VAT on Commercial Property in the UAE: Everything Investors Need to Know
21/07/2025
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With the enforcement of the UAE’s corporate tax regime under Federal Decree-Law No. 47 of 2022, all businesses—whether operating on the mainland or in free zones—must now comply with a clearly defined set of tax obligations governed by the Federal Tax Authority (FTA). One of the most critical steps in this compliance journey is completing the corporate tax registration online process through the EmaraTax portal.
Whether you're a newly incorporated entity or an established business, registration is mandatory for all taxable persons, including natural persons with over AED 1 million in taxable income from business or commercial activity. The FTA has emphasized the importance of completing the corporate tax registration application on time to avoid administrative penalties, which can go up to AED 10,000 for late registration.
In this comprehensive guide, we explain the registration in the UAE, including the required documents, legal framework, step-by-step guide to registering on EmaraTax, consequences of missing deadlines, and how Young & Right, a leading corporate tax service provider in Dubai, ensures full compliance for businesses operating in the UAE.
Under the UAE corporate tax law, registration is mandatory for all legal persons and natural persons meeting the definition of a taxable person. This includes:
→ UAE mainland companies
→ Free zone businesses, including qualifying free zone persons
→ Branches of foreign companies
→ Natural persons with AED 1 million+ annual net profits from commercial activity
The requirement to register for corporate tax applies equally to entities operating under valid trade licenses and even to those that fall under exempt persons or legal entities that do not currently generate taxable income. This includes certain exempt persons such as government bodies, pension funds, or public benefit entities, all of which must still register to formalize their exempt status.
FTA deadlines are determined based on your original trade license issuance date or the date of incorporation for new taxable persons. Missing these deadlines not only triggers hefty penalties but may also disqualify you from relief schemes and qualifying intra-group transactions benefits.
Failing to register through the FTA website within the prescribed timeline results in an administrative penalty of AED 10,000, as per Cabinet Decision No. 75 of 2023.
Late corporate tax registration can disrupt your business operations in several ways:
→ Ineligibility for Small Business Relief or 0% tax rate for free zone entities
→ Inability to secure a Tax Registration Number (TRN) or Tax Residency Certificate
→ Barred access to FTA services like the user manual, document clarification, or registration updates
→ Missed eligibility for tax refunds, qualifying shareholdings, and other regulatory requirements
Regardless of whether your company earned capital gains, had intra-group transactions, or declared no net profits, the obligation to register remains binding for all legal structures and entity types.
To comply with international standards, all taxable persons in the UAE must register for corporate tax via the FTA’s official EmaraTax portal. This includes entities engaged in natural resources, professional services, and other licensed activities.
The EmaraTax platform simplifies the registration process and helps businesses manage their tax liabilities and submissions digitally.
Use UAE Pass or email to create an account for future tax-related activities.
Specify whether you’re a natural person or legal entity, and define your legal structure and financial year.
Submit details of business activities, ownership, and head office location, including branches.
Include your trade license, Emirates ID or passport of the authorized signatory, MOA/AOA, and tenancy contract or utility bill.
Ensure the signatory has a UAE mobile linked to EmaraTax.
Review and submit the form. The FTA typically responds within 20 working days. Businesses must register for UAE corporate tax within nine months of their first financial year to avoid penalties.
To successfully register for corporate tax in the UAE, businesses must prepare a comprehensive set of documents that establish their legal identity, business structure, and financial profile. These documents are essential for completing your UAE corporate tax registration online and securing a valid Tax Registration Number (TRN) through the EmaraTax platform.
→ A valid UAE trade license covering the business activities you carry out.
→ Emirates ID or passport of the authorized signatory, confirming the person responsible for tax matters.
→ Memorandum or Articles of Association (MOA/AOA) to define your company’s legal structure and ownership.
→ A recent utility bill or a tenancy contract showing the registered office address in the UAE.
→ Details of your financial year to help align your filings with FTA requirements for the relevant tax period.
→ A list of actual business activities conducted, which determines your eligibility to remain subject to specific tax rules or exemptions.
→ Optionally, audited or management accounts can be submitted to support your application—particularly helpful if your company reports capital gains earned or other complex revenue streams.
Preparing these documents in advance ensures your online corporate tax registration is completed without unnecessary delays. It also confirms your status as a taxable person under UAE corporate tax law and helps maintain long-term compliance with tax in the UAE.
For businesses operating in the UAE, compliance with corporate tax obligations is no longer optional—it is a legal requirement under the Federal Tax Authority (FTA). As companies work to register for corporate tax, file returns, and stay compliant across the relevant tax period, many discover that navigating the EmaraTax system and regulatory nuances can be overwhelming without expert help.
This is where professional corporate tax services make a substantial difference. Whether you're a new entity registering for the first time or an established business looking to optimize your taxable income and ensure accuracy in corporate tax returns, working with a reliable advisor like Young & Right can significantly reduce your exposure to errors, rejections, and penalties.
→ Navigate complex FTA requirements and submit applications that meet Federal Tax Authority standards.
→ Determine your applicable corporate tax rate and calculate your taxable income in line with current regulations.
→ Maintain complete and up-to-date EmaraTax profiles for successful corporate tax registration.
→ Respond to FTA queries, address clarifications, and rectify any rejections or omissions during the process.
→ Align your accounting year with the relevant tax period required by the FTA for timely filing.
→ Monitor obligations and provide assistance with the accurate submission of corporate tax returns.
→ Provide long-term support to ensure full compliance with UAE corporate tax law and evolving regulatory frameworks.
At Young & Right, we provide end-to-end support to help your business stay fully compliant with UAE corporate tax law, avoid unnecessary fines, and optimise your corporate tax position—especially as rules evolve under the oversight of the Federal Tax Authority (FTA).
Our team handles the entire corporate tax registration process, from setting up your EmaraTax profile to securing timely approval. We ensure your business is classified correctly under FTA guidelines and meets all requirements for registering for corporate tax without delays—whether you're a mainland entity or operating as one of the many free zone businesses seeking 0% corporate tax rate qualification.
We actively monitor FTA updates, circulars, and clarifications. By keeping your company informed of every change in corporate tax laws, thresholds, or reporting standards, we help you avoid costly compliance mistakes and stay prepared for any shifts in corporate tax payments and filing schedules.
Our accountants maintain monthly ledgers in line with IFRS standards, ensuring all financial records are audit-ready and fully aligned with FTA requirements. With our tax-ready bookkeeping, your corporate tax returns are seamless and error-free—minimising audit risk and penalty exposure.
If your business is penalized due to delayed filing, inaccurate information, or other issues, Young & Right can submit a thorough penalty reconsideration request on your behalf. These appeals are backed by legal documentation and aligned with the FTA’s administrative procedures, improving your chances of a successful waiver.
We specialize in guiding free zone businesses and foreign investors through the nuances of UAE corporate tax law. Our team ensures you retain Qualifying Free Zone Person status to benefit from the 0% corporate tax rate, while remaining compliant with both domestic and international tax standards.
Beyond compliance, Young & Right helps you plan ahead. From restructuring for tax efficiency and managing qualifying shareholdings, to optimising intercompany transactions and group-wide compliance, we align your business strategy with long-term corporate tax optimisation under UAE law.
With our full-service approach—spanning corporate tax registration, bookkeeping, advisory, and dispute resolution—Young & Right positions your company for stability, efficiency, and regulatory protection in today’s evolving tax environment.
Completing your corporate tax registration online is no longer optional—it’s a legal and strategic necessity under the UAE corporate tax regime. As the landscape evolves, your business must remain up to date, avoid tax registration delays, and ensure compliance with all FTA regulatory requirements.
Engage professional tax consultants like Young & Right to ensure that your UAE corporate tax registration is accurate, complete, and aligned with your business goals—so you can avoid penalties, access benefits, and grow confidently in the UAE.
Avoid AED 10,000 penalties by letting Young & Right handle your UAE corporate tax registration—from EmaraTax setup to full FTA compliance.
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