Who is affected
Almost every business: mainland companies, free zone entities, and many individuals with business licenses. The 9% rate applies to taxable profits above AED 375,000; profits below that are taxed at 0% — but registration and filing are still mandatory.
Small Business Relief
Businesses with revenue up to AED 3 million can elect Small Business Relief and be treated as having no taxable income for that period. It must be actively claimed in a filed return — and it doesn’t remove the bookkeeping obligation.
Registration timelines
The FTA set registration deadlines based on license issuance dates, with AED 10,000 penalties for missing them. If your business is not yet registered, treat it as urgent.
What records you need
Revenue and expense records, bank statements reconciled to books, payroll records, and contracts — kept for 7 years. Start-of-year balance sheets matter too, since opening balances affect taxable income.
Prepare once, benefit every year
Set up proper accounting now and every future filing becomes routine. We build exactly this foundation for SMEs — accounting system, registrations, and a compliance calendar — in one onboarding.
References & Official Sources
- Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses — official link
- Federal Tax Authority — Corporate Tax portal — official link
- Cabinet Decision No. 75 of 2023 — Administrative Penalties for Corporate Tax — official link
- FTA Decision — Corporate Tax Registration Timelines — official link
This article is general information, not formal tax advice. Regulations change — always confirm your position with a qualified advisor.