A company incorporated in the UAE on or after 1 March 2024 has three months from incorporation to register for corporate tax. After that the rhythm is fixed: a tax return and payment within nine months of the end of every tax period, even when no tax is due. Late registration costs AED 10,000, but the Federal Tax Authority (FTA) waives it if you file your first return within seven months of the end of your first tax period.
The rules below come from Federal Decree-Law No. 47 of 2022, FTA Decision No. 3 of 2024 and Cabinet Decision No. 75 of 2023 as amended, and are current as of October 2026. This is general information, not tax advice. For the basics of rates and who is taxable, start with our UAE corporate tax guide.
When do you have to register?
| Who | Registration deadline |
|---|---|
| Company incorporated in the UAE on or after 1 March 2024, free zones included | Three months from incorporation |
| Foreign company effectively managed and controlled in the UAE | Three months from the end of its financial year |
| Company that existed before 1 March 2024 | A fixed date in 2024 set by its licence month |
| Resident individual whose business turnover passes AED 1 million in a calendar year | 31 March of the following year |
So a company incorporated on 15 October 2026 has until 15 January 2027.
For companies that existed before 1 March 2024, the deadline depended on the month the licence was issued, whatever the year:
- January or February: 31 May 2024
- March or April: 30 June 2024
- May: 31 July 2024
- June: 31 August 2024
- July: 30 September 2024
- August or September: 31 October 2024
- October or November: 30 November 2024
- December: 31 December 2024
A company with more than one licence uses the earliest-issued one. A company with no licence at 1 March 2024 had three months from that date. Every one of these dates has passed, so an older company that still hasn't registered is late today.
The AED 10,000 late registration penalty, and the waiver
Since 1 March 2024, failing to submit a registration application on time has carried a penalty of AED 10,000. Cabinet Decision No. 10 of 2024 added it to the penalty table in Cabinet Decision No. 75 of 2023.
A Cabinet decision in force since April 2025 offers a way out. The FTA waives the penalty if you file your first tax return, or annual declaration for an exempt person that has to register, within seven months of the end of your first tax period instead of the usual nine. The points that matter:
- It covers late registration penalties going back to 1 June 2023.
- It applies whether you registered late and were charged, paid or not, or haven't registered yet.
- It applies to the first tax period only. Miss the seven-month window and the route is closed.
- The waiver is automatic. If you already paid, the amount is credited to your EmaraTax account, where you can use it against other tax or claim a refund.
In May 2026 the FTA said more than 22,000 taxable persons could still benefit, and its registration page, updated in August 2026, still describes the initiative. Check the current conditions on the FTA website before relying on it.
Say your company was incorporated on 10 February 2025, with a first financial year ending on 31 December 2025. The registration deadline was 10 May 2025. If you registered in August 2025 and were charged AED 10,000, your normal filing deadline was 30 September 2026, but to have the penalty waived you needed to file by 31 July 2026.
Return and payment: nine months after the period ends
Filing and payment share one deadline: nine months after the end of the tax period, which is normally your financial year.
| Tax period ends | Return and payment due |
|---|---|
| 31 December 2025 | 30 September 2026 |
| 31 March 2026 | 31 December 2026 |
| 30 June 2026 | 31 March 2027 |
| 31 December 2026 | 30 September 2027 |
The deadline applies even when no tax is due. Businesses electing for Small Business Relief, now available for tax periods ending on or before 31 December 2029, file a simplified return by the same date, and the FTA reminded them of this in August 2026. Exempt persons that must register file an annual declaration within nine months of their financial year-end.
The penalties that apply after registration
These are the main amounts as of October 2026, under Cabinet Decision No. 75 of 2023 as amended:
| What goes wrong | Penalty |
|---|---|
| Return filed late | AED 500 a month for the first 12 months, then AED 1,000 a month |
| Tax paid late | 14% a year, for each month or part of a month unpaid |
| Required records not kept | AED 10,000; AED 20,000 if repeated within 24 months |
| Tax record not updated | AED 1,000; AED 5,000 if repeated within 24 months |
| Deregistration application late | AED 1,000 a month, up to AED 10,000 |
| Incorrect return | AED 500, unless corrected before the filing deadline |
Errors found after the deadline are corrected through a voluntary disclosure. That costs 1% a month on the tax difference, from the original due date to the date you disclose. If you only disclose after the FTA has told you it will audit you, or never disclose, a fixed penalty of 15% of the difference is added.
Records must be kept for seven years after the end of the tax period they relate to, which is longer than the general five-year rule many businesses know from VAT. Our guide to bookkeeping and audit requirements covers what to keep.
Deregistering when you close
Corporate tax registration doesn't end when the trade licence does. You must apply to deregister within three months of the business ceasing, whether through dissolution, liquidation or otherwise. The FTA won't approve it until every return is filed, including one for the period up to the cessation date, and all tax and penalties are paid. Expect to upload the licence cancellation and financial statements up to the cancellation date.
VAT deregistration is a separate application with a shorter deadline, covered in our guide to UAE VAT registration. Our guide to closing a company in Dubai properly puts the steps in order.
How to challenge a penalty
If you think a penalty is wrong, file a reconsideration request on EmaraTax within 40 business days of the FTA's decision. You, a registered tax agent or your legal representative can submit it, with the documents that support your case. The FTA may take up to 45 business days to respond and can extend that. If you disagree with the outcome, the next step is the Tax Dispute Resolution Committee.
Mistakes that lead to penalties
- Assuming no tax means no return. Dormant companies, loss-makers and businesses using Small Business Relief all file.
- Treating VAT registration as corporate tax registration. They are separate registrations with separate deadlines.
- Working to nine months in the first year. The waiver needs seven.
- Cancelling the licence and forgetting the FTA. The deregistration penalty runs monthly.
- Not updating the FTA. Changes to the licence, address, shareholders or signatories need to reach your tax record.
Keeping your licence, FTA record and filings in step is routine work for our PRO services team. If you're not sure whether you are already late, book a free consultation.
Sources
- FTA Decision No. 3 of 2024 on the corporate tax registration timeline
- Cabinet Decision No. 75 of 2023 on corporate tax administrative penalties, with amendments
- Federal Tax Authority: Corporate tax registration service
- Federal Tax Authority: Late registration penalty waiver initiative (May 2026)
- FTA Decision No. 6 of 2023 on the corporate tax deregistration timeline
- Federal Tax Authority: Reconsideration request service
Frequently asked questions
Does a dormant company still have to register and file?
Does the waiver also cover late VAT registration?
Can a freelancer be penalised for late corporate tax registration?
Is corporate tax paid at the same time as the return?
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