In 2023, the United Arab Emirates introduced a federal Corporate Tax (CT), marking a significant shift in the country’s business landscape. As the UAE transitions into a globally recognized tax jurisdiction, it’s crucial for businesses—whether located in Free Zones or Mainland—to understand the requirements and procedures for CT registration.
What is Corporate Tax?
Corporate Tax is a direct tax imposed on the net income or profit of corporations and other businesses. In the UAE, CT is governed by Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
The standard Corporate Tax rate is 9% for taxable income exceeding AED 375,000. Income below this threshold is taxed at 0%, encouraging the growth of small businesses and startups.
CT Registration for Mainland Companies
Mainland companies are businesses registered with the Department of Economic Development (DED) in each emirate. These businesses are automatically subject to Corporate Tax, unless exempted under specific categories (such as government entities or qualifying public benefit entities).
Registration Process:
- Create a Federal Tax Authority (FTA) account via https://eservices.tax.gov.ae
- Complete the Corporate Tax Registration Form
- Upload required documents (Trade license, Emirates ID, Passport of owner/partners, MOA, etc.)
- Submit and wait for the Tax Registration Number (TRN)
Timeline: It typically takes 20 business days, though some cases may be processed sooner.
Deadline Alert: All companies must register for Corporate Tax, even if they don’t meet the taxable threshold.
CT Registration for Free Zone Companies
Free Zone companies operate under special jurisdictions and are often eligible for tax incentives, including 0% Corporate Tax on qualifying income. However, they are still required to register for CT.
Who Qualifies for 0% Tax?
To benefit from the 0% CT rate, Free Zone companies must be:
- A Qualifying Free Zone Person (QFZP)
- Earning Qualifying Income
- Complying with substance requirements
- Not electing to be taxed at the regular rate
Non-qualifying income or non-compliance may subject Free Zone companies to the standard 9% rate.
Registration Steps:
Same as Mainland:
- Register on the FTA portal
- Submit the CT registration form with supporting documents
- Wait for your TRN
Additional Note: Free Zone companies must maintain audited financial statements to prove their eligibility for tax incentives.
Required Documents (For Both Mainland & Free Zone)
- Trade license
- Passport and Emirates ID of the owner/partners
- Memorandum of Association (MOA)
- Company contact details
- Financial statements (if available)
- Details of business activities
Need Help with CT Registration?
Navigating Corporate Tax regulations can be complex, especially when determining qualifying income or maintaining compliance.
For professional guidance and hassle-free CT registration, you can get in touch with IK Business Consultants. Their expert team offers tailored support for both Free Zone and Mainland companies to ensure you’re fully compliant and confident in your tax strategy.
For more detailed information about corporate tax registration in the UAE, visit the UAE Government’s official portal
Final Thoughts
Corporate Tax registration is not optional—it’s a legal requirement for all businesses in the UAE. Whether you’re a startup in a Free Zone or a thriving enterprise in the Mainland, compliance ensures peace of mind and positions your business for long-term success.
If you’re unsure about your CT obligations or how to register, it’s best to consult a tax advisor or accountant to avoid penalties and ensure compliance.
