UAE Taxpayers Face Final Compliance Deadline Next Week

UAE businesses with financial years ending on December 31, 2025, must file their corporate tax returns and pay any amounts due by September 30, 2026.

The Federal Tax Authority (FTA) has reminded taxable persons that corporate tax returns and payments must be completed within nine months of the end of the relevant tax period. As of September 21, businesses approaching the September 30 deadline have nine days remaining.

Businesses that qualify for Small Business Relief are also required to file corporate tax returns. While the relief changes the tax treatment of eligible businesses, it does not eliminate the filing obligation.

September 30 deadline covers filing and payment

The FTA requires taxable persons to submit corporate tax returns within nine months of the end of each tax period. Any corporate tax payable must also be settled within the same timeframe.

For businesses with a December 31, 2025 financial year-end, both the return filing and payment deadlines fall on September 30, 2026.

Certain exempt persons that are required to register for corporate tax are subject to a related filing obligation. Their annual declarations must be submitted to the FTA within nine months of the end of their financial year.

EmaraTax provides corporate tax registration, return filing and payment services on a 24-hour basis. Taxable persons can file directly through the digital platform or appoint an approved tax agent to complete the process.

Ministry of Finance guidance also sets out the nine-month period for corporate tax filing and payment. Businesses must establish their relevant accounting period, as the statutory deadline is determined by each taxpayer’s tax period.

The ministry’s guidance advises businesses to determine their filing obligations, applicable elections and required financial information before submitting their returns. FTA guidance also requires taxpayers to maintain the necessary supporting records.

Late returns and unpaid tax attract penalties

Late corporate tax returns are subject to an administrative penalty of $136 (AED 500) for each month, or part of a month, during the first 12 months of delay.

From the 13th month onwards, the penalty increases to $272 (AED 1,000) for each month, or part of a month, that the return remains outstanding.

Unpaid corporate tax is subject to a separate monthly penalty calculated at an annual rate of 14 per cent. The penalty starts from the day after the payment deadline and continues to accrue on the same date each subsequent month.

September 30 therefore serves as both the filing and payment deadline for businesses covered by the September deadline. Returns submitted after the cut-off date are subject to the administrative penalty framework under UAE corporate tax rules.

The FTA also operates a late registration penalty waiver initiative for qualifying taxpayers. Eligible businesses can receive relief from the $2,723 (AED 10,000) late registration penalty if they satisfy the initiative’s conditions, including the specified timetable for filing their first corporate tax return.

The FTA expected the number of beneficiaries under the waiver initiative to exceed 91,000 during 2026. More than 68,600 taxable persons had benefited during 2025 and the first part of 2026 as of May.

Small businesses still need to submit returns

Small Business Relief is available to eligible UAE resident taxable persons with annual revenue of no more than $816,882 (AED 3 million), subject to the applicable statutory conditions.

Eligible businesses must elect to apply the relief when submitting the relevant corporate tax return. The FTA confirms that businesses using the relief must still register for corporate tax, submit a simplified return and maintain supporting records.

Businesses that qualify for the relief are treated as having no taxable income for the relevant tax period. They must nevertheless retain evidence of revenue to demonstrate that they meet the eligibility requirements.

The Ministry of Finance extended Small Business Relief in August 2026 to cover tax periods ending on or before December 31, 2029. The revenue threshold remains capped at $816,882 (AED 3 million).

FTA guidance requires taxable persons and specified exempt persons to retain relevant corporate tax records for at least seven years after the end of the applicable tax period.

Businesses approaching the September 30 deadline can submit their returns through EmaraTax at any time. Taxpayers can also appoint FTA-approved tax agents to file returns on their behalf.