In the past, small businesses in the UAE enjoyed a tax-free environment, but the landscape has changed dramatically since the introduction of Corporate Tax in June 2023. While many large companies prepared in advance, a significant number of SMEs either missed the registration deadline or are still confused about how Corporate Tax affects them.

If you’re a founder, CEO, or director of a business in the UAE, here’s what you need to know — and why acting now can save you thousands.

Corporate Tax Isn’t Optional Anymore

The Federal Tax Authority (FTA) now mandates Corporate Tax registration and filing for businesses earning above AED 375,000 annually. Companies that missed the registration deadline are currently facing a AED 10,000 penalty — but here’s the good news: that penalty can still be waived.

According to recent updates, businesses that file their first Corporate Tax Return by 31st July 2025 may qualify for a full waiver of the late registration penalty. But time is running out.

The Most Common Mistakes SMEs Make

• Assuming they don’t qualify for Corporate Tax because they’re “small”
• Delaying registration or filing, hoping for more clarity later
• Relying on outdated advice or unverified social media sources
• Failing to separate personal and business finances correctly
• Missing important FTA deadlines, leading to fines and compliance issues

How to Stay Compliant and Avoid Penalties

If you’re unsure whether your business has done things correctly, the first step is to get expert advice. Corporate Tax compliance isn’t just about submitting a return — it involves understanding how your business structure, expenses, and revenue are evaluated.

This is where firms like Intelligent Finance Consultants (IFC) can help. IFC is a UAE-based accounting and tax advisory firm that specialises in supporting small businesses with stress-free Corporate Tax registration, filing, and advisory.

They’re currently offering a special Corporate Tax Filing service to help businesses file before the 31 July deadline — and potentially waive the AED 10,000 penalty.

Get Expert Help Before 31st July 2025

Corporate Tax is here to stay, and compliance will only become stricter as time goes on. Filing late doesn’t just invite penalties — it also puts your business credibility and bank relationships at risk.

Take a proactive step and file your Corporate Tax Return on time. It could save you thousands and set your business up for long-term success.

Learn more about Corporate Tax Filing Services in the UAE with IFC