Your Guide to Paying Corporate Tax Liabilities in the UAE

The corporate tax regime in the UAE has now established a comprehensive new compliance environment for businesses operating in the Emirates. Now that we are in 2025, business owners, CFOs, and entrepreneurs must stay up to date with the UAE’s corporate tax filing process.

Corporate tax filing in the UAE is a mandatory compliance obligation as per the UAE corporate tax law.  All taxable persons in the UAE are required to submit a corporate tax return within the stipulated timeframe set by the UAE Federal Tax Authority (FTA). Missing the deadline may lead to significant fines and penalties.

Are you prepared to meet UAE corporate tax filing obligations? Companies in the UAE with annual taxable income exceeding AED 375,000 are required to pay 9% UAE corporate tax rate. All UAE businesses with a financial year ending on 31st December 2024 must complete their UAE corporate tax filing by 30th September 2025 to ensure UAE corporate tax compliance and UAE FTA regulations.

The UAE FTA’s EmaraTax portal makes corporate tax submission straightforward, but timely and accurate preparation is crucial for compliance. In this blog, we’ll explore how your business can prepare effectively, what details to focus on, and how Jaxa Auditors, a trusted corporate tax consultant in the UAE, can support you in achieving a hassle-free UAE corporate tax filing process.

Demystifying Corporate Tax Liability in the UAE

Corporate tax liability in the UAE is a legal financial obligation that a business is required to pay to the UAE Federal Tax Authority after calculating its taxable income for a given financial year. It is determined after calculating taxable income, applying deductions, exemptions, and adjustments as per the UAE Corporate Tax Law.

• 0% for taxable income up to AED 375,000.
• 9% for taxable income above AED 375,000.
• Rate of not less than 5% for multinational companies with global revenue of EUR 750 million under global tax rules (OECD Pillar Two) is effective from January 01, 2025.

Why Tax matters for UAE business in 2025:

For UAE businesses in 2025, corporate tax liability management is key to:

• Stay compliant with the UAE Corporate Tax Law.
• Avoid fines and penalties for delayed or inaccurate filing.
• Build a strong compliance record with the UAE’s FTA.

When is Corporate Tax Liability Due in the UAE?

Timely settling of corporate tax liability in the UAE within the stipulated deadline is essential to remain compliant with the UAE FTA. The clock starts ticking as soon as your financial year ends. The UAE FTA mandates corporate tax filing and payment dues within nine months from the end of the fiscal year. Missing the corporate tax filing or payment deadline can expose your business to penalties and compliance issues. Stay ahead of the UAE’s tax deadlines—Jaxa, a trusted corporate tax consultant in the UAE, helps businesses file and settle their corporate tax liabilities on time, ensuring full UAE FTA compliance.

Example

For companies with a financial year ending December 31, 2024, the deadline for both tax return filing and liability payment falls on September 30, 2025. To remain UAE FTA compliant, businesses should adopt a proactive approach.

Actionable Tips

• Plan Early: Do not wait until the deadline. Review taxable income and other deductions once the financial year ends.
• Financial Preparation: Secure funds in advance to avoid last-minute cash flow challenges.
• Digital precision: Utilize the UAE FTA’s Emaratax portal and accounting tools to file returns and payments seamlessly.
• Expert Support: Rely on a UAE FTA tax agent and the best corporate tax consultant in the UAE, such as Jaxa, to safeguard your business from costly mistakes and errors.

Step-by-Step Guide to Settling Corporate Tax Liability in the UAE

It is crucial to pay your corporate tax liability accurately and on time to remain compliant with the UAE’s FTA. Our corporate tax consultant in the UAE helps businesses simplify this process, avoid penalties, and make timely payments. Follow this step-by-step guide to make UAE corporate tax payments easier and less stressful.

Step 1: Pre-Payment Preparation

Prepare Documents:

• Audited financial statements and supporting records
• Corporate tax return (filed or draft)
• Details of prepayments, credits, or adjustments
• Evidence for deductible expenses and exemptions

Checklist for UAE Corporate Tax Compliance

• Ensure your UAE corporate tax registration is active with the UAE FTA.
• Verify your business and contact information are up to date in the FTA Emaratax portal.
• Confirm that your appointed UAE tax advisor, such as Jaxa, has experience in handling UAE corporate tax filings.

Step 2: Finalize Corporate Tax Liability

• Examine the taxable income shown in your corporate tax return.
• Confirm that all allowable deductions, exemptions, and adjustments have been correctly claimed.
• Calculate your final corporate tax payable to the UAE FTA.

Step 3: Log in to EmaraTax

• Use UAE Pass or EmaraTax credentials.
• Confirm permissions for UAE corporate tax payment.

Step 4: Navigate to the My Payment section

• Click “My Payments”
• Here, you can settle your UAE corporate tax obligations either completely or partially.

Tip: Flexible Payment Options

1. Full Payment: Settle your entire corporate tax in a single transaction for convenience.
2. Installment: Companies with higher tax obligations can divide payments but all installments must be paid within the deadline.

Step 5: Review Pending Corporate Tax

• Go to ‘My Outstanding Payments’.
• Check total due, overdue amounts, and transaction history.
• Verify the payable amount and tax period.

Step 6: Choose payment method

You can settle your corporate tax in the UAE using:

• Credit or debit card
• Bank transfer via GIBAN (a unique IBAN generated for each taxpayer)

Ensure the GIBAN reference number and payment instructions are correctly noted.

Step 7: Make Payment

1. Select ‘Pay All’ or ‘Select & Pay’ depending on whether you want to pay the full or partial liability amount.
2. Follow the on-screen prompts to complete the payment.

Step 8: Save Payment Confirmation

1. After payment, a receipt or confirmation reference will be generated.
2. Save this for record-keeping and audit purposes.

Step 9: Optional Verification

• Confirm your payment reflects in the UAE FTA p
• Retain all payment receipts and documentation for at least 7 years in line with UAE Corporate Tax regulations.
• Connect with tax experts like Jaxa for guidance.

Best Practices for UAE Corporate Tax Compliance

• Stay informed: Watch the UAE FTA communications for updates on tax laws, deadlines, and instructions for filing.
• Automate the Process: Implement accounting software to automate the tax calculations accurately and generate accurate documentation.
• Professional Support: Engage UAE corporate tax consultants- Jaxa to ensure compliance and minimize errors.
• Audit Readiness: Keep financial records accessible for a minimum of 7 years.
• Get Expert Support: Leverage certified tax professionals who have the knowledge and experience to help you with corporate tax obligations.

Jaxa Chartered Accountants- Best Corporate Tax Return & Payment Consultants in the UAE

While the UAE’s corporate tax filing and payment may seem straightforward, it can be daunting for companies in the UAE. Partnering with the UAE FTA and a trusted UAE corporate tax consultant is often the best approach. Jaxa, a leading accounting and auditing firm in the UAE, brings over 18 years of experience in providing comprehensive corporate tax services to a diverse range of clients.

Our expertise covers:

• UAE Corporate Tax Registration
• UAE Corporate Tax Return Filing
• 100% compliance with the UAE Corporate Tax Laws
  

Our team streamlines the entire EmaraTax process, including UAE FTA registration, return preparation and submission, liability settlement, and proper record retention, helping you stay compliant, meet deadlines, and avoid penalties.

Get Ready to file your corporate tax returns and settle liabilities on time in the UAE—with Jaxa by your side.