How to Settle Corporate Tax in the UAE Using Emara Tax: A Quick Overview for Business

As corporate tax becomes a permanent fixture in the UAE’s evolving business landscape, EmaraTax has emerged as the central platform for managing tax compliance. Operated by the Federal Tax Authority (FTA), this digital portal simplifies registration, filing, and payment for businesses of all sizes.

If you’re running a business in the UAE, knowing how to use EmaraTax is now essential to staying compliant and avoiding penalties. 

- Corporate Tax at a Glance 

Under Federal Decree Law No. 47 of 2022, the UAE rolled out corporate tax on June 1, 2023. The rates are straightforward: 

• 0% tax on profits up to AED 375,000 (approx. US$102,110) 

• 9% tax on profits exceeding that threshold 

 Starting January 1, 2025, the Domestic Minimum Top-up Tax (DMTT) came into effect. This mandates that multinational groups with global revenues above EUR 750 million meet a 15% minimum effective tax rate under the OECD’s Pillar Two framework. Other recent updates include: 

• Sharjah introducing a 20% corporate tax on certain activities, offsettable against the 9% federal rate. 

• Entity-level taxation now permitted for unincorporated partnerships, such as professional firms, with FTA approval. 

• Possible R&D tax credits and high-value employment incentives of up to 30–40% are under review for 2026. 

- What is EmaraTax? 

EmaraTax is the FTA’s all-in-one portal for corporate tax services. It allows businesses to: 

• Register entities 

• File tax returns 

• Make secure payments 

• Track liabilities and payment history 

 Integrated with UAE PASS, the UAE Central Bank, and commercial banks, EmaraTax ensures seamless and secure transactions. It supports both bank transfers and card payments through MagnatiPay, the replacement for eDirham. 

- How to Pay Corporate Tax Using EmaraTax? 

Here’s a streamlined breakdown of the process: 

1. Login
   Sign in with UAE PASS or EmaraTax credentials and select your business entity. 

2. View Liabilities
   Go to “My Payments” to see pending tax amounts, payment history, and any penalties. 

3. Select Payment Option
   Choose to either “Select & Pay” specific liabilities or “Pay All” for full settlement. 

4. Make Payment 

1. GIBAN Transfer: Generate a reference number, add the FTA as a beneficiary, and complete payment via online banking. 

2. Card Payment: Use Visa or Mastercard via MagnatiPay. International cards are accepted in AED. 

5. Download Confirmation
   After payment, download the PDF receipt as proof of settlement. 

 - Best Practices for Compliance 

• Always double-check liabilities before making payments. 

• Restrict access to EmaraTax to trained staff or advisors. 

• Keep acknowledgment receipts and transaction records for audits. 

• Pay on time to avoid penalties. 

• Monitor your dashboard regularly for updates or discrepancies. 

- Common Challenges 

Some users may face issues like login failures with UAE PASS or payment delays. These can typically be resolved by resetting credentials or contacting FTA support. 

- Why It Matters 

Mastering EmaraTax is no longer optional, it has become an integral part of business setup in the UAE. As the government continues to digitize and refine its tax framework, staying informed and compliant will directly affect your company’s operations, reputation, and bottom line. 

Looking ahead, expect the platform to expand further with supporting incentives like R&D credits and cross-border compliance for multinationals. For businesses planning for company formation in Dubai or anywhere in the UAE, early familiarity with EmaraTax gives you a head start. 

Want to dive deeper? Read the full guide on our website for detailed steps, tips, and expert insights.