# How corporate tax instalments work in the UAE

> Corporate tax instalments UAE: learn how UAE corporate tax is paid, due dates, instalment rules under FTA guidance, and what businesses owe.

Source: https://einvoicedirect.ae/uae-corporate-tax/corporate-tax-instalments-uae  
Last updated: 2026-06-05  
Publisher: EInvoice Direct (Massive FZCO), UAE e-invoicing software.

## What are corporate tax instalments in the UAE?

Corporate tax instalments in the UAE refer to splitting a company's annual corporate tax liability into scheduled payments instead of one lump sum. Under Federal Decree-Law 47 of 2022, the UAE corporate tax regime currently requires a single payment with the annual return, but the Federal Tax Authority (FTA) can issue payment arrangements for businesses that qualify.

This guide explains what UAE businesses need to know about paying **corporate tax instalments uae** style, how the current annual payment model works, when instalment requests may apply, and how to plan cash flow around your [UAE Corporate Tax](https://einvoicedirect.ae/uae-corporate-tax) obligations. We use only figures published by the UAE Ministry of Finance (MoF) and the FTA.

## The UAE corporate tax payment model

The UAE introduced federal corporate tax under Federal Decree-Law 47 of 2022. It applies to financial years starting on or after June 1, 2023. Unlike some other countries that require quarterly advance payments, the UAE uses an annual self-assessment model.

### Headline rates you are paying instalments on

- 0% on taxable income up to AED 375,000.
- 9% on taxable income above AED 375,000.
- 15% Domestic Minimum Top-up Tax (DMTT) for large multinationals with global revenue of EUR 750M or more, effective from January 2025.
- Small business relief: available for businesses with revenue up to AED 3M through 2026.

### One annual payment, not quarterly

Right now, the FTA does not require automatic quarterly or monthly instalments the way personal income tax systems do in some countries. Corporate tax is paid in full when the annual return is filed. The deadline is within 9 months of the end of the financial year. For a calendar year ending December 31, 2024, that means filing and paying by September 30, 2025.

For a full walkthrough of the return process, see our [UAE Corporate Tax Return Guide](https://einvoicedirect.ae/uae-corporate-tax/uae-corporate-tax-return-guide).

## When can a business pay corporate tax in instalments?

The FTA can grant instalment plans on a case-by-case basis. This is not an automatic right. A company that cannot pay its corporate tax in one payment may apply to the FTA for a structured payment arrangement.

### Typical grounds for an instalment request

- Genuine cash flow constraints supported by financial statements.
- A one-off tax liability that is large relative to working capital.
- Pending VAT refunds or other receivables from government entities.
- Restructuring, dispute resolution, or recovery from a documented business shock.

### What the FTA usually reviews

When reviewing an instalment request, the FTA generally looks at the company's compliance history, the size of the liability, the proposed schedule, and whether the business can demonstrate ability to pay over time. Late payment penalties may still apply on unpaid balances, so an approved instalment plan is not the same as a waiver.

## Corporate tax payment timeline at a glance

The table below shows when corporate tax payments are due based on common UAE financial year ends. All figures follow the 9-month rule set out under Federal Decree-Law 47 of 2022.

| Financial year end | Tax return and payment due | First year covered |
| --- | --- | --- |
| May 31 | February 28 (following year) | FY ending May 31, 2024 |
| June 30 | March 31 (following year) | FY ending June 30, 2024 |
| September 30 | June 30 (following year) | FY ending September 30, 2024 |
| December 31 | September 30 (following year) | FY ending December 31, 2024 |
| March 31 | December 31 (same year) | FY ending March 31, 2025 |

For deadline detail by entity type and first-year rules, see our [UAE Corporate Tax Filing Deadline](https://einvoicedirect.ae/uae-corporate-tax/uae-corporate-tax-filing-deadline) guide.

## How to plan cash for a single annual payment

Because the UAE asks for one payment per year, finance teams should treat corporate tax like a self-managed instalment plan. You set the schedule internally even though the FTA receives one payment.

### A simple internal instalment method

- Forecast taxable income each quarter using your management accounts.
- Apply the 9% rate to income above AED 375,000.
- Divide the projected annual liability by 12 and set aside that amount each month.
- Hold the reserve in a separate bank account so it is not used for operations.
- Reconcile the reserve against the actual return before the 9-month deadline.

### Worked example: AED 2M taxable income

A trading company has taxable income of AED 2,000,000 for the year ending December 31, 2024.

- First AED 375,000 at 0% = AED 0.
- Remaining AED 1,625,000 at 9% = AED 146,250.
- Total corporate tax due by September 30, 2025: AED 146,250.
- Monthly reserve: AED 146,250 divided by 12 = AED 12,188 per month.

Setting aside this amount monthly avoids a cash shock in September. It also gives the business room to apply for a formal FTA instalment plan if revenue drops mid-year.

## Penalties and interest on missed payments

Late payment of corporate tax triggers administrative penalties under UAE tax procedures law (Federal Decree-Law 17 of 2024). Penalties accrue on the unpaid balance, so even an approved instalment arrangement may carry charges if the FTA has not formally waived them.

### What businesses should avoid

- Filing the return on time but not paying.
- Paying late without contacting the FTA in advance.
- Assuming a VAT refund will offset corporate tax automatically.
- Missing reconciliation between the return and the payment reference.

If you need to correct a filed return or change payment data, read our [Corporate Tax Amendment UAE](https://einvoicedirect.ae/uae-corporate-tax/corporate-tax-amendment-uae) guide. If you genuinely need more time, review the [Corporate Tax Extension UAE](https://einvoicedirect.ae/uae-corporate-tax/corporate-tax-extension-uae) options before the deadline passes.

## How instalment requests are submitted to the FTA

Instalment requests are made through the FTA's EmaraTax portal. The FTA publishes guidance and decision criteria on its official channels.

### Documents usually required

- Tax Registration Number (TRN, the FTA-issued identifier for a registered taxpayer).
- Audited or management financial statements for the relevant period.
- Cash flow forecast covering the proposed instalment period.
- Bank statements for the last 6 to 12 months.
- A written justification explaining why a lump sum payment is not possible.
- The proposed payment schedule with dates and amounts.

### What approval looks like

If approved, the FTA issues a formal payment arrangement with fixed dates. Missing an instalment usually voids the plan and accelerates the balance. You can find the official rules on the [Federal Tax Authority website](https://tax.gov.ae) and the [UAE Ministry of Finance portal](https://mof.gov.ae).

## How corporate tax instalments interact with e-invoicing

The UAE is rolling out mandatory e-invoicing on a Peppol 5-corner DCTCE (Decentralized Continuous Transaction Control and Exchange) model using the PINT AE format. Phase 1 mandatory go-live is January 1, 2027 for businesses with AED 50M+ revenue, with the ASP (accredited service provider) appointment deadline set at October 30, 2026.

Better invoicing data means more accurate taxable income figures, which makes corporate tax forecasting and internal instalment planning more reliable. Clean B2B (business to business) invoice data flowing into your accounting system reduces the risk of underpaying or overpaying corporate tax.

## Common mistakes finance teams make

### Confusing VAT and corporate tax cycles

VAT returns are due within 28 days of the end of each tax period under Federal Decree-Law 8 of 2017. Corporate tax is annual. Some teams accidentally set aside corporate tax in quarterly VAT cycles and lose visibility of the larger annual liability.

### Forgetting small business relief expiry

Small business relief is available for revenue up to AED 3M through 2026. Companies relying on it must plan for the cash impact once relief ends.

### Underestimating fees and advisor costs

Filing, audit, and advisory costs are part of the total cost of compliance. Plan for them alongside the tax itself. See the breakdown in our [Corporate Tax Filing Fees UAE](https://einvoicedirect.ae/uae-corporate-tax/corporate-tax-filing-fees-uae) article and our [How to File Corporate Tax Return UAE](https://einvoicedirect.ae/uae-corporate-tax/how-to-file-corporate-tax-return-uae) walkthrough.

## Quick checklist for managing corporate tax cash flow

- Confirm your financial year end and 9-month payment deadline.
- Estimate annual taxable income each quarter.
- Apply 0% up to AED 375,000 and 9% above.
- Reserve a monthly amount in a separate account.
- Track free zone status and any Qualifying Free Zone Person (QFZP) conditions.
- Keep audit-ready records aligned to the [UAE Corporate Tax](https://einvoicedirect.ae/uae-corporate-tax) rules.
- If cash is tight, contact the FTA before the due date to request an instalment plan.

Ready to align your invoicing and tax data so corporate tax planning is simpler? [Get UAE e-invoicing pricing](https://einvoicedirect.ae/for-businesses#contact) and see how EInvoice Direct helps UAE finance teams keep accurate records all year, with an accredited service provider included at no extra charge.

## Frequently asked questions

### Can I pay UAE corporate tax in instalments?

UAE corporate tax is paid as a single annual amount within 9 months of your financial year end. The Federal Tax Authority can grant instalment arrangements on a case-by-case basis if a business cannot pay in one payment. You apply through the EmaraTax portal with financial statements, a cash flow forecast, and a proposed payment schedule. Approval is not automatic.

### When is UAE corporate tax due?

Corporate tax is due within 9 months of the end of your financial year under Federal Decree-Law 47 of 2022. For a year ending December 31, 2024, the return and payment are due by September 30, 2025. For a year ending March 31, 2025, the deadline is December 31, 2025. The same date applies to both filing and payment.

### Does the UAE require quarterly advance corporate tax payments?

No. The UAE corporate tax regime does not require automatic quarterly advance payments. Companies file and pay annually within 9 months of the financial year end. Many finance teams still set aside money monthly or quarterly internally as a self-managed instalment plan, which makes the final annual payment easier to fund without disrupting operations.

### What happens if I miss a corporate tax payment in the UAE?

Late payment triggers administrative penalties under Federal Decree-Law 17 of 2024 on tax procedures. Penalties accrue on the unpaid balance until cleared. If you cannot pay on time, contact the FTA before the deadline and request a formal instalment plan. Filing the return on time but paying late still attracts late payment penalties on the unpaid amount.

### How do I calculate my UAE corporate tax liability?

Start with accounting profit, then apply adjustments under Federal Decree-Law 47 of 2022 to reach taxable income. Apply 0% to the first AED 375,000 and 9% to income above that. Large multinationals with global revenue of EUR 750M or more pay a 15% Domestic Minimum Top-up Tax from January 2025. Small business relief is available for revenue up to AED 3M through 2026.

### Can free zone companies pay corporate tax in instalments?

Free zone companies follow the same payment timing as mainland businesses, due within 9 months of the financial year end. A Qualifying Free Zone Person (QFZP) that meets all conditions can apply a 0% rate on qualifying income, but non-qualifying income is taxed at 9%. Free zone businesses can also request FTA instalment arrangements on the same case-by-case basis.

### How do I request a corporate tax instalment plan from the FTA?

Submit a request through the EmaraTax portal with your Tax Registration Number, financial statements, a 6 to 12 month cash flow forecast, recent bank statements, and a written justification for why a lump sum is not possible. Include the proposed payment schedule with dates and amounts. The FTA reviews compliance history and ability to pay before approving.


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This content is informational and is not tax, legal, or financial advice.
For UAE e-invoicing pricing, see https://einvoicedirect.ae/for-businesses#contact