# UAE corporate tax registration for small businesses, freelancers and online sellers: who must register, deadlines, Small Business Relief and penalties

> Every company in the UAE, mainland or free zone, must register for corporate tax with the Federal Tax Authority (FTA) and get a Tax Registration Number, whatever its profit and whether or not it is registered for VAT. A new company must apply within three months of incorporation. An individual, such as a freelancer, sole establishment owner or online seller trading in their own name, must register only once the turnover of their business passes AED 1 million in a calendar year, and then by 31 March of the following year. Salary, personal investments and personal real estate income do not count. The tax itself is 0% on the first AED 375,000 of taxable income and 9% above that, and a resident business with revenue of AED 3 million or less can elect Small Business Relief and pay nothing, a relief the Ministry of Finance extended in July 2026 to tax periods ending on or before 31 December 2029. Registering late costs AED 10,000, but the FTA waives that penalty if you file your first return within seven months of the end of your first tax period. Registration is free and done on EmaraTax. This guide collects the rules from the official texts and ends with what to set up in your accounting, store or app so the first return is painless.

- Canonical: https://www.ogblabs.com/guides/uae-corporate-tax-registration-small-business
- Arabic version: https://www.ogblabs.com/ar/guides/uae-corporate-tax-registration-small-business
- Author: OGB Labs (https://www.ogblabs.com)
- Published: 2026-10-18
- Updated: 2026-10-18

## The rules, and where to read them

UAE corporate tax is imposed by Federal Decree-Law 47 of 2022, which applies to financial years starting on or after 1 June 2023, and is administered by the FTA. The Ministry of Finance asks the public to rely only on its own and the FTA's publications, so every figure in this guide links to one of these documents, which we read in October 2026:

- The [Corporate Tax Law with its amendments](https://mof.gov.ae/wp-content/uploads/2026/01/Federal-Decree-Law-No.-47-of-2022-and-its-amendments-en-v13.1.26.pdf), consolidated by the Ministry of Finance up to Federal Decree-Law 28 of 2025: article 3 on rates, article 11 on who is taxable, article 21 on Small Business Relief, article 51 on registration, article 53 on returns and article 56 on records.
- [Cabinet Decision 116 of 2022](https://mof.gov.ae/wp-content/uploads/2023/04/Cabinet-Decision-No-116-of-2022-on-the-annual-Taxable-Income-subject-to-Corporate-Tax.pdf), which sets the AED 375,000 zero-rate band.
- [FTA Decision 3 of 2024](https://tax.gov.ae/Datafolder/Files/Legislation/FTA%20Decision%20No.%203%20of%202024%20on%20Registration%20Timeline%20for%20Corporate%20Tax%20-%20For%20publishing.pdf), in force since 1 March 2024: the registration deadlines for companies, foreign entities and individuals.
- [Cabinet Decision 75 of 2023 with its amendments](https://mof.gov.ae/wp-content/uploads/2024/03/Cabinet-Decision-No.-75-of-2023-and-its-amendments-on-the-Administrative-Penalties-for-Violations-Related-to-the-Application-of-Federal-Decree-Law-No.-47-of-2022.pdf): the administrative penalties, including the AED 10,000 late registration penalty added by Cabinet Decision 10 of 2024.
- The FTA's [Small Business Relief page](https://tax.gov.ae/en/taxes/corporate.tax/corporate.tax.topics/small.business.relief.23.aspx) and [Small Business Relief guide](https://tax.gov.ae/Datafolder/Files/Guides/CT/Small%20Business%20Relief%20Guide%20-%20EN%20-%2029%2008%202023.pdf), and [Ministerial Decision 131 of 2026](https://mof.gov.ae/wp-content/uploads/2026/08/Ministerial-Decision-No.-131-of-2026-Amending-Certain-Provisions-of-Ministerial-Decision-No.-73-of-2023-on-Small-Business-Relief-for-the-Purposes-of-Federal-Decree-Law-No.-47-of-2022-EN.pdf) of 29 July 2026, which extends the relief to 2029.
- The FTA's [natural persons page](https://tax.gov.ae/en/taxes/corporate.tax/corporate.tax.topics/basis.of.taxation.natural.person.aspx) and [guide to the registration of natural persons](https://tax.gov.ae/Datafolder/Files/Guides/CT/CT%20Registration%20of%20Natural%20Persons%20-%2029%2012%202023.pdf) (CTGRNP1), with the AED 1 million test.
- [Public Clarification CTP006](https://tax.gov.ae/Datafolder/Files/Pdf/2025/CTP006-Waiver-of-Late-Registration-Administrative-Penalty-02-07-2025.pdf) on the late registration penalty waiver, and the FTA's [14 May 2026 update](https://tax.gov.ae/en/media.centre/news/fta.expects.number.of.beneficiaries.from.corporate.tax.late.registration.penalty.waiver.initiative.to.rise.to.91000.aspx) on it.
- The FTA's [Corporate Tax Registration service page](https://tax.gov.ae/en/services/corporate.tax.registration.aspx), last updated 19 August 2026: documents, steps, fees and processing time.

## Who must register

Article 51 of the Corporate Tax Law requires every Taxable Person to register with the FTA and obtain a Tax Registration Number within the timeline the FTA sets. Article 11 defines a Taxable Person broadly, so registration is not tied to profit, turnover or VAT status for companies:

- Every juridical person incorporated or recognised in the UAE, expressly including free zone companies. A Qualifying Free Zone Person pays 0% on its qualifying income, but it still registers and files.
- A foreign company that is effectively managed and controlled in the UAE, and a foreign company with a permanent establishment or a nexus in the UAE.
- A natural person, meaning an individual, who conducts a business or business activity in the UAE, but only once turnover from that business exceeds AED 1 million in a calendar year. The next section covers this test.
- Being registered for VAT does not count. The FTA's FAQ says VAT registrants must register for corporate tax separately, and the service page notes that a UAE branch of a UAE company does not register on its own, because it is part of its head office.

## The tax rate: 0% to AED 375,000, then 9%

Article 3 of the Law sets two rates, and Cabinet Decision 116 of 2022 fixes the band. Note that the 0% band applies to taxable income, which is accounting profit after tax adjustments, not to revenue. A business with AED 2 million of sales and AED 300,000 of profit pays nothing; one with AED 500,000 of profit pays 9% on AED 125,000, which is AED 11,250.

**UAE corporate tax rates**

| Taxable income | Rate | Notes |
| --- | --- | --- |
| Up to AED 375,000 | 0% | One band per Taxable Person, however many businesses or activities it runs |
| Above AED 375,000 | 9% | On the portion above the band |
| Qualifying income of a Qualifying Free Zone Person | 0% | Article 3(2) taxes the company's other income at 9%, without mentioning the AED 375,000 band |
| Business split artificially to multiply the band | Treated as tax avoidance | Article 2 of Cabinet Decision 116 of 2022 points to the anti-abuse rule in article 50 of the Law |

## Freelancers, sole establishments and individuals: the AED 1 million test

Individuals are the group most often confused about registration, because the rule is different from companies. The FTA's natural persons page says an individual is subject to corporate tax only if they conduct a business or business activity in the UAE and the total turnover from it exceeds AED 1 million within the calendar year, January to December. Below that, they should not register at all.

Three kinds of income never count towards the AED 1 million and are not taxed in an individual's hands: wages from employment, personal investment income, and real estate investment income, as long as the investing is not done under a licence or in a way that needs one. So a salaried employee with a side business counts only the side business, and a landlord renting out personally owned apartments counts nothing from the rent.

Turnover means gross sales, not profit. The FTA's guide gives the example of a Sharjah resident who develops accounting software at home and sells AED 1.2 million of licences in a calendar year: she must register. In another of its examples, a shareholder's dividends are personal investment income and stay outside, but the car rental business he runs from home must register because its turnover passes AED 1 million. An individual registers once, with one Tax Registration Number for all their businesses, and if turnover later falls below AED 1 million they stay registered and file a nil return rather than deregistering, unless they stop trading altogether.

This applies to sole establishments, freelance permit holders, individual partners in unincorporated partnerships, and people selling online in their own name. The moment you trade through a company instead, the company registers from incorporation regardless of turnover.

## Registration deadlines, from FTA Decision 3 of 2024

FTA Decision 3 of 2024 sets the deadlines, and article 6 of the decision attaches the AED 10,000 penalty to missing them. Companies that existed on 1 March 2024 had a schedule of 2024 deadlines based on the month their licence was issued, which has now passed. The rules that still matter for anyone starting out are these:

**When to apply for corporate tax registration**

| Who | Deadline |
| --- | --- |
| A UAE company, including a free zone company, incorporated on or after 1 March 2024 | 3 months from the date of incorporation, establishment or recognition |
| A foreign company effectively managed and controlled in the UAE | 3 months from the end of its financial year |
| A foreign company with a permanent establishment in the UAE created on or after 1 March 2024 | 6 months from the date the permanent establishment came into existence |
| A foreign company with a nexus in the UAE | 3 months from the date the nexus was established |
| A resident individual whose business turnover exceeded AED 1 million in a calendar year from 2024 on | 31 March of the following calendar year |
| A non-resident individual whose UAE business turnover exceeded AED 1 million | 3 months from the date they became subject to tax |

## Small Business Relief: AED 3 million revenue, now until 2029

Article 21 of the Law lets a resident Taxable Person elect to be treated as having no taxable income for a tax period, and Ministerial Decision 73 of 2023 sets the condition: revenue of AED 3 million or less in that tax period and in every previous tax period. Once revenue exceeds AED 3 million in any period, the relief is gone for good, even if revenue falls back later. The FTA's page gives the example of a Sharjah business with AED 1.9 million of revenue in 2026 that cannot elect because it had AED 4.3 million in 2025.

The original decision limited the relief to tax periods ending on or before 31 December 2026. [Ministerial Decision 131 of 2026](https://mof.gov.ae/wp-content/uploads/2026/08/Ministerial-Decision-No.-131-of-2026-Amending-Certain-Provisions-of-Ministerial-Decision-No.-73-of-2023-on-Small-Business-Relief-for-the-Purposes-of-Federal-Decree-Law-No.-47-of-2022-EN.pdf), issued on 29 July 2026, replaced that clause so the threshold now applies to tax periods ending on or before 31 December 2029. Many articles online still quote 2026.

What the relief means in practice, from the FTA's Small Business Relief guide:

- You still register for corporate tax and still file a return every period. The relief is an election you make in the return, each year.
- You file a simplified return, do not calculate taxable income and pay no corporate tax for that period.
- You can prepare financial statements on the cash basis of accounting, under Ministerial Decision 114 of 2023, if revenue is within AED 3 million.
- You cannot claim exempt income, deductions, other reliefs or tax losses for that period, and losses made in a relief year cannot be carried forward. Losses from earlier non-relief years can still be carried.
- No transfer pricing documentation is required, but transactions with related parties must still be at arm's length.
- A Qualifying Free Zone Person and a member of a multinational group with consolidated revenue above AED 3.15 billion cannot elect.
- Splitting a business into several entities to stay under AED 3 million is treated as tax avoidance under the general anti-abuse rule.

## Returns, payment and records

Article 53 requires the tax return within nine months of the end of the tax period, and the FTA's 26 September 2026 release confirms payment is due in the same window: for a financial year ending 31 December 2025, the return and payment were due by 30 September 2026. Your tax period is your financial year, which under article 57 is the calendar year unless you prepare accounts for a different 12-month period.

Article 56 requires you to keep all records that support the return and let the FTA work out your taxable income for seven years after the end of the tax period. Article 54 lets the FTA request the financial statements behind any return, and the Minister can require some categories of business to have them audited. Businesses that elect Small Business Relief must still keep records that prove their revenue.

## Penalties, from Cabinet Decision 75 of 2023 as amended

The penalty schedule for corporate tax is separate from the VAT schedule. These are the rows a small business is most likely to meet:

**Corporate tax administrative penalties**

| Violation | Penalty |
| --- | --- |
| Not submitting the registration application on time | 10,000 |
| Filing the return late | 500 for each month or part of a month for the first 12 months, then 1,000 a month |
| Paying the tax late | 14% a year on the unpaid amount, charged monthly from the day after the due date |
| Filing an incorrect return | 500, unless corrected before the filing deadline |
| Not keeping the required records | 10,000, or 20,000 if repeated within 24 months |
| Not applying to deregister on time after closing | 1,000 a month, up to 10,000 |

## The late registration penalty waiver

If you have missed your registration deadline, the AED 10,000 penalty can still be avoided. The Cabinet approved a waiver effective 14 April 2025 that covers any corporate tax late registration penalty from 1 June 2023, and the FTA explains it in Public Clarification CTP006. The condition is simple: submit your first tax return, or annual declaration for an exempt person, within seven months of the end of your first tax period instead of the usual nine. It applies only to the first tax period, and it does not move the payment deadline, which stays at nine months.

The waiver is automatic. If the penalty is unpaid it disappears from your EmaraTax account; if you already paid it, AED 10,000 is credited to your account to use against tax or refund. People who have not registered at all can benefit by registering and then filing within the seven months. On 14 May 2026 the FTA said more than 68,600 taxpayers had used the waiver and that its data showed over 22,000 more were eligible, so as of October 2026 the initiative is still running.

Worked example: a company whose first tax period is 1 January to 31 December 2026 and which has not yet registered should register now and file its first return by 31 July 2027 to have the penalty waived. A company whose first period ended 31 December 2025 needed to file by 31 July 2026, so the waiver has passed for it.

## How to register on EmaraTax

Registration is free, takes the FTA's estimated 25 minutes to submit, and the FTA says it completes a correct application within 20 business days. Everything is on the EmaraTax platform, and applications can also be submitted at Tas'heel government service centres. From the FTA's service page:

1. Create and activate an EmaraTax account, or log in to the account you already use for VAT; the same login works for both taxes.
2. On the dashboard, create a Taxable Person profile, or open the existing one, and click View.
3. Under Corporate Tax, open the three-dot Action menu and choose Register.
4. Fill in the entity details: for a company, the certificate of incorporation or memorandum of association, the commercial registration or licensing authority document, and all valid trade licences including branch licences.
5. Add the owners holding more than 25% and the authorised signatories, with Emirates ID and passport for each, plus proof of the signatory's authority.
6. Upload the documents as PDFs of up to 15 MB each, review the application and submit. You will receive the corporate tax Tax Registration Number once approved.

## What to set up so the first return is easy

Most of the pain in corporate tax comes from accounts that were never organised for it. These are the systems we put in place for UAE clients when we build their store, app or back office:

- A proper set of books from day one, in accounting software that produces a profit and loss statement and balance sheet per financial year. The return starts from accounting profit, so spreadsheets of bank transactions are not enough.
- A revenue report by tax period, and for individuals a running total by calendar year, so you see the AED 3 million relief line and the AED 1 million registration line coming before you cross them.
- A clean split between business and personal money for sole establishments and freelancers: a business bank account, business cards and invoices from the business name.
- Orders, invoices and refunds from your store or app pushed into the accounting system automatically, so revenue in the books matches the platform. The same feed produces the figures for the VAT return if you are registered.
- A document store that keeps invoices, contracts, bank statements and payroll records for seven years, under your control rather than only inside a platform you might stop paying for.
- Calendar reminders for the registration deadline, the seven-month waiver date, the nine-month return and payment date, and the end of each financial year.

## Corporate tax, VAT and e-invoicing together

Corporate tax is a tax on profit and is filed once a year. VAT is a tax on sales, registered separately once taxable sales pass AED 375,000 in 12 months and filed quarterly; see [UAE VAT registration for online sellers](https://www.ogblabs.com/guides/uae-vat-registration-online-sellers). From 2027, invoices between businesses move to Peppol e-invoicing, which applies whether or not you are VAT-registered; see [UAE e-invoicing](https://www.ogblabs.com/guides/uae-e-invoicing). A store or app that records every sale correctly feeds all three with the same data.

Setting up the rest of a UAE online business? Read our guides to [.ae domain registration](https://www.ogblabs.com/guides/ae-domain-registration), [Shopify vs custom ecommerce in the Gulf](https://www.ogblabs.com/guides/shopify-vs-custom-ecommerce-gulf) and [what a company website costs in the Gulf](https://www.ogblabs.com/guides/website-cost-gulf). Running an Omani company as well? See [Oman VAT registration for online sellers](https://www.ogblabs.com/guides/oman-vat-registration-online-sellers) and [e-invoicing in Oman](https://www.ogblabs.com/guides/e-invoicing-oman-fawtara).

## How OGB Labs helps

OGB Labs, a web and software development company in Muscat, Oman, with a team in Dubai, is not a tax agent and does not file returns. What we do is build the systems that make corporate tax compliance routine: order and invoice feeds from your store or app into your accounting software, revenue and threshold dashboards, document retention, and custom back-office software for businesses whose accounts have outgrown a spreadsheet. Your accountant handles the registration and the return; we make sure the numbers they need are already there. See [web and software development in the UAE](https://www.ogblabs.com/locations/uae) and our [custom software](https://www.ogblabs.com/services/custom-software) and [ecommerce](https://www.ogblabs.com/services/ecommerce) services, or message us on WhatsApp at +968 7111 0727.

## Frequently asked questions

### Does every company in the UAE have to register for corporate tax?

Yes. Article 51 of the Corporate Tax Law requires every Taxable Person to register, and article 11 makes every UAE-incorporated company a Taxable Person, including free zone companies and companies with no profit. A new company must apply within three months of incorporation under FTA Decision 3 of 2024.

### Do freelancers have to register for UAE corporate tax?

Only if the turnover of their business exceeds AED 1 million in a calendar year. Then they must apply by 31 March of the following year. Salary, personal investment income and personal real estate income do not count towards the AED 1 million. Below the threshold, the FTA says natural persons should not register.

### What is the corporate tax rate in the UAE?

0% on taxable income up to AED 375,000 and 9% on the portion above it, under article 3 of the Law and Cabinet Decision 116 of 2022. Qualifying Free Zone Persons pay 0% on their qualifying income.

### What is Small Business Relief and who can claim it?

A resident business with revenue of AED 3 million or less in the current tax period and every previous one can elect, in its tax return, to be treated as having no taxable income, so it pays no corporate tax and files a simplified return. Qualifying Free Zone Persons and members of large multinational groups cannot elect.

### Has Small Business Relief been extended beyond 2026?

Yes. Ministerial Decision 131 of 2026, issued on 29 July 2026, changed the end date so the AED 3 million threshold applies to tax periods ending on or before 31 December 2029.

### Do I need to register for corporate tax if I am already registered for VAT?

Yes. The FTA's FAQ says VAT registrants must register for corporate tax separately. You can do it from the same EmaraTax account.

### What is the penalty for late corporate tax registration in the UAE?

AED 10,000 under Cabinet Decision 75 of 2023 as amended by Cabinet Decision 10 of 2024. The FTA waives it if you file your first tax return within seven months of the end of your first tax period, under the initiative explained in Public Clarification CTP006.

### When is the UAE corporate tax return due?

Within nine months of the end of the tax period, with payment in the same window. For a financial year ending 31 December 2025, the deadline was 30 September 2026.

### How long does corporate tax registration take and what does it cost?

Registration on EmaraTax is free. The FTA estimates 25 minutes to submit the application and 20 business days to process a complete one.

### How long must I keep records for UAE corporate tax?

Seven years after the end of the tax period they relate to, under article 56 of the Corporate Tax Law. Not keeping records is penalised at AED 10,000, or AED 20,000 if repeated within 24 months.

## Related

- [Custom Software](https://www.ogblabs.com/services/custom-software): Portals, dashboards and business systems shaped around the way your company really runs.
- [Ecommerce](https://www.ogblabs.com/services/ecommerce): Stores built to sell: storefronts that feel like your brand, a checkout people finish and inventory that stays in sync.
- [VAT registration in Saudi Arabia for online stores and apps: thresholds, foreign sellers, marketplaces and penalties](https://www.ogblabs.com/guides/saudi-vat-registration-online-sellers): When a Saudi or foreign online store, app or SaaS must register for VAT with ZATCA: SAR 375,000 and 187,500 thresholds, marketplace rules, deadlines and fines.
- [UAE PASS integration for websites and apps: login, onboarding steps and the rules you must follow](https://www.ogblabs.com/guides/uae-pass-integration-websites-apps): How to add Sign in with UAE PASS to a website or app: who can integrate, the onboarding phases, the OAuth 2.0 flow, account levels, linking rules and go-live checks.
- [Payment gateways in the UAE: cards, Jaywan, Apple Pay, Aani and BNPL for websites and apps](https://www.ogblabs.com/guides/payment-gateways-uae): How to accept online payments in the UAE: cards, the new Jaywan national card, Apple Pay, Google Pay, Aani, Tabby and Tamara, CBUAE licensing, fees and what to check before you integrate.

## Contact

- WhatsApp: +968 7111 0727 (https://wa.me/96871110727)
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- Email: hello@ogblabs.com
- Hours: Sunday – Thursday, 9:00 – 18:00 Gulf Standard Time (GMT+4)
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