Key takeaways
- Corporate tax returns are due within 9 months of the end of the tax period — 30 September 2026 for a 31 December 2025 year-end.
- Late filing costs AED 500 per month for the first 12 months and AED 1,000 per month after that.
- The most frequent errors: missed Small Business Relief elections, free zone income misclassified as qualifying, and undocumented related-party transactions.
- Errors in a filed return can be corrected — the earlier, the cheaper.
For most UAE companies with a calendar year-end, FY 2025 was the first full tax period under Federal Decree-Law No. 47 of 2022, and 30 September 2026 was the first deadline that caught the bulk of the market. Having prepared and reviewed a large number of these returns, we have seen the same issues repeat. This article sets out what went wrong most often, what it costs, and how to fix it before your next filing or an FTA review.
UAE corporate tax return deadline: how it works
A corporate tax return and payment are due within nine months of the end of the relevant tax period. The tax period normally follows your financial year, so:
- 31 December 2025 year-end → return and payment due 30 September 2026.
- 31 March 2026 year-end → due 31 December 2026.
- 30 June 2026 year-end → due 31 March 2027.
Returns are filed on EmaraTax. Corporate tax is charged at 0% on taxable income up to AED 375,000 and 9% above it, with Qualifying Free Zone Persons taxed at 0% on qualifying income.
Mistake 1: Registering late — or not at all
Registration is triggered by being a taxable person, not by making a profit. Dormant companies, start-ups and loss-making businesses must all register. The penalty for late registration is AED 10,000. The FTA has offered a waiver of this penalty where the business files its first return within seven months of the end of its first tax period; if that window was missed, a reconsideration request may still be worth making. Our corporate tax penalty waiver team handles these applications.
Mistake 2: Not electing Small Business Relief
Small Business Relief allows resident businesses with revenue of AED 3 million or less to be treated as having no taxable income — but only if the election is made in the return. It is not automatic. We saw several returns filed by businesses that qualified and simply did not tick the election. Read our guide to electing Small Business Relief before your next filing.
Mistake 3: Free zone income treated as qualifying without testing
A free zone licence does not guarantee 0%. Income from mainland customers, transactions with individuals and activities outside the qualifying list can all be non-qualifying. If non-qualifying revenue exceeds the de minimis limit — the lower of AED 5 million or 5% of total revenue — the entity loses Qualifying Free Zone Person status and is taxed at the standard rates (0% up to AED 375,000, 9% above) on all its taxable income. See free zone corporate tax and QFZP advisory.
Mistake 4: Related-party transactions without arm’s-length support
Management fees, shareholder loans, shared staff and intra-group sales must be priced at arm’s length and disclosed. Many owner-managed groups had no agreements and no pricing rationale. Even where a full master file and local file are not required, a disclosure form and supporting analysis are. Our transfer pricing services cover documentation sized to your group.
Mistake 5: Financial statements not fit for tax
The return starts from accounting profit, so weak books produce weak returns. Common issues included unreconciled bank accounts, personal expenses in the company ledger, and no fixed asset register to support depreciation. Businesses with revenue above AED 50 million, and Qualifying Free Zone Persons, also need audited financial statements under Ministerial Decision No. 84 of 2025. Clean IFRS financial statements are the foundation of a defensible return.
Mistake 6: Ignoring adjustments
Entertainment expenses (only 50% deductible), fines and penalties (not deductible), donations to non-qualifying bodies and the interest limitation rule all require adjustments from accounting profit. These were frequently missed in self-prepared returns.
Corporate tax penalties at a glance
| Violation | Penalty |
|---|---|
| Late registration | AED 10,000 |
| Late filing of return | AED 500 per month (months 1–12), AED 1,000 per month thereafter |
| Late payment of tax | 14% per annum, calculated monthly on the unpaid amount |
Missed the deadline or found an error?
- File immediately. The late filing penalty accrues monthly, so every month matters.
- Pay what is due. Late payment penalties run separately from filing penalties.
- Correct errors properly. Errors in a submitted return are corrected by amendment or voluntary disclosure depending on timing and impact — do not wait for an FTA query.
- Fix the cause. Put monthly bookkeeping and a year-end tax review in place so the next return is right first time.
Frequently asked questions
When is the UAE corporate tax return due?
Within nine months of the end of the tax period. For a 31 December year-end, that is 30 September of the following year.
Do dormant companies need to file a corporate tax return?
Yes. Dormant and loss-making companies that are taxable persons must register and file, even if no tax is payable.
What is the penalty for filing a corporate tax return late?
AED 500 for each month or part month for the first 12 months, then AED 1,000 per month.
Can I amend a corporate tax return after filing?
Yes. Depending on the timing and the tax impact, corrections are made through an amended return or a voluntary disclosure.
Can you file a return for a company you did not prepare the books for?
Yes. We regularly take on returns where the accounts were prepared elsewhere, review them for tax adjustments, and file on EmaraTax. See corporate tax return filing.
This article reflects the position as at October 2026 and is general guidance, not advice for a specific situation. Book a free consultation to review your return.