UAE Corporate Tax Sees Record Compliance: FTA

640,000 firms now under UAE corporate tax as FTA reports record compliance

Dubai: More than 640,000 businesses are now registered under the UAE’s corporate tax regime, with record levels of compliance reported by the Federal Tax Authority. The FTA said high volumes of tax returns filed and payments made within statutory deadlines reflect growing awareness among businesses and the effectiveness of the country’s digital tax infrastructure.

According to the Authority, the first full cycle of corporate tax filings - covering financial years ending December 31, 2024 - was completed successfully by the end of September 2025, marking a key milestone in the rollout of the UAE’s corporate tax framework.

Strong response in first full filing cycle

The FTA said hundreds of thousands of corporate tax returns and annual declarations were processed from registered businesses whose tax periods ended in December 2024. Officials described compliance levels as exceeding international benchmarks, attributing the outcome to clear legislation and streamlined electronic procedures.

Tax filings and payments were handled through the EmaraTax platform, which provides round-the-clock digital services. The Authority said the system allowed businesses to complete registration, filing and payment steps efficiently, even during peak periods when thousands of requests were processed daily.

Awareness and support drive voluntary compliance

The Authority credited rising compliance to increased tax awareness across business sectors, supported by sustained outreach and guidance. A two-year national awareness programme included more than 150 in-person and virtual sessions attended by tens of thousands of participants.

In addition to workshops, the FTA published guides, videos and explanatory materials that are regularly updated to reflect legislative changes. Businesses also received reminders and assistance through calls, messages and email notifications aimed at helping them meet deadlines and avoid penalties.

Flexible measures and exemptions introduced

Officials highlighted several measures designed to encourage voluntary compliance during the transition phase. These included exemptions from administrative penalties for late registration in specific cases, provided returns were filed within defined grace periods.

The FTA also extended filing and payment deadlines for certain entities established after mid-2023 and allowed registrants additional time to update tax records without penalties. These steps, the Authority said, helped reduce friction during the initial implementation of the corporate tax regime.

Digital systems reduce administrative burden

All corporate tax procedures are completed through the EmaraTax platform, which has been enhanced under the UAE’s Zero Bureaucracy programme. The FTA said the platform significantly reduced administrative burdens, improved user experience and delivered broader economic benefits by simplifying compliance for the private sector.

Officials noted that efficient compliance systems are essential as the UAE’s tax framework matures, supporting transparency while allowing businesses to focus on operations and growth.

Implications for businesses entering the UAE

The scale of registrations and high compliance rates signal a shift toward a more structured tax environment in the UAE. For new and existing enterprises, understanding corporate tax obligations has become a central part of operational planning.

This regulatory maturity is particularly relevant for entrepreneurs and companies evaluating long-term establishment decisions, including those considering business setup in dubai as clarity around tax compliance, filing systems and enforcement increasingly shapes entry strategies.

The FTA said it will continue monitoring compliance trends while expanding guidance and digital support as the corporate tax system evolves.