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Introduction
2025 is a decisive year for small businesses in the UAE, with corporate tax compliance no longer being optional, even for those with limited income. While large corporations may have in-house tax teams, startups and SMEs must navigate these waters carefully. At Finzoryx, we have seen many businesses overlook key requirements and end up with unnecessary fines.
Here is a practical, simplified guide to help you stay compliant and focused on growth.
1. Do You Need to Register for Corporate Tax?
Corporate tax in the UAE is applicable to all businesses and commercial activities, but here is the threshold:
- If your taxable income is below AED 375,000, the tax rate is 0%, but registration is still mandatory.
- If your taxable income exceeds AED 375,000, a 9% tax rate applies on the amount above the threshold.
Note: Even if you earn below the threshold, you must still register and file a corporate tax return. Failing to register could result in a penalty of AED 10,000.
2. What Are the Key Deadlines in 2025?
| Activity | Deadline |
|---|---|
| Corporate Tax Registration | Based on your license issue month |
| Tax Return Filing - FY 2024 | 30 September 2025 |
| Tax Payment - FY 2024 | 30 September 2025 |
Finzoryx Tip: Don’t wait till the last minute. Your registration deadline depends on your license issuance month — reach out to us if you are unsure.
3. Common Mistakes by Small Businesses
Here are common pitfalls we have observed:
- Assuming registration is not needed below AED 375,000
- Not maintaining formal accounting records
- Relying only on bank statements or estimates
- Filing tax returns late
4. What You Must Keep Ready
To stay compliant, keep the following documents organized:
- Valid Trade License
- Emirates ID of owners/shareholders
- Financial statements or bookkeeping data
- List of all business activities
- Details of related party transactions (if any)
5. What if You are a Freelancer or Small Consultant?
Even freelancers under permits or solo consultants must:
- Register for corporate tax
- Maintain proper books of accounts
- File an annual tax return
Why Finzoryx?
At Finzoryx, we specialize in simplifying tax compliance for entrepreneurs, freelancers, SME's and startups. Our Penalty Shield service gives you:
- Clarity on laws
- Compliance with all deadlines
- Confidence in your financials
Let us handle the regulations so you can focus on building your dream.
Need Help?
Contact Finzoryx for a free consultation on your corporate tax obligations:
Phone/Whatsapp: +971-503978121
Email: connect@finzoryx.com