Corporate Tax for Sole Establishments in UAE

Corporate tax registration for sole establishments in UAE is mandatory only when their annual income exceeds AED 1 million within a calendar year. Businesses with a turnover less than AED 1 Million do not have to register for corporate tax in UAE.

Paying corporate tax in the UAE is now part of business life. Many people think it’s only for big companies. That’s not true. If you run a sole establishment, the rules also apply to you.

If the turnover from business activities in the UAE exceeds AED 1 million in a Gregorian calendar year, a natural person (resident or non-resident) must comply with the Corporate Tax Law. This includes registering for Corporate Tax with the FTA, filing Corporate Tax returns, and paying the applicable tax.

Let’s break it down in simple words. No legal talk. Just what you need to know in 2025.

What is a Sole Establishment in the UAE?

A sole establishment is a business owned by one person, with no partners or shareholders, just you.

You might be a:

• Freelancer
• Consultant
• Online seller
• Designer
• Influencer

If your name is on the trade license as a 100% shareholder of the company and you run the show, that’s a sole establishment.

Applicability of Corporate Tax to Sole Establishments

Maybe yes, maybe no. It depends on how much you earn.

As per Federal Tax Authority, businesses in UAE must register and pay corporate tax if:

• You turnover is more than AED 1 million in a year
• Your income comes from business activity in UAE
• You are not claiming Small Business Relief.

Corporate Tax Rates in UAE (2025)

Here’s how tax is charged:

This tax is on your profit, not your total income. So, if you made AED 800,000 and spent AED 500,000 on rent, staff, or tools, your tax is only on the remaining AED 300,000. That’s below the limit. So, you pay zero tax.

Corporate Tax Registration Deadline

• Deadline: 30 June 2025
• Applies to: Businesses that started before 1 January 2024
• Penalty for late registration: AED 10,000

Tax Return Filing Deadline

• Deadline: Within 9 months after the end of your financial year
  • For example, if your financial year ends on 31 December 2024, your return must be filed by 30 September 2025

Tax Payment Deadline

• Same as return filing deadline (i.e. 9 months after year-end)

What is Small Business Relief?

The UAE helps small business owners with a rule called Small Business Relief. If your revenue is under AED 3 million, you are eligible to apply.

You won’t pay tax. You won’t need an audit report. But you still need to:

• Register for tax
• Keep records
• File a corporate tax return

This relief is valid until the end of 2026. So, take it if you qualify.

Documentation required for corporate tax filing for sole establishment

After the corporate tax registration in UAE, keep these papers ready:

• Emirates ID
• Trade license
• Passport
• Business bank account info
• Profit and loss statement
• Details of your business type

All of this can be uploaded to EmaraTax, the online portal for tax.

How to File Corporate Tax as a Sole Establishment?

Corporate tax filing is not difficult, but you must follow each step carefully. Here’s a basic guide:

Step 1: Register

Do this through EmaraTax. It takes 10–15 minutes.

Step 2: Prepare Your Numbers and Financials

Add up your revenue and costs. Ensure that your records align with your bank statements.

Step 3: Submit the Corporate Tax Return

Fill out the tax form online. If you made a profit above AED 375,000, the portal will calculate your tax.

Step 4: Make the Corporate Tax Payment

Pay through GIBAN or Credit/Debit card options given by the tax portal.