By CA Surekha
With the UAE Corporate Tax framework maturing in 2025, Indian professionals advising UAE businesses must master every procedural, compliance, and strategic element. From registration to audit readiness, this guide distills the latest requirements into a single authoritative resource — now with a Compliance Matrix for quick reference.
Financial Year-End & Filing Deadlines
Every compliance plan begins with confirming the Financial Year-End (FYE) as stated in the Corporate Tax Registration Certificate. Filing deadlines are fixed based on this date, and incorrect assumptions can lead to steep penalties.
Key deadlines:
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FYE 31 December 2024 → Return due 30 September 2025
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FYE 31 March 2025 → Return due 31 December 2025
Compliance Tip: Never assume a “standard” year-end — verify each client’s actual FYE before planning.
Registration — The First Non-Negotiable Step
Businesses must register on the UAE Federal Tax Authority (FTA) EmaraTax portal to obtain a Tax Registration Number (TRN).
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Timeline: Within 3 months of starting the business or crossing AED 1 million turnover.
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Penalty for non-registration: AED 10,000
Record-Keeping & Documentation — The Pillar of Defence
Maintain complete financial records in line with IFRS and UAE law:
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Income statements, balance sheets, trial balances, cash flow statements
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Bank statements, contracts, leases
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Transfer pricing and related-party transaction documentation
Why it matters: Proper documentation safeguards against audit disputes and supports tax positions before the FTA.
Audit Requirements & Special Purpose Financial Statements (SPFS)
Audits are mandatory for:
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Businesses with annual revenue over AED 50 million
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Qualifying Free Zone Persons (regardless of revenue)
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Entities claiming 0% tax benefit (audited by a UAE licensed auditor)
Legal Reference: Ministerial Decision No. 84 of 2025 sets audit and group filing rules.
Penalties: Non-compliance fines can exceed AED 20,000.
Taxable Income Calculation & Filing
Step 1: Start with net accounting profit/loss
Step 2: Adjust per UAE Corporate Tax Law provisions
Step 3: Apply 9% tax rate on taxable profits above AED 375,000
Filing requirements:
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Submit returns via EmaraTax portal
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Attach audited accounts (if applicable)
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Include transfer pricing disclosures where relevant
Penalty risk: Late, incomplete, or inaccurate filings can attract penalties up to 200% of unpaid tax.
Penalties — The True Cost of Non-Compliance
| Offence | Penalty |
|---|---|
| Late registration | AED 10,000 |
| Late filing (first 12 months) | AED 500/month |
| Late filing (after 12 months) | AED 1,000/month |
| Late payment interest | 14% p.a. (compounded monthly) |
| Record-keeping failures | Substantial fines |
| Misleading declarations | Heavy penalties |
Transfer Pricing & Related Party Transactions
UAE enforces the arm’s length principle for all related-party dealings.
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Maintain transfer pricing documentation if revenue or transaction thresholds are met.
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Non-compliance risks targeted audits and severe penalties.
FTA Audit Preparedness
The FTA can conduct comprehensive audits and request supporting documents.
Best Practices:
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Keep records organized and easily retrievable
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Respond promptly to all audit notices
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Document rationale for all tax positions taken
Strategic Playbook for Indian Professionals in UAE Tax
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Verify FYE and filing deadlines from the Corporate Tax Registration Certificate
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Plan early financial closure to allow for smooth audit completion
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Collaborate with UAE licensed auditors for compliance with Decision No. 84 of 2025
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Proactively educate clients on transfer pricing
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Monitor regulatory updates to adapt compliance strategies swiftly
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Ensure 0% tax benefit claims are supported by airtight documentation and audit certification
UAE Corporate Tax 2025 — Compliance Matrix
| Compliance Area | Requirement | Timeline / Trigger | Penalty for Non-Compliance |
|---|---|---|---|
| Corporate Tax Registration | Register on FTA EmaraTax, obtain TRN | Within 3 months of business start or AED 1M turnover | AED 10,000 |
| Filing Deadline – FYE 31 Dec 2024 | File return via EmaraTax | By 30 Sep 2025 | AED 500/month (first year), AED 1,000/month thereafter |
| Filing Deadline – FYE 31 Mar 2025 | File return via EmaraTax | By 31 Dec 2025 | Same as above |
| Audit Requirement | Mandatory if revenue > AED 50M, Free Zone status, or 0% claim | Annual | AED 20,000+ |
| Record-Keeping | IFRS-compliant books & TP documentation | Continuous | Heavy fines for lapses |
| Tax Rate | 0% up to AED 375K profit; 9% thereafter | Annual | Penalties up to 200% of unpaid tax |
| Transfer Pricing | Maintain arm’s length documentation | When thresholds met | Significant fines + audit |
| Late Payment | Settle tax due | By filing deadline | 14% p.a. compounded monthly |
UAE Corporate Tax compliance in 2025 is no longer just about filing returns — it’s about strategic readiness, robust documentation, and proactive risk management. Indian professionals are uniquely positioned to bridge regulatory knowledge with practical execution, ensuring that UAE businesses not only meet deadlines but also maximize lawful tax efficiencies.
