A foreign company that operates in the UAE through a branch with a permanent establishment must apply to register for Corporate Tax with the Federal Tax Authority (FTA). For a permanent establishment that came into existence on or after 1 March 2024, the application is due within six months of the date the permanent establishment exists. Late registration carries an administrative penalty of AED 10,000.
TL;DR
- A branch that is a permanent establishment triggers Corporate Tax registration for the foreign company that owns it.
- For a permanent establishment that came into existence on or after 1 March 2024, the application is due within six months.
- A UAE nexus, such as income from UAE property, runs its own three-month clock, and the earlier deadline applies.
- Late registration carries an AED 10,000 penalty, so start the clock on the day the permanent establishment exists.
What makes a branch a permanent establishment
A permanent establishment (PE) is a place of business or other form of presence in the UAE of a non-resident person, determined under Article 14 of the Corporate Tax Law (Federal Decree-Law No. 47 of 2022). The FTA's guidance covers two common forms: a fixed place PE, and a dependent agent PE, where an agent acting for the foreign company is not independent of it (FTA, Corporate Tax: Permanent Establishment).
Timing matters because the clock starts when the PE exists. The FTA says the date of existence is when the PE is recognised for UAE Corporate Tax purposes. For a fixed place PE, that is when all requirements are met, including a degree of permanence of six months in the UAE (FTA public clarification, 11 June 2024). The same clarification notes that an applicable international agreement can set a longer period for recognising a PE.
Your registration deadline
| Your position | Deadline to apply | Source |
|---|---|---|
| PE came into existence on or after 1 March 2024 | Six months from the date the PE exists | FTA public clarification, 11 June 2024 |
| UAE nexus established on or after 1 March 2024 (for example, income from UAE immovable property) | Three months from establishing the nexus | FTA, 27 March 2024 |
| Both a PE and a nexus | The earlier of the two deadlines | FTA public clarification, 11 June 2024 |
Example: a branch whose PE is recognised on 1 May 2026 must apply by 1 November 2026. A branch recognised on 15 October 2026 must apply by 15 April 2027. Both examples count six months from the PE date, so confirm the start date with your adviser before filing.
What missing the date costs
The FTA states that non-compliance with the registration timelines results in an administrative penalty of AED 10,000 (FTA public clarification, 11 June 2024). The FTA's March 2024 announcement ties these penalties to Cabinet Decision No. 75 of 2023 (FTA, 27 March 2024).
Once registered, the standard rates apply: 0% on taxable income up to AED 375,000 and 9% on the portion above it (FTA Basic Tax Information Bulletin).
How to register
Corporate Tax registration is submitted on the FTA's EmaraTax portal (FTA, 27 March 2024).
- Confirm the PE start date. Use dated evidence such as the lease start, the date staff or an agent began work in the UAE, or the first trading date.
- Calculate the deadline. For a PE on or after 1 March 2024, count six months from that date.
- Check for a UAE nexus. If one exists, apply the three-month clock and use the earlier deadline.
- Submit on EmaraTax. Log in to the FTA's EmaraTax portal (eservices.tax.gov.ae) and submit the Corporate Tax registration request for the foreign company. A company already registered for VAT or excise makes a separate Corporate Tax request.
- Keep a dated file. Store the PE start evidence, the submission confirmation and the Tax Registration Number once issued.
Bookkeeping the branch from day one
Keep a separate branch ledger so profits attributable to the PE can be traced. Price dealings between the branch and the head office on an arm's-length basis. The Corporate Tax Law defines Market Value as the price that could be agreed in an arm's-length transaction between persons who are not Related Parties (Federal Decree-Law No. 47 of 2022). Document the basis for each recharge.
Frequently asked questions
Does a foreign company's UAE branch need Corporate Tax registration?
Yes, where the branch is a permanent establishment of the non-resident company, or where the company has a UAE nexus such as income from UAE immovable property.
What is the deadline for a branch PE that started after 1 March 2024?
Six months from the date the PE came into existence, which the FTA measures from when the PE is recognised for Corporate Tax purposes.
Is VAT registration the same as Corporate Tax registration?
No. A taxpayer already registered for VAT or excise makes a separate Corporate Tax registration request on EmaraTax.
What is the penalty for late registration?
An administrative penalty of AED 10,000, under the FTA's 11 June 2024 public clarification.
Related guides
- Corporate tax registration in the UAE
- How to register for corporate tax in the UAE via EmaraTax
- Registering a new free zone business for corporate tax
Reviewed by Gautam Sanoj, Senior Tax Advisor. Last reviewed 8 October 2026. Deadlines reflect FTA Decision No. 3 of 2024 and the FTA's 11 June 2024 public clarification as at this date. Confirm the PE start date and any treaty position before filing.
