Introduction:

The UAE’s introduction of Corporate Tax marked a major policy shift, aligning the nation with global tax standards. Since its announcement, both local and foreign businesses have been asking:
“When exactly did UAE Corporate Tax come into effect?”

In this article, we break down the timeline, legal milestones, and the compliance deadlines you must meet to avoid penalties — all based on what businesses in the UAE are searching for.

Corporate Tax Timeline: Key Dates to Know

Date	Milestone
31 Jan 2022	Corporate Tax officially announced by the UAE Ministry of Finance
9 Dec 2022	Federal Decree-Law No. 47 of 2022 on Taxation of Corporations and Businesses issued
1 June 2023	Corporate Tax law comes into force — first tax period begins
2024 onward	Businesses begin registering and filing based on their fiscal year
2025 (Jan 1)	Pillar Two 15% global minimum tax effective for large MNEs

Legal Basis: UAE Corporate Tax Law

Corporate Tax is governed under:

• Federal Decree-Law No. 47 of 2022
  → Issued by the Ministry of Finance
  → Regulates the taxation of income of corporations, Free Zone entities, and individuals conducting business activities

You can access the official law via the Federal Tax Authority (FTA) portal.

When Does Corporate Tax Apply to My Business?

If your financial year starts on or after June 1, 2023:

• Your first tax period begins from that financial year
• Your return must be filed within 9 months from the end of your financial year

Examples:

Financial Year	First Tax Period	Return Filing Due
1 Jan 23 – 31 Dec 23	1 Jan 24 – 31 Dec 24	30 Sep 25
1 July 23 – 30 June 24	1 July 23 – 30 June 24	31 March 25

Frequently Searched Questions and their Answers

Is UAE Corporate Tax already active?

Yes, the law came into effect on 1 June 2023, but when it applies to your business depends on your financial year.

Was Corporate Tax applied retrospectively?

No. Corporate Tax is not retroactive. It applies only to income earned in or after the first applicable tax period following 1 June 2023.

Do businesses need to register before June 2023?

Not necessarily. The FTA sets deadlines based on license issue dates and business types. But businesses should register as early as possible to avoid late penalties.

Does this apply to Free Zone companies too?

Yes. Free Zone entities must also comply, even if they qualify for 0% corporate tax (as a Qualifying Free Zone Person).

Is the 15% tax applicable now?

No, the 15% global minimum tax applies from 1 January 2025, only to large multinational enterprises (MNEs) with global revenues ≥ €750 million.

Key Compliance Takeaways:

• Corporate Tax is active for all businesses with financial years beginning on or after June 1, 2023
• First returns will be filed from 2024 onward, depending on your fiscal year
• Registration is mandatory, regardless of whether you owe tax or qualify for relief
• Freelancers and individuals must register if business income exceeds AED 1 million
• Non-compliance can lead to penalties under FTA regulations

Summary of Deadlines & Application:

Entity Type	Applicable From	Required Action
UAE Mainland Companies	FY beginning on/after 1 June 2023	Register, maintain books, file returns
Free Zone Entities	Same as above	Same; maintain QFZP status for 0% tax
Freelancers / Individuals	Upon crossing AED 1M revenue	Register and file return
Multinational Groups (MNEs)	1 Jan 2025	Subject to 15% global minimum tax (DMTT)

Need Help With Corporate Tax Compliance?

At Think Biz Management Consultancies, we assist with:

• Timeline mapping for your tax period
• Registration on the FTA portal
• Return filing preparation
• Tax structuring for Free Zone or cross-border operations

Get in touch today to ensure your business stays compliant — and penalty-free.

 

Contact us today for a free consultation.

Contact number: ‪+971 50 983 0334‬

Email ID: info@alphabets.ae