Top 10 Things to Remember When Filing Corporate Tax Returns in the UAE (2025)

Filing corporate tax returns in the UAE isn’t just a legal requirement it’s a serious step toward long-term business sustainability. Yet, many businesses either delay it or treat it casually, which can result in fines, stress, and missed benefits.
To help you prepare smartly and stay ahead in 2025, we’ve outlined the 10 most important things you need to keep in mind when filing your UAE corporate tax return.
Let’s break it down.

Here are the top 10 things to keep in mind when filing corporate tax in the UAE

1. Understand your tax period and deadlines before it’s too late

Every business has its own financial year. Your corporate tax return must be filed within 9 months from the end of that financial year.

For most companies following a calendar year (January–December), the filing deadline is:

• 📅 September 30, 2025

For others (e.g., April–March), the deadline shifts accordingly.
Don’t wait till the last month. Start gathering your documents at least 2–3 months in advance.

2. Ask yourself: Are you even required to file?

This seems obvious, but it’s often misunderstood.

You must register and file if:

• You’re operating in the Mainland or a Free Zone
• You’re a branch of a foreign company
• You’re a freelancer or solo consultant earning over AED 1 million annually

Even if your tax rate is 0% or your company didn’t make a profit, you still need to file. Not doing so may cost you AED 10,000 or more in penalties.

3. Know your numbers especially tax rates

Here’s how the UAE Corporate Tax system works in 2025:

• 0% tax on the first AED 375,000 in profits
• 9% tax on profits above AED 375,000
• 15% tax applies to multinational groups earning over €750 million globally (OECD Pillar Two rules)

Tip: Even at 0%, registration and filing is a must. Don’t assume exemption means “no action required.”

4. Are your accounts ready for filing? Make sure they follow the rules

To file corporate tax, your accounting records must follow accepted standards:

• Use International Financial Reporting Standards (IFRS) or
• An FTA-approved simplified framework

If your business earns more than AED 50 million annually, then:

• Audited financials are mandatory
• Poor accounting = poor filings = higher risk of fines and audits.

5. Small business? Check if you qualify for 0% relief

If you’re a startup or small business, there’s some good news.
Between 2023 and 2025, the UAE introduced Small Business Relief (SBR)

You qualify if:

• Your annual revenue is below AED 3 million
• You’re not part of a multinational group
• You’re not performing excluded Free Zone activities

Even if you qualify, you must still file to claim this benefit.

6. Not all Free Zone income is tax-free (and this is where people get it wrong)

Free Zones are not a free pass.
If you want to maintain 0% tax, your income must qualify as Qualifying Income. This includes:

• Revenue from other Free Zone entities
• Export income or foreign client revenue
• Regulated income from logistics, manufacturing, or tech activities

If your Free Zone income doesn’t meet these rules → it gets taxed at 9%
Keep income streams separate and well-documented.

7. your records straight (and store them for 7 years!)

Filing corporate tax isn’t just about numbers. It’s about evidence.

You must retain:

• Sales & purchase invoices
• Employee payroll records
• Contracts, lease documents, bank statements
• ESR & VAT submissions
• Transfer pricing files (if applicable)

The retention period is 7 years.
Good records = better defense in audits + smarter tax planning.

8. Does your business perform a “relevant activity”? You may need to comply with ESR

Many businesses are unaware that they fall under Economic Substance Regulations (ESR), which are required by the UAE to meet international tax standards. If your company conducts certain “relevant activities,” you’re expected to prove that your core business functions are genuinely being carried out in the UAE. This ensures that businesses are not just registered in the UAE for tax benefits without having actual operations here.

If you’re in activities like:

• Distribution
• Holding company
• Intellectual Property (IP)
• Shipping
• Leasing

Then you fall under Economic Substance Regulations (ESR). You’ll need to:

• File ESR notifications
• Submit an annual ESR return
• Prove substantial UAE presence (office, staff, management control)

Non-compliance = AED 20,000 fine (minimum).

9. Mistakes that cost you money (literally)

Here are common filing errors that businesses often make:

Pro tip: Use cloud accounting tools, set reminders, or hire a tax advisor to stay on track.

10. Talk to a tax consultant

Here’s the truth: even if your accounting is clean, UAE corporate tax rules are still new and evolving.

A certified tax advisor helps you:

• Navigate Free Zone rules & claim tax benefits
• Apply Small Business Relief or Transfer Pricing correctly
• Stay compliant with FTA, ESR, and VAT regulations
• Prepare for audits before they happen

Don’t wait for a mistake. Tax planning is always cheaper than penalties.

Conclusion:

Corporate tax filing in the UAE isn’t something to fear it’s something to prepare for.
Whether you’re a small business looking for relief or a Free Zone company trying to maintain 0% tax, the key is simple:

File on time. File accurately. Keep clean records. Consult a pro.

And if you’re feeling overwhelmed, Horizon Biz Consultancy is always here to simplify the journey for you.

FAQ’S