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A UAE company with no income still files a corporate tax return 9 months after year-end. Nil returns, Small Business Relief and deregistration compared.
Every UAE company registered for corporate tax must file a return for every tax period, even with no income, within 9 months of the end of its financial year. A dormant company has two routes: file a nil return (or claim Small Business Relief inside that return), or deregister. There is no third option.
Many owners only discover this when a penalty notice arrives for a holding company or a shelf entity that has done nothing for a year. This guide covers how to file a nil corporate tax return in the UAE, which route fits your situation, and what to do if a deadline has already passed.
Do you have to file a corporate tax return if your UAE company has no income?
The Federal Tax Authority (FTA) is clear on this. In its own words, all corporate taxable persons, regardless of the level of income, must file. The AED 375,000 figure that gets quoted everywhere is a 0% tax band. It is not a filing threshold, and it does not excuse anyone from registering or filing.
Registration creates the duty to file. As long as your company holds a corporate tax registration (a TRN), returns are due for every period. If your trade licence is still valid, the company almost certainly still exists for tax purposes, whether or not anyone has invoiced a dirham.
A nil return is not a special form. It is a full corporate tax return that reports zero taxable income or a loss. In practice, a dormant company rarely has truly zero figures. Licence renewal fees, bank charges and accounting or audit costs usually produce a small loss, and reporting that loss is perfectly fine. The aim is an accurate return, not a row of zeros.
Nil return, Small Business Relief or deregistration: which applies to you
The right filing depends on whether the company is pausing or finished, and on its size and status.
Your situation | What to file | Why |
|---|---|---|
Registered, no revenue this year, plans to trade again | A corporate tax return each year; consider electing Small Business Relief | Registration stays live, so every period needs a return |
Revenue up to AED 3 million, not a QFZP, not in a large multinational group | A return electing Small Business Relief | The relief treats you as having no taxable income for tax periods ending on or before 31 December 2029, but you still file |
Business has ended for good | A deregistration application within 3 months of cessation, a final return to the cessation date, then licence cancellation | Ending the registration is the only way to stop the filing cycle |
Exempt Person required to register | An Annual Declaration | Exempt Persons declare rather than file a return |
Small Business Relief is a choice you make inside the return, not a way to skip it. You must elect it for each period. Read more on Small Business Relief, now extended to 2029. Before electing it, ask your tax agent how the relief affects any losses you are carrying, because that can change which route is better.
If the company is truly finished, see our guide to deregistering for corporate tax and VAT.
Deadlines for dormant companies, including 31 December 2026 for March year-ends
The rule is simple: the return and any payment are due within 9 months of the end of the tax period. A nil return has exactly the same deadline as a return showing millions in profit.
Financial year-end | Return due |
|---|---|
31 December 2025 | 30 September 2026 (passed, so late if not filed) |
31 March 2026 | 31 December 2026 |
30 June 2026 | 31 March 2027 |
31 December 2026 | 30 September 2027 |
Don't assume your year-end; check your tax period on EmaraTax, since some companies have a first period longer or shorter than 12 months. A company that stopped trading mid-year still files for the whole period unless it deregisters. Stopping work in May does not end your tax year in May. Our full guide to UAE corporate tax filing deadlines and late penalties covers more scenarios.
How to file a nil corporate tax return on EmaraTax, step by step
The process for a nil corporate tax return in the UAE is the same as for any return. The figures are just smaller.
Confirm the tax period and registration. Log in to EmaraTax with UAE Pass and check that the company is still registered and which period is due.
Bring the books up to date. Prepare financial statements for the period, including licence fees, bank charges and professional costs. Companies with revenue under AED 3 million may use the cash basis.
Decide on Small Business Relief. Check eligibility: revenue of AED 3 million or less, not a Qualifying Free Zone Person, not part of a large multinational group, and a tax period ending on or before 31 December 2029.
Complete the return. Enter the figures from your financial statements, including zero revenue where that is the truth.
Review, declare and submit before the due date. Keep the submission receipt with your records.
Keep records for 7 years. That includes the financial statements, bank statements and the receipt.
You don't have to do this yourself. A tax agent listed on the FTA register of tax agents can file on the company's behalf. Here's what an FTA-registered tax agent does.
What a missed nil return costs, and how to put it right
Having no tax to pay does not protect you from administrative penalties. These run from the due date regardless of whether you owed anything.
Penalty | Amount |
|---|---|
Late corporate tax return | AED 500 a month for months 1 to 12, then AED 1,000 a month |
Late payment | 14% a year (only bites if tax is due) |
Late registration | AED 10,000 (waived if the first return is filed within 7 months of the end of the first tax period) |
Late deregistration | AED 1,000, then AED 1,000 a month, up to AED 10,000 |
A nil return filed 4 months late costs AED 2,000, even though no tax is owed. Leave it a year and you are at AED 6,000 for a company that earned nothing.
If you are behind, file the overdue returns now, because the monthly penalty stops growing once the return is in. Then check our guide to the UAE corporate tax penalty waiver to see whether your situation qualifies for relief. If a return you filed earlier was wrong, consider a voluntary disclosure rather than waiting for the FTA to find it.
Free zone companies, VAT and the filings that keep running when trading stops
Free zone status does not exempt you from filing. A Qualifying Free Zone Person files a corporate tax return, cannot use Small Business Relief and must have audited financial statements, even in a quiet year. Audits are also required for companies with revenue above AED 50 million and for every tax group; see which UAE companies need an audit.
VAT runs on a separate clock. While the company is VAT-registered, it files a VAT return for every tax period within 28 days of its end, including periods with no sales. A late VAT return costs AED 1,000, rising to AED 2,000 for a repeat within 24 months. If taxable supplies have stopped, VAT deregistration has its own 20 business day deadline.
Cancelling a trade licence does not cancel the tax registration either. The FTA will not complete deregistration until all returns are filed and all tax and penalties are paid, so tidy up the backlog first.
How Cosmos helps: Cosmos keeps the books and files UAE corporate tax and VAT returns through an FTA-registered tax agent, including nil returns and the final returns and deregistration applications when a company closes. If you have a dormant entity you've been meaning to sort out, book a call and we'll look at what's due.
FAQ
Do I have to file a corporate tax return if my UAE company made no money? Yes. Every company registered for corporate tax files a return for each tax period, regardless of income, within 9 months of the year-end. The return simply reports zero income or a small loss.
Is a free zone company exempt from filing? No. Free zone companies file corporate tax returns like any other. A Qualifying Free Zone Person also needs audited financial statements and cannot claim Small Business Relief.
What is the difference between a nil return and Small Business Relief? A nil return reports zero taxable income or a loss based on your actual figures. Small Business Relief is an election made inside the return that treats an eligible company with revenue up to AED 3 million as having no taxable income. Either way, you file a return.
My licence has expired. Do I still need to file? Yes, if the corporate tax registration is still active. An expired or cancelled licence does not cancel the TRN, so returns keep falling due until the FTA approves deregistration.
Can I file a nil return myself, or do I need a tax agent? You can file it yourself on EmaraTax using UAE Pass. Many owners use a tax agent from the FTA register for accuracy and to keep the deadlines under control.
What is the penalty for not filing a nil corporate tax return? AED 500 a month for the first 12 months, then AED 1,000 a month. The fact that no tax is owed does not reduce it.
How do I stop filing returns for a company I no longer use? Apply to deregister within 3 months of the business ending, file a final return to the cessation date, settle any penalties, then cancel the licence. Until the FTA approves deregistration, the filing duty continues.
A dormant company costs very little to keep compliant and a surprising amount to neglect. If you would rather hand the whole cycle over, Cosmos can take it from the next return onwards.
