Ahmed AbodaifPartner & Co-Founder
Key takeaways
- Every taxable person registered for Corporate Tax files a return for each tax period, even if the result is zero.
- The return and the payment are due within nine months of the end of the tax period — 30 September 2027 for a year ended 31 December 2026.
- Start from final financial statements. Audited statements are required if revenue exceeds AED 50 million, for Qualifying Free Zone Persons and for tax groups.
- Most of the work is in the adjustments: exempt income, non-deductible costs, related-party pricing, losses and reliefs.
- Late filing costs AED 500 a month for the first 12 months, then AED 1,000 a month; late payment is charged at 14% a year.
Who must file
Every person registered for UAE Corporate Tax must file a return for each tax period. That includes companies with taxable income below AED 375,000 (taxed at 0%), businesses electing Small Business Relief, Qualifying Free Zone Persons and non-residents with a permanent establishment in the UAE. A nil result does not remove the obligation — and the late filing penalty applies even when no tax is payable.
When the return is due
The return and the tax payment are due on the same day: within nine months of the end of the tax period.
| Financial year ended | Return and payment due |
|---|---|
| 31 December 2026 | 30 September 2027 |
| 31 March 2027 | 31 December 2027 |
| 30 June 2027 | 31 March 2028 |
| 30 September 2027 | 30 June 2028 |
Set an internal deadline a few weeks earlier. The FTA portal and advisers are busiest in the last days before 30 September.
What to prepare before you start
- Final financial statements for the period — audited where required (see who needs audited accounts).
- Trial balance and ledger detail, so every adjustment can be traced to the accounts.
- Fixed asset and loan schedules, including interest paid and received.
- A list of related parties and connected persons with the value of transactions and payments.
- Details of exempt income such as dividends and qualifying gains.
- Tax losses brought forward and any foreign tax paid.
- Your previous return and any FTA correspondence.
The adjustments that matter
The return starts from accounting profit and then adjusts it to taxable income. The most common adjustments are:
| Item | Treatment |
|---|---|
| Dividends from UAE companies and qualifying participations | Exempt — removed from taxable income |
| Client entertainment | Only 50% deductible |
| Fines and penalties | Not deductible |
| Donations | Deductible only to qualifying public benefit entities |
| Net interest above AED 12 million | Limited to 30% of adjusted EBITDA |
| Payments to connected persons (owners, directors and their relatives) | Deductible only up to market value |
| Related-party transactions | Must be at arm's length — see the transfer pricing guide |
| Tax losses brought forward | Can offset up to 75% of taxable income |
If revenue is AED 3 million or less, Small Business Relief must be elected in the return for each period — it is not applied automatically. Where related-party transactions or connected-person payments exceed the thresholds, a transfer pricing disclosure is filed with the return.
Filing on EmaraTax: the steps
- Log in to EmaraTax and open the taxable person's profile.
- Go to Corporate Tax and open the return for the correct tax period.
- Complete each section: entity details, accounting basis, financial statement figures, adjustments, reliefs and elections, and disclosures.
- Check that the accounting profit in the return agrees to the financial statements to the dirham.
- Review the computed tax, complete the declaration and submit.
- Download the acknowledgement and keep it with your working papers.
- Pay the tax due by the same deadline using the payment reference shown in EmaraTax.
After you file
- Keep records for seven years after the end of the tax period: the return, computation, financial statements and evidence for every adjustment.
- Found an error before the deadline? Correct it before the filing deadline to avoid the AED 500 incorrect-return penalty.
- Found an error after the deadline? File a voluntary disclosure. It costs 1% a month on the tax difference, far less than the 15% that applies if the FTA finds it first — see Corporate Tax penalties.
Common mistakes we see
- Deducting entertainment in full instead of 50%.
- Leaving exempt dividends in taxable income.
- Forgetting to elect Small Business Relief when eligible.
- Paying owners or relatives more than market value without adjusting.
- Filing on time but paying late — late payment charges still apply.
- Figures in the return that do not agree to the audited accounts.
How Business Future CPA helps
We prepare the computation and working papers, review elections and reliefs, prepare the transfer pricing disclosure and file and track the return on EmaraTax. See our tax advisory and accounting and bookkeeping services, or start with the UAE Corporate Tax guide.
Frequently asked questions
Do I need to file a Corporate Tax return if I made no profit?
Yes. Every registered taxable person files a return for each tax period, even if the result is zero or a loss. The late filing penalty applies whether or not tax is payable.
When is the Corporate Tax return due for a 31 December 2026 year-end?
On 30 September 2027 — nine months after the end of the tax period. The tax payment is due on the same day.
Do I need audited financial statements to file?
Only in certain cases: if revenue exceeds AED 50 million, if you are a Qualifying Free Zone Person, or if you file as a tax group. Otherwise, final unaudited statements prepared under the applicable standards are used.
Can I correct a return after submitting it?
Yes. Before the filing deadline you can correct it without the incorrect-return penalty. After the deadline, errors are corrected through a voluntary disclosure.
Official sources: Federal Tax Authority (FTA) · UAE Ministry of Finance · UAE Legislation portal
This guide is general information based on UAE legislation and official announcements as at the date shown. It is not tax or legal advice for your specific situation — talk to us before you act.