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Dormant or zero revenue company: do you still file a UAE Corporate Tax return?

Short answer

Yes. A UAE company with no revenue, or one that did not trade at all, is still a taxable person. It must be registered for Corporate Tax and it must file a return for every tax period until it is deregistered. Having nothing to pay does not remove the duty to file.

For 2025 calendar year companies, that return was due on 30 September 2026. If yours is not in, the late filing penalty is already running.

Who this guide is for

  • Companies set up but not yet trading
  • Companies that paused operations for the year
  • Holding or investment vehicles with no income
  • Companies that have stopped trading but are not yet closed

Why a zero revenue company must file

Under the Corporate Tax Law (Federal Decree Law No. 47 of 2022), a company incorporated in the UAE is a resident taxable person. Registration and the annual return are obligations of the company itself, not of its income. The FTA has also confirmed that businesses eligible for Small Business Relief must still register and file their returns on time.

Small Business Relief: usually the simplest route

If revenue is AED 3 million or less in the current tax period and in every earlier tax period, the company can elect Small Business Relief inside the return. The company is then treated as having no taxable income, and the FTA allows a simplified return.

Things to check first:

  • Relief is elected in the return. It is not automatic.
  • It is not available to Qualifying Free Zone Persons or to members of large multinational groups.
  • It applies to tax periods ending on or before 31 December 2029.
  • The trade off: in a year where you elect the relief, tax losses cannot be carried forward. If the company spent money this year and expects profits later, compare both options before you elect. A tax professional can confirm which is better for you.

What the return still needs

Even with zero revenue, prepare:

  • Financial statements for the period (they can show nil revenue and your actual expenses)
  • The trade licence and Corporate Tax registration number
  • Your tax period dates
  • Bank statements for the period, to support the figures
  • The Small Business Relief decision, if you elect it

If the company has stopped trading

Filing continues until the company is deregistered for Corporate Tax. Apply for deregistration within three months of the company ceasing its business (for example, after liquidation or cancelling the licence). A late deregistration application carries its own penalty, and every return until deregistration is still due.

Penalties to know

  • Late return: AED 500 for each month or part of a month for the first 12 months, then AED 1,000 per month (Cabinet Decision No. 75 of 2023, as amended).
  • Filing stops further monthly penalties from building up. It does not remove penalties already charged.
  • Late registration and late deregistration carry separate penalties.

Checklist

  1. Confirm the company is registered for Corporate Tax. If not, register first.
  2. Confirm your tax period and deadline.
  3. Prepare financial statements, even if revenue is nil.
  4. Decide on Small Business Relief, considering the loss trade off.
  5. File the return, even if the tax due is zero.
  6. If the business has stopped, apply to deregister.

How Dembri helps

Dembri prepares the return from your records, with the working behind each figure. A practising UAE tax professional reviews it. You approve and submit it yourself in your own EmaraTax account, with our guidance. We never ask for your login.

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If the return is late, see the late Corporate Tax return service and the late Corporate Tax guide.

FAQ

My company made no money. Do I owe tax? Usually not, but you still owe the return.

Is there a "nil return" option? There is no separate form. You file the normal return, or the simplified one if you elect Small Business Relief, showing nil or low figures.

Can I skip filing and deregister later? No. Returns are due for every period until deregistration.

Sources