What are the UAE Corporate Tax record-keeping requirements for 2026?

Under Federal Decree-Law No. 47 and Article 52 of the Tax Procedures Law, taxable persons must maintain records for 7 years. Arakan Protocol ensures these records remain in-situ within the UAE digital perimeter to satisfy data residency mandates.

How does Pillar Two affect multinational groups in the UAE?

Pillar Two introduces a 15% global minimum tax for MNE groups with revenues exceeding EUR 750 million. Arakan provides automated GloBE substantiation and jurisdictional nexus mapping to manage top-up tax liabilities.

What is the 0% Qualifying Free Zone Person (QFZP) status?

A QFZP is a Free Zone entity that maintains adequate substance in the UAE and derives Qualifying Income. Failure to demonstrate Core Income Generating Activities (CIGA) can result in a retroactive 9% tax liability.

Part I

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Corporate Tax (CT) Framework

Foundation

In Force

How to Elect for Small Business Relief (SBR)

Verify Revenue Threshold

Confirm that gross revenue is below AED 3 million for the current and all previous tax periods starting from June 2023.

Perform a Loss vs. Relief Analysis

Assess if electing for SBR is better than carrying forward tax losses.

Submit the Election via EmaraTax

Complete the annual Tax Return and formally elect for SBR within the portals dedicated section.

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Registration Deadlines & Penalties

The FTA enforces a staggered registration timeline; missing the window triggers an automatic AED 10,000 penalty.

▶New entities must register within 3 months of incorporation.
▶Staggered timelines are linked to trade license issuance dates.
▶Penalties are applied automatically via EmaraTax.

Small Business Relief (SBR)

SMEs with revenue below AED 3 Million can elect for Small Business Relief, effectively setting the tax rate to 0%.

▶Must be a formal election within the annual tax return.
▶Choosing SBR prevents carrying forward tax losses to future years.
▶Requires a multi-year loss/relief forensic analysis.

Demonstrate Proficiency

Validate your knowledge of this node to mint your verifiable forensic credential.

Begin Assessment Protocol

Statutory Clarifications (FAQ)

Q: Is Small Business Relief (SBR) applied automatically?

A: No, SBR is a formal election. Eligible businesses must actively select this relief within their annual Corporate Tax return on the EmaraTax portal.

Q: What is the penalty for late Corporate Tax registration in 2026?

A: The FTA applies an automatic, non-negotiable administrative penalty of AED 10,000 for missing the 3-month registration window.