Who Must Apply For UAE Corporate Tax Registration In 2026?

In 2026, the United Arab Emirates (UAE) implemented a new tax system, requiring all companies and businesses to register for corporate tax. This was a major change, as previously the country had no corporate tax in place.

But who exactly is required to apply for corporate tax registration in the UAE? In this article, we will go through the criteria for mandatory UAE corporate tax registration:

Resident jurisdical persons:

Companies incorporated in the country are at the top of the list. This includes mainland businesses and freezone entities alike. If you hold a valid trade license and operate as a formal company, registration is required. The law sees these entities as taxable persons from the moment they start earning.

Natural persons with business income:

Individual people running commercial activities must also register. Freelancers, sole proprietors, and professionals offering services fall into this group. If you have a license in your own name and earn income above the threshold, you are considered a taxable person. Personal salary from employment does not count, only business income.

Freezone persons:

Freezone companies have a special position in the tax system. They must register for corporate tax like any other business. However, they can continue to enjoy a zero percent tax rate on qualifying income if they meet all the conditions. Registration is still mandatory even if you expect to pay no tax.

Exempt persons automatically excluded:

Certain entities never need to register. Government bodies, extractive businesses, and pension funds are carved out by law. A qualifying investment fund may also fall outside the scope if it meets strict criteria. These exemptions are specific and do not apply to ordinary commercial ventures.

Small business relief applicants:

Businesses with revenue below the three million dirham threshold can apply for small business relief. This relief allows them to submit simplified returns and pay no tax. Even with this relief, registration remains a requirement. You cannot claim the relief without first being in the system.

Non-residents with a nexus:

Companies based outside the country must register if they have a permanent establishment inside. A permanent establishment means a fixed place of business or a dependent agent concluding contracts on your behalf. Simply selling goods to customers here without a physical presence does not trigger registration.