As the UAE’s corporate tax system changes in 2025, companies need to stay up to date to make sure they’re following the rules and getting the most out of their tax plans. This guide gives a review of the current corporate tax system, important dates, and things that companies in the UAE need to keep in mind.
Corporate Tax Rates in the UAE (Effective 2025)
To be more like other countries and make its finances more clear, the UAE has put in place a tiered corporate tax system.
| Taxable Income | Tax Rate |
|---|---|
| Up to AED 375,000 | 0% |
| More than AED 375,000 | 9% |
| Companies of multinational enterprises (MNEs) | 15% |
As part of the OECD’s global minimum tax deal, MNEs with combined global revenues of more than €750 million must pay a 15% minimum top-up tax.
Corporate Tax Registration Deadlines
To escape fines, it’s important to register on time. The Federal Tax Authority (FTA) has set exact due dates for the following kinds of businesses:
| Business Type | Registration Deadline |
|---|---|
| Companies incorporated before March 1, 2024 | According to the FTA-specified schedule based on the company’s license issuance month |
| Companies incorporated on or after March 1, 2024 | Within 3 months of incorporation |
| Individuals conducting business activities with annual turnover exceeding AED 1 million in 2024 | By March 31, 2025 |
There may be fines if you don’t register by the due date.
Corporate Tax Filing Deadlines
Corporations have nine months from the end of their tax period to file their tax returns. A company whose financial year ends on December 31, 2024, must file its tax return by September 30, 2025.
Indirect Tax Services: VAT and Beyond
Businesses have to pay secondary taxes like Value Added Tax (VAT) as well as company tax. Herald UAE helps businesses deal with these complicated issues by providing a wide range of indirect tax services. Learn more about our corporate and indirect tax services in the UAE to stay compliant and streamline your business taxes.
In Conclusion
Businesses in the UAE must understand and follow the rules about company tax in order to run smoothly in 2025. Businesses can confidently deal with the changing tax environment if they stay educated and get help from professionals.
