Aug 29, 2025
Corporate tax is still new in the UAE, and many businesses are figuring it out as they go. The good news is, the rules are clear. The bad news? If you miss the Sept. 30, 2025 deadline, you’ll pay for it. Literally.
For companies with a financial year ending on Dec. 31, 2024, this is the first real test of compliance. Let’s talk about what this deadline means, what happens if you ignore it, and how to stay on the safe side without unnecessary stress.
The Sept. 30 deadline explained
Here’s the simple version: your corporate tax return is due nine months after your financial year closes. If your books closed on Dec. 31, 2024, your deadline is Sept. 30, 2025.
This applies to almost every business: mainland companies, free zone entities, and even sole proprietors once their income crosses the FTA’s threshold. So if you thought you were exempt, double-check before it’s too late.
What if you miss it?
The FTA isn’t gentle with late filers. Here’s what you’re looking at:
AED 500 per month for every month you’re late.
After 12 months, the penalty doubles to AED 1,000 per month.
Higher chance of being flagged for an audit.
Possible impact on any exemptions or free zone benefits.
And if you’re a sole proprietor earning more than AED 1 million in 2024, you must register by March 31, 2025. Miss that, and the fine is AED 10,000—before you’ve even filed your first return.
How to stay out of trouble
You don’t need complicated strategies. A bit of discipline goes a long way:
Register now if you haven’t. Waiting only increases the risk of slipping past the cut-off.
Keep your books clean. Don’t wait until September to sort receipts and ledgers.
File early. Everyone rushes at the last minute, and systems get slow. Beat the traffic.
Save your paperwork. Transfer pricing reports, contracts, invoices—keep them handy in case the FTA asks.
Get expert help. If tax isn’t your strong point, a professional can save you money and headaches.
Why early filing is worth it
Technically, you can wait until Sept. 30. But do you really want to? Filing earlier means:
Less pressure.
More time to fix errors.
No risk of missing out because of a technical glitch.
Think of it like paying a bill. You can wait until the very last day, but it feels a lot better to get it out of the way sooner.
Where Business Heads can step in
For many companies, this is their first time filing corporate tax in the UAE. Mistakes are common, but avoidable. At Business Heads, we help businesses register, prepare financial statements, and file their returns properly.
Whether you’re a small business owner or a larger company, our team makes sure you don’t miss deadlines or pay penalties you could have avoided.
Final Thoughts
The Sept. 30 deadline is closer than it seems, and missing it isn’t worth the cost. Register early, get your books in order, and file before the rush.
And if you’d rather not worry about the details, let us handle the process. You focus on running your business, and we’ll keep you compliant.
