EmaraTax Corporate Tax Filing Walkthrough UAE 2026

Calculating Taxable Income

The starting point for calculating the taxable income is to determine the taxable person’s accounting income as per their financial statements.

Generally, the formula is as follows:

Corporate tax return filing in UAE is completed online through the FTA’s system (EmaraTax platform).

Step 1 – Prepare your financials and CT working papers

1. Start with understanding your net profit (or loss) from Financial Statements
2. Apply adjustments for:
   • Remove Exempt Income
   • Non-deductible expenditure
     • Government fines, late filing and compliance penalties
     • Personal expenses paid by the company
     • Dividends and profit distributions
     • Inflated management fees or above market salaries (i.e. result of excessive or not following the arm’s length principles)
     • Charitable donations or sponsorships framed as donations
   • Capital and personal expenditure
   • Interest limitation rules
   • Apply reliefs or exemptions allowed under the law
     • Previous year allowed tax loss relief
     • Exempt income categories
3. Arrive at Taxable Income

Read more on how to calculate corporate tax.

Step 2 – Confirm your details in the EmaraTax dashboard.

1. Identify the taxable person
2. Confirm the taxable period you are filing for
3. Ensure that all your details are updated

Step 3 – Calculate the tax you owe.

1. Apply applicable tax rate
   
   For non QFZP:
   Below AED 375,000: 0%
   Excess of AED 375,000; 9%
   
   For QFZP:
   • Confirm de minimis threshold first
   • Calculate 0% on qualifying income
   • Calculate 9% on nonqualifying income
2. Compute CT owed
3. Calculate your net income after taxes
4. For a negative taxable income or recording a loss in the filed returns, make sure that you meet the conditions.
   • The same person(s) must hold at least 50% ownership of the business from the loss year to the year it is used; OR
   • If ownership changes by more than 50%, the business must continue the same or similar activity.
   • There is no need for separate application, you just need to reflect it when filing.
5. When filing the corporate tax return with the Federal Tax Authority, you report the loss in the period where it occurred, specifically under the return fields for “Tax Loss Carryforward”

Step 4 – Complete the return in EmaraTax and attach the required documents.

1. Submit declaration
2. Pay the tax you owe in the same deadline
3. Maintain all relevant records and documents for 7 years following the end of the relevant Tax Period.