Since the UAE began levying a corporate tax, quite a lot has changed for companies. If you are active in Dubai or another emirate, whether on the mainland or in a free zone, you should clarify two things: Are you required to register? And how do you meet your obligations towards the Federal Tax Authority (FTA) on time?
Danho & Partner Wirtschaftskanzlei LLC-FZ guides German-speaking entrepreneurs and DACH companies in Dubai step by step: from the initial registration through the tax return to ongoing documentation.
Compliance note: This article does not replace tax advice in individual cases; the applicable regulations of the UAE tax authority (FTA) at the relevant time are authoritative.
The UAE taxes the profits of legal entities. This applies to financial years beginning on or after 1 June 2023. The rate is 9% on taxable profits that exceed a threshold of AED 375,000. If your profits stay below this threshold, you pay no corporate tax.
The basis for your taxable profit is your net profit under commercial accounting. You then adjust this for tax purposes in line with the FTA's requirements.
You will find further terminology and explanations in our glossary, for example in the detailed definition of corporate tax in the UAE.
Compliance note: This article does not replace tax advice in individual cases; the applicable regulations of the UAE tax authority (FTA) at the relevant time are authoritative.
The short answer: almost every legal entity that was incorporated in the UAE or is considered resident here must register with the FTA for corporate tax. This includes above all:
What matters is the UAE company, not your industry. This expressly also applies to digital business models and agencies: anyone running a UAE company as a coach, online service provider, content creator or through a marketing or consulting agency must register just like a traditional trading or manufacturing business. The fact that you work purely online or location-independently changes nothing, as soon as a legal entity incorporated or resident in the UAE stands behind it.
Certain categories are exempt from the tax, such as government entities or qualifying public benefit organisations. Whether your company falls under this is something we look at case by case.
For smaller businesses there is also the Small Business Relief: if your turnover per tax year is up to AED 3,000,000, you can, upon election, be treated as if you had earned no taxable profit. You make this election anew for each tax year. It is not available to Qualifying Free Zone Persons.
For mainland companies, it is worth looking at registration in connection with your corporate structure. Read more on our page on company formation on the Dubai mainland.
Compliance note: This article does not replace tax advice in individual cases; the applicable regulations of the UAE tax authority (FTA) at the relevant time are authoritative.
The FTA sets its own deadlines depending on the type of company. Which one applies to you depends on the incorporation date and the type of your company.
For existing legal entities, the deadline depends on the month in which your licence was issued (FTA Decision No. 3 of 2024). A few examples: licence issued in January/February → deadline 31 May 2024, licence in March/April → 30 June 2024, licence in October/November → 30 November 2024. Newly incorporated companies (incorporated on or after 1 March 2024) have 3 months from the date of incorporation. Your exact deadline therefore follows from the issue month of your licence or the incorporation date; we clarify this for you individually.
If you miss a deadline, administrative penalties loom. That is why we usually advise registering early, even if your first financial year is still running.
Compliance note: This article does not replace tax advice in individual cases; the applicable regulations of the UAE tax authority (FTA) at the relevant time are authoritative.
Free zone companies also fall under the UAE Corporate Tax and must register. At the same time, there is the Qualifying Free Zone Person (QFZP). As a QFZP, you benefit under certain conditions from a preferential tax rate on so-called "Qualifying Income".
The requirements for this are demanding. They include, among others:
Not every revenue item of a QFZP is automatically Qualifying Income. If, for example, you earn from customers on the mainland, the 9% rate may apply to that, depending on the case.
Especially online service providers and digital business models often operate out of a free zone, for example coaches, agencies or providers of digital services with a predominantly international client base. For you, QFZP status can be particularly attractive, because a large part of your income comes from cross-border services and may count as Qualifying Income. Whether this fits in your case and how your individual income types are to be classified is something we look at case by case.
If you are forming a free zone company or have already formed one, it is best to classify your business model for tax purposes early. You can find more on our page on free zone formation.
Compliance note: This article does not replace tax advice in individual cases; the applicable regulations of the UAE tax authority (FTA) at the relevant time are authoritative.
You register online via the FTA portal EmaraTax. As a rule, this takes four steps:
Danho & Partner guides you through the entire process: we review your documents, handle the registration in the portal and file the confirmation in your company records.
Compliance note: This article does not replace tax advice in individual cases; the applicable regulations of the UAE tax authority (FTA) at the relevant time are authoritative.
Registration is not the end of it. As a registered company, you submit a corporate tax return to the FTA every year and pay the tax due.
This is part of the ongoing routine:
Correct corporate tax filing is impossible without clean bookkeeping. Our services around bookkeeping and tax registration provide the basis on which your tax reporting is built.
Compliance note: This article does not replace tax advice in individual cases; the applicable regulations of the UAE tax authority (FTA) at the relevant time are authoritative.
Many companies in the UAE are registered for both: value added tax (VAT) and corporate tax. The two systems calculate differently, have their own deadlines and their own reporting obligations. It is best to look at them together. That way you avoid contradictions in your records and save yourself duplicate work.
Compliance note: This article does not replace tax advice in individual cases; the applicable regulations of the UAE tax authority (FTA) at the relevant time are authoritative.
Advice in German and English in Dubai. Hannes Danho and his team speak German with DACH entrepreneurs. No language barrier, no misunderstandings, one dedicated point of contact.
More than 10 years of entrepreneurial experience. Hannes Danho has more than ten years of entrepreneurial experience and has been guiding clients for over seven years on corporate structure, corporate tax, VAT and ongoing compliance.
Clear processes instead of ad hoc advice. We guide you from the initial registration through the annual filing to ongoing bookkeeping, with clear responsibilities and fixed procedures.
Location: DIFC Gate Village 3. As a firm on the ground, we know the local rules first-hand and are well connected in the regional business environment.
Do I have to register my free zone company for corporate tax?
Yes. Free zone companies must register, regardless of whether they seek Qualifying Free Zone Person (QFZP) status. QFZP status only affects the tax rate for certain income; the registration obligation remains.
What happens if I miss the registration deadline?
If you miss the FTA registration deadline, it costs an administrative penalty of AED 10,000. If you submit the tax return late or pay late, AED 500 per month (or part of a month) is added in the first 12 months, and AED 1,000 per month thereafter. These are official FTA penalties, not fees.
Does the 9% corporate tax apply to total revenue?
No. The 9% applies to your taxable profit above the AED 375,000 threshold, not to revenue. If your profits stay below that, you pay no corporate tax.
Can a German company with activities in the UAE become taxable?
Yes, that is possible. Under certain conditions, a foreign company establishes a taxable permanent establishment in the UAE. That depends on exactly what you do here and to what extent, and we assess it case by case. Added to that are possible double taxation treaties and tax consequences in Germany.
How long do I have to keep tax-relevant records?
You retain tax-relevant records for the statutory retention period. Exactly how long that is in your case is something we clarify with you.
Do I need a separate TRN for corporate tax, or is my VAT TRN enough?
You need a separate number. The Tax Registration Number (TRN) for corporate tax is separate from the VAT TRN. Even if you already have a VAT TRN, you must still register separately for corporate tax.
Legal notice / tax disclaimer. The information provided on this page serves general guidance only and does not constitute tax or legal advice in individual cases. It does not replace individual advice from a qualified tax or legal advisor. Tax regulations, registration deadlines and compliance requirements in the United Arab Emirates are subject to ongoing changes by the Federal Tax Authority (FTA) and the legislator. The regulations of the UAE tax authority (FTA) applicable at the relevant time, as well as relevant Ministerial Decisions, are always authoritative. Danho & Partner Wirtschaftskanzlei LLC-FZ accepts no liability for the completeness, currency or accuracy of the general information on this page. For binding information on your individual tax situation, please contact us directly or the competent tax authority.
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