28 Oct 2025
The UAE corporate tax introduced by Federal Decree-Law No. 47 of 2022 levies a tax of 9 percent on all taxable income exceeding AED 375,000, except that government entities, qualifying free zone companies, and some investment funds are tax exempt.
In 2023, Federal Decree-Law No. 60 introduced the concept of Domestic Minimum Top-up Tax (DMTT) for multinational groups, which is aligned with the OECD Pillar Two rules and ensures that large groups are subject to at least an effective rate of 15%. The Cabinet Decision No. 142 of 2024 confirms that the DMTT rules will apply to fiscal years beginning on or after 1 January 2025. The threshold for DMTT is €750 million (in consolidated global revenues) in at least two of the four preceding fiscal years in the consolidated financial statements of the ultimate parent entity.
AMCA’s tax experts integrate these laws into structured compliance roadmaps so businesses remain aligned with both local requirements and global tax standards.
Protecting Clients from Administrative Penalties
Compliance failures under the Cabinet Decision No. 75 of 2023 can be costly:
• AED 10,000 for failure to maintain records, if its first violation. Repeat violation (within 24 months of the prior violation): AED 20,000 per violation
• AED 500 per month for late corporate tax return submissions, for the first 12 months after the due date. AED 1,000 per month (or part thereof) from the 13th month onward until it is filed.
• Failure of the Taxable Person to settle the Payable Tax: A monthly penalty of 14% per annum, for each month or part thereof, on the unsettled Payable Tax amount, starting from the day following the due date of payment, and continuing on the same date monthly thereafter until the payable tax is fully settled. In short, 14% annualized penalty for non-payment of tax liabilities.
• Fixed and percentage-based penalties for incorrect returns or failure to disclose errors voluntarily.
AMCA proactively prevents such risks by implementing internal audit checks, filing reminders, and error-detection reviews—ensuring clients meet every deadline accurately.
Precision in Corporate Tax Returns
According to the FTA Corporate Tax Return Guide (CTGTXR1), every taxable person must file returns and pay taxes within 9 months from the end of their financial year. The return includes taxable income, exemptions, transfer pricing adjustments, and group relief claims.
AMCA uses a structured compliance framework:
• Early Assessments – Pre-year-end reviews to forecast tax liabilities.
• Documentation Support – Ensuring records meet Arabic submission standards.
• Relief Applications – Claiming small business, restructuring, or group reliefs where eligible.
• FTA Alignment – Filing directly through EmaraTax with all required schedules.
Ensuring Long-Term Audit Compliance in the UAE
Our audit compliance UAE methodology involves continuous monitoring, staff training, and digital tax tools that align with Cabinet and Ministerial Decisions. By combining expertise in corporate tax with proactive audits, AMCA provides peace of mind for businesses that want to focus on growth without fearing regulatory setbacks.
Why AMCA Auditing is Recognized as a Top Audit Firm
AMCA Auditing protects businesses by undertaking compliance audits by comparing the in-house processes to FTA regulations. These checks indicate areas of deficiency before governing bodies knock on their doors, so the business is confident of not only just doing the correct filing but also doing it within the law.
This layered compliance strategy cements AMCA’s position as a top audit firm trusted across industries.
Compliance Today, Growth Tomorrow
Full compliance with the UAE’s evolving corporate tax law is not optional—it’s essential. With the right partner, businesses can avoid heavy penalties, ensure audit readiness, and focus on scaling sustainably.
At AMCA Auditing, we combine regulatory expertise, advanced compliance tools, and hands-on client support to deliver reliable corporate tax services in the UAE that safeguard both finances and reputation.
Let AMCA handle your corporate tax strategy, audit compliance, and return filing—so you can focus on growing your business with confidence.
FAQs
Q1. What is the deadline for filing corporate tax returns in the UAE?
Taxable persons must submit their returns within 9 months after the end of their tax period.
Q2. What are the key penalties for late filing?
Late submission of returns can result in monthly fines starting at AED 500, doubling after twelve months.
Q3. Who is exempt from corporate tax in the UAE?
Government entities, qualifying free zone persons, investment funds, and certain pension funds are exempt, subject to conditions.
