculation, qualifying free zone person (QFZP) status, transfer pricing mandates, and annual compliance calendars for UAE businesses.
UAE Corporate Tax is charged at 9% on taxable income above AED 375,000. Below that threshold, the rate is 0%. Here is how the calculation works in simple terms:
Step 1: Start with your accounting net profit (from your IFRS-compliant financial statements) Step 2: Add back non-deductible expenses (entertainment above 50%, personal expenses, fines, interest above the general interest deduction limit) Step 3: Deduct exempt income (qualifying dividends, capital gains on qualifying participations) Step 4: Apply any available reliefs (Small Business Relief if eligible, losses carried forward) Step 5: Apply 0% on the first AED 375,000, 9% on the balance
The tax return is due nine months after your financial year-end. For a December year-end, this means 30 September of the following year. Risians handles the full Corporate Tax Return Filing process — from calculating your taxable income to submitting on EmaraTax.
Yes. Corporate Tax registration is mandatory for all UAE entities, regardless of whether they traded, generated revenue, or made a profit. The FTA requires registration and the filing of a nil return where no taxable income arises. Failing to register or file — even for a dormant company — triggers a fixed penalty of AED 10,000 for late registration and further penalties for missed returns. Risians handles Corporate Tax Registration for all entity types including dormant, holding, and newly incorporated companies.
Free zone companies can qualify for a 0% Corporate Tax rate on qualifying income as a Qualifying Free Zone Person (QFZP). But the conditions are specific and the consequences of failing them are severe — losing QFZP status means the entire year's income is taxed at 9%, not just the non-qualifying portion. The main conditions that must all be met:
Risians conducts an annual QFZP eligibility review for free zone clients and provides specific advice through our Corporate Tax for Free Zone Companies service.
The UAE Corporate Tax Law allows deduction of all expenses "wholly and exclusively" incurred for business purposes. But certain categories are restricted or blocked:
Partially restricted:
Fully blocked:
Common misconceptions: Many business owners believe that because something was paid from a company account, it is automatically deductible. The FTA reviews expense deductibility during Corporate Tax audits, and disallowed expenses increase your taxable income retrospectively. Risians reviews your expense categories during tax planning to identify and correct disallowable items before the return is filed.
Yes, but only if the companies form a Tax Group. Under UAE Corporate Tax law, a group of UAE resident companies can elect to be treated as a single taxable entity — allowing losses in one company to offset profits in another, and eliminating intercompany transaction complexity within the group. To qualify for Tax Group status:
Risians advises on whether Tax Group consolidation makes sense for your structure and manages the election filing and ongoing group compliance.
Transfer pricing rules apply whenever your UAE business transacts with a related party — whether that party is overseas or within the UAE. Related parties include: your parent company, sister companies, subsidiaries, shareholders holding 50%+ of your shares, and directors or their family members. The core requirement is that all related-party transactions are priced as if they were between unrelated parties dealing at arm's length. This affects:
If the FTA believes transactions are not at arm's length, they adjust your taxable income upward. For businesses with revenues above AED 200 million, full transfer pricing documentation is required. For smaller businesses, contemporaneous records of how related-party prices were determined are still strongly advisable. Risians prepares transfer pricing documentation and benchmarking analysis as part of our Corporate Tax compliance work.
The FTA uses risk-based selection for Corporate Tax audits, targeting businesses where:
The FTA notifies businesses in advance of a scheduled audit — you will receive a formal notice through EmaraTax. The response window and document request timeline are set by the FTA. Risians provides Corporate Tax Audit Support — preparing the response package, attending meetings with the FTA, and managing the audit process from start to finish.
Yes — UAE Corporate Tax allows tax losses to be carried forward indefinitely and offset against future taxable income, subject to a cap of 75% of taxable income in any single year (meaning you always pay some tax if you are profitable, even with losses carried forward). Losses can only be used by the same legal entity that generated them — they cannot be transferred between separate companies unless a Tax Group election is in place. The loss must be claimed in the Corporate Tax return for the year it is generated and tracked in subsequent returns. Risians ensures losses are properly documented and carried forward correctly — it is a surprisingly common error to fail to claim losses in the year they arise, forfeiting their future value.
Sole traders and unincorporated partnerships (civil companies) are only subject to UAE Corporate Tax if their business is licensed and they earn income from a "business or business activity" in the UAE. Critically:
The line between personal investment income (exempt) and business income (taxable) is genuinely complex for high-net-worth individuals with diverse income sources. Risians conducts personal income assessments for individuals and sole traders to determine their Corporate Tax position and advise on structuring options.
The nine-month window sounds generous but disappears quickly, especially for businesses that also need audited accounts before the return can be finalised. A well-managed Corporate Tax calendar looks like this:
Businesses that wait until month 7 or 8 to start consistently face rushed, error-prone returns or missed deadlines. Risians manages Corporate Tax returns on a structured calendar — beginning with audit coordination and ending with EmaraTax submission — so nothing is left to the last month.
Your corporate tax position affects your business for years, not just the current filing period. First-year elections that cannot be undone, QFZP conditions that require year-round management, transfer pricing documentation that must exist before the FTA requests it — these are not end-of-year tasks. They are decisions and disciplines that need to be established now. Risians offers a free initial consultation where we will assess your current corporate tax position, identify your most urgent obligations, and explain exactly what your business needs to do to be fully compliant and fully protected in 2026 and beyond.
Risians Accounting & Tax Consultancy is an FTA-certified accounting, auditing, and tax advisory firm. Based in Downtown Dubai, we provide comprehensive financial solutions to businesses throughout the UAE.
