Key takeaways
- A UAE company's first corporate tax period is its first financial year, and the Federal Tax Authority (FTA) accepts a first financial year of 6 to 18 months as the first tax period.
- A company whose first financial year started before 1 June 2023 has, as its first corporate tax period, the next 12-month financial year that starts on or after 1 June 2023, according to the FTA's public clarification CTP003 of 13 August 2024.
- The FTA calculates a company's first tax period from the information given at corporate tax registration, so a company doesn't apply to the FTA to set it.
- A UAE company's corporate tax return and payment are due nine months after the last day of its tax period, so the first tax period decides the first deadline.
- A company can apply to change its tax period only for reasons listed in FTA Decision No. 5 of 2023, and only within 6 months after the original tax period ends.
- An individual's tax period is always the Gregorian calendar year, so the first tax period rules in this guide apply to companies and other juridical persons.
What is a company's first corporate tax period in the UAE?
A tax period is the financial year, or part of it, for which a corporate tax return must be filed, and the first tax period is the first one your company has to report. Article 57 of Federal Decree-Law No. 47 of 2022 sets the financial year as the Gregorian calendar year or the 12-month period for which the company prepares financial statements.
The FTA's public clarification CTP003 (13 August 2024) explains how this works for a newly established company: if its first financial year begins on or after 1 June 2023, that year is the first tax period. The corporate tax law applies to tax periods starting on or after 1 June 2023, which is why that date keeps appearing.
How do I work out my first tax period?
Start from your first financial year, test it against the 1 June 2023 start date and the 6 to 18 month range, and then compare the result with what you declared at registration. The steps below follow the FTA's clarification.
- Find the start date of your first financial year: for a new company, usually the date it starts operating under its licence, unless your financial statements begin on a different date.
- Find the end date of that financial year: either 31 December or the year end used in your financial statements.
- Check whether the first financial year began before 1 June 2023. If it did, your first tax period is the next 12-month financial year that begins on or after 1 June 2023.
- If it began on or after 1 June 2023, count the months. A first financial year of 6 to 18 months is accepted as the first tax period.
- Compare your result with the dates you gave when you registered for corporate tax on EmaraTax, because the FTA calculates the period from that information.
- Add nine months to the end date to get your return and payment deadline.
Say a trading company starts on 15 March 2025 and chooses 31 December as its year end (a hypothetical example). Its first financial year runs about nine and a half months, inside the accepted range, so that is its first tax period and the return would be due by 30 September 2026.
Now take an older company (also hypothetical) with a 31 December year end whose first financial year ran from 1 January 2023 to 31 December 2023. That year started before 1 June 2023, so its first tax period is the next 12-month financial year: 1 January 2024 to 31 December 2024, with the return due by 30 September 2025.
One grey area: the published clarification doesn't say what happens when a first financial year is shorter than 6 months. If your company starts late in the year, plan the year end so it lands inside the 6 to 18 month range, and confirm with the FTA or an adviser before relying on a date.
How does my situation change the first tax period?
The answer depends on how and when your business started, and the FTA's clarification gives a different rule for each case. The table below sets them side by side, as of 27 October 2026, using CTP003 for companies and the FTA Corporate Tax General Guide (section 6.2.1) for individuals.
| Situation | First tax period |
|---|---|
| Company formed under the Commercial Companies Law, first financial year starts on or after 1 June 2023 | That first financial year, if it runs 6 to 18 months |
| First financial year started before 1 June 2023 | The next 12-month financial year that begins on or after 1 June 2023 |
| Foreign-incorporated company effectively managed and controlled in the UAE | The financial year, or part of it, that begins on or after 1 June 2023 |
| Non-resident with a UAE permanent establishment, activities began before 1 June 2023 | The first financial year beginning on or after 1 June 2023 |
| Non-resident with a UAE permanent establishment, activities began on or after 1 June 2023 | From the start of the activities to the end of the non-resident's financial year, between 6 and 18 months |
| Individual (natural person) | The Gregorian calendar year, always |
Free zone companies need a second look. The clarification is written around companies established under the Commercial Companies Law, and free zone companies are incorporated under their own zone's regulations. The published text doesn't treat them separately, so a free zone company should check its dates against its EmaraTax registration rather than assume.
6 to 18 months: the length of first financial year the FTA accepts as a company's first corporate tax period. Source: FTA Corporate Tax Public Clarification CTP003, 13 August 2024, checked 27 October 2026.
Can I change my first tax period?
A taxable person can apply to the FTA to change the start and end dates of its tax period, but only on the conditions in FTA Decision No. 5 of 2023, made under Article 58 of Federal Decree-Law No. 47 of 2022. The conditions are narrow, as of 27 October 2026.
| Condition | What FTA Decision No. 5 of 2023 requires |
|---|---|
| Reason | Liquidation; aligning financial years with a tax group, head office, parent or subsidiary (for financial reporting or a tax relief); or a valid commercial, economic or legal reason |
| Filing status | The return for the period being changed hasn't been filed yet |
| Type of change | Extend the current tax period to a maximum of 18 months, or shorten the next one to between 6 and 12 months |
| Timing | Apply within 6 months after the original tax period ends |
| Limit | A shortening application can't cover a prior or current tax period |
The decision doesn't describe how the FTA assesses an application, so don't assume approval; speak to an adviser before the first year closes.
What does the first tax period decide?
The return and the corporate tax payable are both due nine months after the period ends, under Articles 53(1) and 48 of Federal Decree-Law No. 47 of 2022.
Article 56 also requires records to be kept for seven years after the end of the tax period. A first tax period ending 31 December 2026, for instance, would give a deadline of 30 September 2027.
If you'd rather not track these dates by hand, the free UAE compliance calendar lists them for your company: a free calendar of your company's UAE tax and compliance deadlines, personalised from a few questions, as a PDF and calendar file.
What most guides don't tell you
A short or long first period doesn't change the thresholds. The FTA's clarification says thresholds aren't pro-rated, so the Small Business Relief revenue threshold stays the same for a nine-month first period. The exception it names is the de minimis amount for the general interest deduction limitation rule, currently AED 12 million.
Closing the company in the first period doesn't cancel the registration duty. The FTA says that ceasing business during the first tax period still requires a tax deregistration application, submitted within 3 months of the triggering event, and the obligation to register remains.
Which deadlines apply to your company?
Your first tax period sets your first corporate tax deadline, and your VAT, licence and audit dates sit alongside it. The free UAE compliance calendar turns a few answers into a dated list you can add to your own calendar.
Frequently asked questions
When is my first corporate tax return due?
Your first corporate tax return is due nine months after the last day of your first tax period. The corporate tax payable is due by the same date.
What is a Tax Registration Number for corporate tax?
A Tax Registration Number is the identifier the FTA assigns to your company once it is registered for corporate tax. Check your EmaraTax account for yours, because returns and payments are filed against it.
What is Small Business Relief and do I qualify?
Small Business Relief is a relief for businesses whose revenue stays under a threshold set by the Minister of Finance, under Article 21 of Federal Decree-Law No. 47 of 2022. Check the current threshold and the periods it covers on the Ministry of Finance website, and note that the FTA's clarification says the threshold isn't pro-rated for a short first period.
How do I register for corporate tax on EmaraTax?
You register through your EmaraTax account, using your licence details and company information. The FTA calculates your first tax period from the information you give at registration, so enter your financial year dates carefully.
When do I need to register for corporate tax?
A resident company incorporated on or after 1 March 2024 must register within three months of its incorporation, establishment or recognition, according to FTA Decision No. 3 of 2024. Companies licensed earlier had deadlines set by licence month, and those have passed.
About Qawi · Qawi is a corporate services firm licensed in the Sharjah Media City (SHAMS) free zone, handling company formation, visas and PRO, bookkeeping, VAT and corporate tax for UAE businesses. Guides are researched from FTA, Ministry of Finance and free zone sources. Qawi on LinkedIn
Sources
- FTA: Corporate Tax Public Clarification on the First Tax Period (CTP003, 13 August 2024)
- MoF: Federal Decree-Law No. 47 of 2022 and its amendments
- FTA: Decision No. 5 of 2023 on the Conditions for Change in Tax Period
- FTA: Corporate Tax General Guide, section 6.2.1
- FTA: Decision No. 3 of 2024 on specified timeframes for corporate tax registration
- FTA: Resident juridical persons registration deadlines infographic
Last checked: 27 October 2026
General information, not tax or legal advice for your specific situation.