The corporate tax system in the UAE has established clear guidelines for individuals and businesses engaged in commercial activities in the country in 2025. According to the Federal Tax Authority (FTA), these entities are required to register for tax. Based on the type of the entity, the authorities have announced specific deadlines.
Businesses and individual enterprises need to comply with these deadlines to avoid penalties. Failing to register a business on time can invite a fine of AED 10,000. Organizations operating in the city, therefore, must seek professional advisor solutions from established corporate tax consultants in Dubai to ensure compliance.
Tax Registration Deadlines in the UAE
Natural Persons
If you’re an individual or natural person operating in business or providing professional services in Dubai, you must register for corporate tax if the revenue exceeds AED 1 million in a financial year.
Revenue Threshold Met | Tax Registration Deadline |
Revenue exceeded AED 1 million in 2024 | 31st March, 2025 |
Revenue exceeds AED 1 million in subsequent years | 31st March of the following year |
In case an individual fails to register the business before the due date, an administrative fine of AED 10,000 will apply.
UAE-Registered Businesses
If you’re a business holding a commercial license in the UAE that was issued before 1st March 2024, remember the following dates.
| License Issued | Registration Deadline |
| January – February | May 31, 2024 |
| March – April | June 30, 2024 |
| May | July 31, 2024 |
| June | August 31, 2024 |
| July | September 30, 2024 |
| August – September | October 31, 2024 |
| October – November | November 30, 2024 |
| December | December 31, 2024 |
If you did not hold a commercial license as of 1st March 2024, you must complete your registration within the first three months commencing from this date.
Businesses Incorporated After March 1, 2024
Non-Resident Businesses
Foreign businesses that have a Permanent Establishment (PE) or a Place of Effective Management (POEM) in the UAE must comply with the following deadlines:
| Entity Type | Registration Deadline |
| PE created before March 1, 2024 | Within 9 months of establishment |
| PE created after March 1, 2024 | Within 6 months of establishment |
| Foreign company with POEM in UAE | Within 3 months after the end of its financial year |
Key Issues Faced by Businesses While Ensuring Compliance
Although the registration framework has been structured, many businesses are encountering difficulties in compliance due to misunderstandings or regulatory complexities. Some of these common challenges include:
- Corporate tax vs. VAT registration: Some businesses mistakenly assume that VAT registration automatically covers corporate tax registration. However, the FTA has clarified that both require separate registration.
- Tax treatment in free zones: Free zone businesses may be eligible for 0% corporate tax under Article 18 of the tax law. However, they must still register and file tax returns annually.
- Foreign businesses: Many non-resident businesses with POEM in the UAE are unaware that they must register within three months after their financial year ends, even without a commercial license in the UAE.
- Requirements for updates: Organizations must report any changes to trade licenses, business activities, or ownership to the FTA within 20 days. Many businesses struggle to determine whether they must update even minor modifications.
Penalties for Late Registration and Non-Compliance
| Violation | Penalty |
| Not registering for corporate tax within the deadline. | AED 10,000 (US$2,722) |
| Not updating tax records within 20 days | Variable (case-dependent) |
| Filing corporate tax late | Determined by FTA (based on the delay period) |
Professional Compliance Advisory Services
The new corporate tax framework in the UAE presents businesses with significant challenges. Organizations in the UAE must adhere to strict tax registration and reporting requirements.
Proactive businesses must seek compliance advisory services from professional consultants like the IMC Group. With accurate record-keeping and proactive measures for compliance from these tax experts, organizations can ensure smooth operations amidst the evolving tax regime in the UAE.
