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UAE corporate tax: registration and annual return

We register the company for corporate tax, calculate the taxable base and file the annual return — including the cases where the tax is nil but the return is still mandatory. Registration costs AED 2,000, the return from AED 2,000. Missing the registration deadline costs AED 10,000 and does not depend on whether the company earned anything.

Avangard Group L.L.C-FZ · Meydan Free Zone licence No. 2651982.01 · filed through EmaraTax · Author: Svetlana Pavelchuk, CEO of AVANGARD GROUP

Registration: AED 2,000
Return: from AED 2,000
Rates: 0% and 9%
Return due: 9 months after period end

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Who this is for

Recently incorporated companies — registration is due within three months of incorporation, and this is the deadline missed most often.
Companies that did not trade or closed the year at a loss: registration and the return are mandatory anyway.
Free zone companies counting on 0% — the status is proved by conditions, not by holding a free zone licence.
Revenue approaching AED 3 million: Small Business Relief applies to periods ending no later than 31 December 2026 and must be elected in every return.
Anyone already penalised for late registration — many of those penalties are cancelled automatically if the first return is filed in time.

What we do

Service	What it includes	Fee
FTA registration	determine the registration deadline and tax period, assemble the pack, file the application, obtain the tax registration number	AED 2,000
Registration together with VAT	both registrations in one pack	AED 3,000
Return, simplified form	for revenue up to AED 3M: calculate the base, elect the relief, file	AED 2,000
Return, full form	for revenue above AED 3M: full calculation with adjustments, filing, supporting schedules	AED 4,500
QFZP status review	test the conditions for the 0% rate: type of income, de minimis threshold, reporting requirements	by scope
Dealing with a penalty	assess eligibility for automatic cancellation, prepare a reconsideration request where there are grounds	by scope
Bookkeeping including tax	full accounting, the return included in the retainer	from AED 2,000 per month

About that AED 10,000 late registration penalty. It is cancelled automatically if the first tax return is filed within seven months of the end of the first tax period. That window is shorter than the usual nine-month filing deadline — so waiting until the last day of the normal deadline means the waiver no longer applies. If you already have the penalty, this is the first thing we calculate.

How the work runs

Fix the period and the deadlines. A first tax period rarely matches the calendar year — it follows the date in the constitutional documents, and both deadlines depend on it.
Register. We assemble the pack, file through EmaraTax and handle correspondence with the FTA.
Calculate the base. We start from accounting profit and make the adjustments the law requires: disallowed costs, owner's personal spending, related party transactions.
Apply the reliefs. We test eligibility for Small Business Relief and for the free zone 0% rate, and elect them in the return — neither applies automatically.
File and track the payment. We submit the return, deliver the calculation with a breakdown and keep the payment date in sight.

Deadlines and the price of delay

Situation	Consequence
Registration application filed late	AED 10,000 regardless of profit
Return not filed	AED 500 for each month started, AED 1,000 from month 13
Tax not paid	14% per annum, charged monthly on the unpaid amount
Record keeping rules breached	AED 10,000, or AED 20,000 on repetition within 24 months
QFZP status not supported	the whole profit is taxed at 9%

How rates, reliefs and deadlines work in full: UAE corporate tax guide. When the 0% rate requires an audit: the audit guide. The complete penalty schedule: FTA penalties.

Why this is not "filling in a form"

The base comes from the books, not the bank statement. If the period is not closed, the return is reconstructed from bank movements — the first reason assessments arise.
Reliefs must be elected and supported. Eligibility is tested against conditions: revenue, type of income, the history of earlier periods.
Personal spending on the company card is disallowed — better seen before filing than during an audit.
We are a UAE resident firm. Avangard Group L.L.C-FZ, Meydan Free Zone licence No. 2651982.01; tax consultancy is a licensed activity.

We will calculate your deadlines and penalty exposure

Send us your licence — we will determine your first tax period, tell you when registration and the return fall due, whether a penalty has already been charged and whether it can be removed. The review is free.

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Frequently asked questions

AED 2,000, or AED 3,000 together with VAT registration as one package. The fee covers determining your tax period and deadlines, preparing the documents, filing through EmaraTax and correspondence with the tax authority.

Yes. The duty to register and file annually does not depend on turnover or profit. A dormant company with zero revenue collects both the AED 10,000 late registration penalty and the monthly penalties for the missing return.

AED 2,000 on the simplified form for revenue up to AED 3 million, and AED 4,500 on the full form above that. Under a bookkeeping retainer from AED 2,000 per month the return is included.

Not automatically. The 0% rate applies to qualifying income of a Qualifying Free Zone Person, and the status has to be maintained: adequate substance in the UAE, qualifying activities, staying within the de minimis threshold, audited financial statements and transfer pricing compliance. Non-qualifying income is taxed at 9%.

Often yes. If the first return is filed within seven months of the end of the first tax period, the AED 10,000 penalty is cancelled automatically and any amount paid is credited back. If that window has passed, what remains is a reconsideration request — which needs documents and grounds, not explanations.

The relief applies to tax periods ending no later than 31 December 2026. For a company on a calendar financial year, 2026 is the final year; from 2027 profit above AED 375,000 is taxed at 9%. No extension has been announced, so the 2027 budget is worth recalculating in advance.

Fees are stated in UAE dirhams and are current as of 17 August 2026; the final price is fixed in the engagement letter. This material is for information only and is neither a public offer nor tax advice. Rates, thresholds and deadlines follow current Federal Tax Authority rules and can be verified at tax.gov.ae.