More than 640,000 companies have registered under the UAE’s corporate tax scheme as the Federal Tax Authority reported strong uptake in tax returns and payments. The filings cover entities whose financial year ended 31 December 2024, and the FTA credited its digital infrastructure and awareness efforts for high compliance rates.
Khalid Ali Al Bustani, Director-General of the FTA, announced that “hundreds of thousands” of corporate tax returns and annual declarations have already been processed via EmaraTax. He described the outcome as a demonstration of business confidence in the country’s tax framework and the efficiency of the digital platform.
Daily support requests during peak filing periods were met through the FTA’s call centre and digital channels, while administrative facilitation measures were deployed to ease the burden on companies. The UAE Cabinet has allowed exemption from penalties for late registration if the first tax return is filed within seven months of the first tax period. Meanwhile, companies established on or after 1 June 2023 whose first tax period ended by 29 February 2024 were granted extended deadlines up to 31 December 2024. Registrants delaying tax record updates between 1 January 2024 and 31 March 2025 were allowed penalty-free amendments.
The FTA attributed the compliance surge to a two-year awareness campaign. Over 154 virtual and in-person sessions have engaged about 48,000 participants across the Emirates, supported by guides, infographics, social media communication, SMS reminders and direct outreach.
The EmaraTax platform, continuously refined under the “Zero Bureaucracy” initiative, enables round-the-clock registration, filing and payment in a few steps. The system aims to reduce administrative friction and align with global best practices, thereby encouraging voluntary compliance.
Further pressure for full compliance is expected: the FTA has scaled up its inspection regime, performing more than 93,000 inspection visits in 2024—an increase of 135 per cent over the prior year. New digital tools are being integrated to detect irregularities and non-compliance.
While companies with lower revenues may qualify for relief, all registered businesses must submit returns even if no tax is due. Industries dependent on cross-border operations and entities within free zones face additional complexity in classifying income, applying transfer pricing rules and determining eligibility for reliefs.
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