Dubai, UAE — The Federal Tax Authority (FTA) has announced record levels of corporate tax compliance, with more than 640,000 companies now registered and thousands successfully filing their first tax returns on time.
The strong turnout highlights the growing tax awareness among UAE businesses and the success of the country’s digital tax system, led by the EmaraTax platform, which allows quick, paperless filing and payment.
High Compliance Reflects Business Awareness
According to Khalid Ali Al Bustani, Director General of the FTA, hundreds of thousands of corporate tax returns were processed for financial years ending December 31, 2024.
He attributed the high compliance rate to the ease of digital filing and the FTA’s ongoing efforts to educate and support businesses.
Thousands of support requests were handled daily during the filing peak, with round-the-clock assistance through the FTA Call Centre.
Supportive Measures for Voluntary Compliance
The UAE’s leadership continues to foster a business-friendly tax environment by introducing flexible measures that encourage voluntary compliance.
Recent FTA initiatives include penalty exemptions for late registration (if the return is filed within seven months of the first tax period), an extended filing deadline until December 31, 2024 for new entities, and a grace period until March 31, 2025 for updating tax records without penalties.
Digital Transformation with EmaraTax
All corporate tax steps — from registration to payment — can now be completed in minutes through EmaraTax.
Upgraded under the Zero Bureaucracy program, the system simplifies compliance, reduces paperwork, and improves overall user experience, helping companies focus more on growth and less on administrative tasks.
Nationwide Awareness Campaigns
The FTA’s two-year awareness plan has reached over 48,000 participants through 154 workshops and webinars.
Businesses also have access to updated guides, videos, and FAQs on the FTA website, ensuring they stay informed about the latest rules and procedures.
Ongoing communication through emails, SMS, and calls helps companies meet deadlines and avoid penalties.
In Summary:
The UAE’s corporate tax journey is off to a strong start. With over 640,000 businesses registered, streamlined digital systems, and supportive government initiatives, the FTA is setting a global benchmark for tax efficiency and voluntary compliance.
