UAE Companies Finalise Compliance Ahead of Corporate Tax Filing Deadline

UAE businesses and finance departments are completing their compliance procedures ahead of the September 30, 2026, corporate tax filing deadline. The deadline applies to companies whose tax year concluded on December 31, 2025, representing their second compliance cycle governed by Federal Decree-Law No. 47 of 2022.

The regulatory cycle coincides with UAE economic growth of 3% year-on-year in the first quarter of 2026, reaching Dh485 billion ($132 billion), driven primarily by non-oil activity. Companies established on or before March 1, 2024, must register, alongside entities generating an annual turnover exceeding Dh1 million.

Tax experts from ICAI Dubai Chapter and the Taxation Society highlighted that corporate preparedness remains varied, particularly among small and medium-sized enterprises. Key challenges include maintaining accurate tax reconciliations, managing related-party transactions and transfer pricing, assessing expense deductibility, and correctly evaluating free zone tax exemptions.

Advisers stressed that filing and payment constitute separate legal obligations. Under the regulations, late filing incurs a penalty of Dh500 per month for the first 12 months and Dh1,000 per month thereafter, while late payment is subject to a penalty calculated at 14% per annum on unpaid tax.