Every restaurant, café or cloud kitchen run through a UAE company must register for Corporate Tax and file a return, even at a loss. Tax is 0% on the first AED 375,000 of taxable income and 9% above it, and revenue up to AED 3M can elect Small Business Relief. Returns for December 2025 year ends are due by 30 September 2026.
- You run a restaurant, café, bakery or cloud kitchen through a UAE mainland or free zone company
- You sell through Talabat, Deliveroo, Careem or Noon Food as well as dine-in or takeaway
- You own a food outlet as a sole establishment and turnover passed AED 1M in a calendar year
- You operate several outlets, under one licence or through separate companies
- Your financial year ended 31 December 2025 and the return is not yet filed
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Do restaurants and cafés have to register and file for Corporate Tax?
Yes. Every restaurant or café owned by a UAE company, mainland or free zone, must register for Corporate Tax and file a return every year, whatever its revenue and even if it made a loss. Only an outlet owned directly by an individual stays outside Corporate Tax until its business turnover passes AED 1M in a calendar year. VAT is a separate test based on sales.
| How your outlet is set up | Corporate Tax | VAT | Reliefs to consider |
|---|---|---|---|
| Mainland LLC running one or more restaurants | Register and file every year | Mandatory once taxable supplies pass AED 375,000 in 12 months | 0% band, Small Business Relief if revenue up to AED 3M |
| Cloud kitchen in a free zone selling to the public through delivery apps | Register and file | Same AED 375,000 test | QFZP 0% unlikely: sales to individuals are generally non-qualifying income |
| Sole establishment café owned by an individual, turnover over AED 1M | Register by 31 March of the next year, file by 30 September | Same AED 375,000 test | 0% band, Small Business Relief |
| Group with a separate company for each outlet | Each company registers and files its own return | Each company tested, or a VAT group if eligible | Small Business Relief tested per company |
The free zone edge case matters for food businesses. A Qualifying Free Zone Person pays 0% only on qualifying income, needs audited accounts and must keep non-qualifying revenue within the lower of AED 5M or 5% of revenue. Meals sold to individuals are generally non-qualifying and Small Business Relief is not available to a Qualifying Free Zone Person, so most free zone cloud kitchens should plan for 9% above the AED 375,000 band.
How do you reconcile POS sales, bank deposits and delivery app payouts?
Your taxable revenue is the gross value of every sale, so the POS, the bank and each delivery app must agree on the same monthly total before the return is prepared. The trouble is that none of them shows gross sales in the same place: card sales arrive net of merchant fees, and Talabat, Deliveroo, Careem and Noon Food pay out after deducting commission, delivery charges, promotions and refunds.
Why booking delivery apps net is a tax problem
If only the payout is recorded, revenue is understated even though profit looks about the same. That matters because Small Business Relief is tested on revenue: a kitchen with AED 3.1M of gross sales that books AED 2.9M net can wrongly elect the relief, and the FTA can then assess tax on the difference. Booking commission as a cost also leaves an invoice trail that supports the deduction.
Take VAT out before you count revenue
POS totals usually include 5% VAT, which you collect for the FTA rather than earn. Revenue for Corporate Tax should be net of VAT, and the output VAT on your VAT 201 returns should tie to the same sales figures. Our guide to VAT return filing for restaurants covers the VAT side, and UAE food and beverage VAT explains how menu items are treated.
Cash takings: records that survive an FTA review
A cash-heavy outlet has to prove that what was banked is what was sold. Keep the daily Z report, a signed cash-up sheet showing float, cash sales, tips and payouts, and matching deposit slips. Record card tips collected for staff as money owed to them, not revenue. Petty cash spent on market produce needs a voucher and receipt (see our petty cash controls guide). Missing records cost AED 10,000, or AED 20,000 for a repeat within 24 months.
| Sales channel | What the report shows | What reaches the bank | How to book it |
|---|---|---|---|
| Dine-in and takeaway, card | POS Z report, including VAT | Batch settlement less merchant fees, a day or two later | Gross sale as revenue, merchant fees as an expense |
| Dine-in and takeaway, cash | POS Z report and cash-up sheet | Deposit slips, often grouped over several days | Gross sale as revenue, match each deposit to the cash-up |
| Delivery apps | Partner portal order value and a settlement statement | Weekly or periodic payout net of commission, promotions and refunds | Gross order value as revenue, commission and app charges as expenses |
| Catering and corporate orders | Tax invoice | Bank transfer on credit terms | Revenue when delivered, receivable until paid |
Which restaurant costs are deductible: food, wastage, staff meals and fit-out?
Costs incurred wholly and exclusively for the restaurant are deductible, which covers food cost, packaging, recorded wastage, staff meals and depreciation on fit-out. The FTA will look for evidence that each cost belongs to the business and not the owner’s household; see deductible expenses under UAE Corporate Tax.
Fit-out capex: depreciate it, do not expense it
Fit-out, extraction hoods, cold rooms and the kitchen line are capital assets. They go on the fixed asset register and are depreciated over their useful life, often no longer than the lease for leasehold improvements. Expensing an AED 600,000 fit-out in the opening year creates an artificial loss; see fixed assets accounting and using Corporate Tax losses.
Owner drawings are not wages
When the owner takes cash from the till or pays personal bills from the restaurant account, those amounts are drawings or a director loan, not staff costs. Payments to owners, directors and their relatives must be at arm’s length and disclosed with the return, so a spouse on payroll needs a real role and a market salary. Read more on the director loan account.
| Cost | Corporate Tax treatment | Evidence to keep |
|---|---|---|
| Food and beverage purchases | Deductible through cost of sales, adjusted for opening and closing stock | Supplier tax invoices, month-end stock count |
| Wastage and spoilage | Deductible when it is a genuine business loss | Daily wastage log signed by the kitchen lead |
| Staff meals | Deductible as an employee cost | Staff meal policy and a count of covers consumed |
| Owner and family meals | Not deductible | Record as owner drawings, not food cost |
| Kitchen equipment and fit-out | Capitalise and deduct as depreciation | Contractor invoices, fixed asset register |
| Rent paid to a company or person connected to the owner | Deductible at an arm’s length amount | Lease, market comparison, disclosure with the return |
Several outlets under one licence or a company per branch: what changes?
Branches under one licence form one taxable person with one Corporate Tax return, while each separate company registers and files on its own. The choice changes how Small Business Relief is tested, which transactions count as connected-person dealings and how many returns you file each September.
| Point | One company, several branches | Separate company per outlet |
|---|---|---|
| Returns | One return covering all outlets | One return per company, including dormant ones |
| Small Business Relief test | Combined revenue of all branches against AED 3M | Tested per company on that company’s own revenue |
| Central kitchen supplying outlets | Internal transfer, no separate pricing needed | Charges between companies must be at arm’s length and disclosed |
| Losses at a new outlet | Offset against profits of other branches in the same return | Stay in that company unless the group forms a Tax Group |
| Tax Group option | Not relevant | Possible if a parent owns at least 95% and all members share a financial year |
Groups that recharge management fees, shared chefs or central purchasing between companies should keep a written basis for each charge; see our transfer pricing guide and the UAE Corporate Tax group guide.
How to file a restaurant's Corporate Tax return on EmaraTax
These steps assume a 31 December 2025 year end and a return due by 30 September 2026.
Pull every sales source for the year
Export POS Z reports by month, delivery app settlement statements for each platform, card acquirer statements and catering invoices. Strip VAT out of the POS totals.
Reconcile sales to the bank
Match card settlements, cash deposits and app payouts to the bank statements month by month. Gross up app payouts to order value and post commission, delivery charges and refunds as expenses.
Count stock and post food cost
Use the closing stock count at 31 December 2025, supplier invoices and wastage logs to fix cost of sales. Move owner and family meals to drawings.
Capitalise fit-out and post depreciation
Add new kitchen equipment and fit-out to the fixed asset register and charge depreciation for the year instead of expensing the invoices.
Close the accounts and compute taxable income
Produce the profit and loss account and balance sheet, then remove personal costs and any other non-deductible items to reach taxable income.
Choose the relief and list connected-person payments
Compare Small Business Relief (revenue up to AED 3M) with the 0% band on the first AED 375,000, and list rent, salaries and recharges involving owners, relatives or related companies for disclosure.
Submit on EmaraTax and pay
Log in to EmaraTax, open the Corporate Tax return for the period, enter the figures from the closed accounts, submit and pay any tax by 30 September 2026. Keep the acknowledgement with the year’s records for 7 years.
What records should a restaurant keep ready before filing?
Keep the operational reports that let someone rebuild each month’s sales and costs, not just the ledger, and keep them for 7 years.
- Daily POS Z reports and end-of-day cash-up sheets for every outlet
- Delivery app settlement statements and commission tax invoices for each platform
- Bank statements for every account, with deposit slips for cash
- Supplier tax invoices for food, beverages, packaging and cleaning supplies
- Month-end and year-end stock counts, and daily wastage logs
- Payroll, WPS files, staff accommodation and staff meal records
- Fixed asset register with fit-out and equipment invoices
- Tips register showing amounts collected and paid out to staff
- Schedule of payments to owners, directors, relatives and related companies
- VAT 201 returns for the year, to tie sales to Corporate Tax revenue
Which tax deadlines should restaurant owners diary for 2026 and 2027?
The date that matters most right now is 30 September 2026, when Corporate Tax returns and payments for 31 December 2025 year ends are due. VAT returns keep running on their own quarterly cycle. The 9-month Corporate Tax deadline guide explains how the date is worked out for other year ends.
| Obligation | Deadline | Who it affects |
|---|---|---|
| Corporate Tax return and payment, year ending 31 December 2025 | 30 September 2026 | Every restaurant company with a December year end |
| VAT 201 return and payment, quarter ending 30 September 2026 | 28 October 2026 | VAT-registered outlets on that quarter |
| Appoint an e-invoicing Accredited Service Provider | 31 March 2027 | Businesses under AED 50M revenue (B2C sales are excluded for now, B2B catering is not) |
| E-invoicing go-live | 1 July 2027 | Businesses under AED 50M revenue |
| Small Business Relief availability | Tax periods ending on or before 31 December 2029 | Resident businesses with revenue up to AED 3M |
What penalties can a restaurant face for Corporate Tax in 2026?
Corporate Tax penalties come from Cabinet Decision 75/2023 as amended, and the three most common for restaurants are late filing, late payment and poor records. The complete Corporate Tax penalty guide lists the rest.
| Violation | Penalty | Typical restaurant trigger |
|---|---|---|
| Late registration | AED 10,000, waived if the first return is filed within 7 months of the end of the first tax period | Outlet opened under a new company and never registered |
| Late return | AED 500 a month for 12 months, then AED 1,000 a month | Owner assumed a loss-making year needs no return |
| Late payment | 14% a year, calculated monthly | Return filed, tax paid after 30 September |
| Incorrect return | From AED 500, plus 1% a month on any tax difference | Delivery app sales booked net, fit-out expensed |
| Records not kept | AED 10,000, or AED 20,000 for a repeat within 24 months | No Z reports or cash-up sheets for cash sales |
| Late deregistration | AED 1,000 a month, up to AED 10,000 | Outlet company closed without deregistering |
How it stacks for a café. An illustrative café company that files six months after 30 September 2026 and cannot produce cash-up records when asked could face AED 3,000 in late filing penalties plus a AED 10,000 records penalty: AED 13,000 before any late payment, whether or not it made a profit.
Worried a penalty is already running on your restaurant?
Send us your EmaraTax status and last year's POS and delivery app totals, and we will tell you what is overdue and what it is costing each month.
7 Corporate Tax mistakes restaurant and café owners make
These are the errors we find most often when we take over a restaurant’s books, and each one leads to a penalty or a tax assessment.
1. Leaving cash sales out of the books
Cash never rung up or never banked makes revenue incomplete. If purchases and covers point to higher sales, the return is incorrect, and missing Z reports add the AED 10,000 records penalty.
2. Recording delivery app income net of commission
Booking only the payout understates revenue, can push a kitchen under the AED 3M Small Business Relief limit on paper, and leaves no invoice trail for the commission deduction.
3. Mixing owner drawings with wages
Personal withdrawals posted as salaries inflate deductions, and connected-person payments must be at arm’s length and disclosed.
4. Expensing the fit-out in year one
An AED 600,000 kitchen written off at once distorts several years of returns. Depreciate it over its useful life.
5. Skipping the return in a loss year
Opening years often make a loss, but the return is still due and the late filing penalty still runs.
6. Believing Small Business Relief has ended
Ministerial Decision 131 (August 2026) extended the relief to tax periods ending on or before 31 December 2029. It still has to be elected and a return still has to be filed; see our Small Business Relief guide.
7. Filing one return for several outlet companies
Each company is a separate taxable person, including the dormant one that holds a closed branch. A missing return for any of them accrues its own penalty; our nil Corporate Tax return guide covers the inactive ones.
How can a restaurant avoid Corporate Tax penalties all year?
Build tax into the kitchen’s existing rhythm of daily cash-ups and monthly stock counts, so the return is a formality by June.
- Daily: print the Z report, complete a signed cash-up and log wastage
- Weekly: bank cash takings and match each deposit to its cash-up sheets
- Monthly: reconcile POS, card settlements and every delivery app statement to the bank, booking app sales gross
- Monthly: count stock, post food cost and keep supplier invoices for 7 years
- Monthly: separate owner drawings from payroll and log connected-person payments
- Quarterly: tie POS sales to the VAT 201 return and check revenue against the AED 3M relief limit
- On any new outlet: add fit-out to the asset register and confirm which company it sits in
- Annually, by June: close the year, choose Small Business Relief or the 0% band, and have the return reviewed before 30 September
If your books are behind now, our restaurant bookkeeping guide sets out the monthly close in detail.
Missed the filing date or received an FTA letter about your restaurant?
File the overdue return straight away, because the late filing penalty adds AED 500 a month for the first year and AED 1,000 a month after that, then pay the tax to stop the 14% a year late payment charge. If the year’s books are incomplete, rebuild them from POS, bank and app records first; our catch-up bookkeeping guide shows the order of work.
Once compliant, you can ask the FTA to reconsider a penalty within 40 business days of its decision and escalate a rejection to the Tax Disputes Resolution Committee. If an earlier return was wrong, for example because app sales were booked net, correct it promptly to limit the monthly charge on the tax difference. See our guides to a missed Corporate Tax deadline and an FTA penalty reconsideration request.
Got an FTA notice or missed the deadline?
Share the notice and its decision date so your restaurant does not lose the 40 business day reconsideration window.
Worked example: Small Business Relief vs the 9% rate for a Dubai café
Consider an illustrative Dubai café with a cloud kitchen, AED 2.4M of revenue for the year ended 31 December 2025 (delivery app sales booked gross) and accounting profit of AED 520,000 after depreciating its fit-out. Revenue is under AED 3M, so it can choose between two routes.
| Line | Option A: elect Small Business Relief | Option B: standard rules |
|---|---|---|
| Revenue | AED 2,400,000 | AED 2,400,000 |
| Accounting profit | AED 520,000 | AED 520,000 |
| Taxable income | Treated as nil under the relief | AED 520,000 |
| Taxed at 0% | Not applicable | AED 375,000 |
| Taxed at 9% | AED 0 | AED 145,000 |
| Corporate Tax payable | AED 0 | 9% x 145,000 = AED 13,050 |
| Return still required by 30 September 2026 | Yes | Yes |
| Late filing penalty if filed 4 months late | AED 2,000 | AED 2,000 |
| Late payment if tax paid 4 months late (approx.) | AED 0 | About AED 609 (13,050 x 14% ÷ 12 x 4) |
The relief saves AED 13,050 here but not the AED 2,000 late filing penalty, because the election only works through a filed return. Revenue must stay within AED 3M in the relevant and prior periods, and a loss-making opening year can be worth more under standard rules because of how losses carry forward. Compare both routes before electing, or try the Corporate Tax estimator.
Should a restaurant file its own Corporate Tax return or use an accountant?
A single café with a clean POS, one delivery app and reconciled books can prepare its own return; multi-outlet groups, cash-heavy outlets and anyone near the AED 3M relief limit usually benefit from an accountant. Weigh the fee against the penalties and assessments that come from getting revenue or relief wrong.
| Approach | What you pay | Owner time | Where it goes wrong | Best for |
|---|---|---|---|---|
| Owner files on EmaraTax | No fee | High: reconciling apps, stock and cash yourself | Net app revenue, expensed fit-out, wrong relief election | One outlet, card-heavy, books already closed |
| Freelance bookkeeper or accountant | Typical market range varies with outlets and volume | Medium | Handles the ledger but may not review relief choices or connected-person disclosures | Small cafés with simple sales channels |
| Accounting firm (Paci) | Bookkeeping from AED 599 a month, Corporate Tax filing on a fixed quote within 24 hours | Low: you send reports, we reconcile and file | Least likely: reviewed reconciliation and disclosures | Multi-outlet groups, cloud kitchens on several apps, cash-heavy outlets |
Pricing is covered in how much Corporate Tax filing costs in the UAE, and grocery operators with similar cash and stock issues can read our Corporate Tax guide for supermarkets. To hand the return over, our Corporate Tax filing service starts with a free 15-minute review.
What restaurant and café owners actually ask us about Corporate Tax
With 9% Corporate Tax, will I have to raise menu prices or cut food quality to protect margins?
Corporate Tax is charged on taxable profit, not on sales, so the rate itself does not add to menu prices. The first AED 375,000 of taxable income is taxed at 0% and only the part above it at 9%. A restaurant whose taxable profit stays under AED 375,000 pays no Corporate Tax, though it must still register and file.
My company was set up in September 2023, I registered in 2025 and got the AED 10,000 late registration penalty. Can it be waived?
The FTA waives the AED 10,000 if your first Corporate Tax return is filed within 7 months of the end of your first tax period. If that window has passed, file any outstanding return first, then request reconsideration within 40 business days of the FTA decision, explaining the delay with evidence. A rejected request can go to the Tax Disputes Resolution Committee.
We made no profit this year. Do we still file by 30 September, and do payments to shareholders and related businesses need special treatment?
Yes, you still file: every company must file even with a loss or zero revenue, within 9 months of year end, so 30 September 2026 for a 31 December 2025 year end. Payments to owners, directors, their relatives and related businesses must be at arm’s length and disclosed with the return. If any tax is due, paying late costs 14% a year, calculated monthly.
I have a few companies with Corporate Tax numbers. One has no transactions and two earn about AED 40,000 to AED 50,000 a year. Does each need its own return?
Yes. Each company files its own return, including the one with no transactions, because every UAE company must file even with zero revenue. At that size taxable income sits inside the 0% band, and Small Business Relief (revenue up to AED 3M) can also be elected. Each missing return starts its own AED 500 monthly penalty.
Is the Corporate Tax registration deadline different from the filing deadline, and what happens if I miss registration?
They are separate. Late registration is a flat AED 10,000 penalty, waived if the first return is filed within 7 months of the end of the first tax period, while the return itself is due 9 months after year end. Registration deadlines depend on when and how the company was licensed, so check the date shown for your company on EmaraTax before assuming you are on time.
As a new restaurant owner, what records and decisions should I get right from day one?
Set up proper books from opening day: daily Z reports, cash-ups, app settlements, supplier invoices and a fixed asset register for the fit-out, all kept for 7 years. Missing records cost AED 10,000, or AED 20,000 for a repeat. Also track every payment to owners, directors and relatives, which must be at arm’s length and disclosed with the return.
Frequently asked questions
How much Corporate Tax does a restaurant pay in the UAE?+
A restaurant company pays 0% on the first AED 375,000 of taxable income and 9% on the amount above it. A restaurant with AED 900,000 of taxable income pays 9% x 525,000 = AED 47,250. If revenue is AED 3M or less it can elect Small Business Relief and pay AED 0, but it must still file.
Do cloud kitchens pay Corporate Tax in the UAE?+
Yes. A cloud kitchen run through a UAE company registers and files like any restaurant, with the same 0% band and 9% rate. In a free zone, meals sold to individuals through delivery apps are generally non-qualifying income, so the 0% Qualifying Free Zone Person rate is unlikely to apply.
Can a café or restaurant claim Small Business Relief in 2026?+
Yes, if it is a resident business with revenue up to AED 3M and is not a Qualifying Free Zone Person. Ministerial Decision 131 (August 2026) extended the relief to tax periods ending on or before 31 December 2029. It is elective, so the café still registers and files a return to claim it. Our full Small Business Relief guide covers the conditions.
Are Talabat, Deliveroo and Careem commissions deductible for Corporate Tax?+
Yes, delivery app commission, delivery charges and marketing fees are business costs. To claim them properly, record the full order value as revenue and the commission as an expense, supported by each platform’s settlement statements and invoices, rather than booking only the net payout.
Is the VAT on customer bills part of restaurant revenue for Corporate Tax?+
No. The 5% VAT included in POS totals is collected on behalf of the FTA and paid over through your VAT 201 return, so revenue for Corporate Tax is measured net of VAT. Tie the two together each quarter; the hospitality and tourism VAT guide explains the VAT treatment.
Can I deduct my restaurant fit-out cost in the year I pay for it?+
Not in one go. Fit-out, kitchen equipment and furniture are capital assets, so the cost is deducted gradually through depreciation over their useful life. Expensing it all at once overstates the first year’s costs.
What is the Corporate Tax return deadline for a restaurant in Dubai?+
The return and any tax are due 9 months after the financial year end. For a restaurant with a 31 December 2025 year end that is 30 September 2026. Late filing costs AED 500 a month for the first 12 months. If you are already past the date, our missed deadline recovery plan shows what to do first.
Get your restaurant's Corporate Tax return reviewed for free
In a free 15-minute review, a qualified accountant checks how your POS, cash and delivery app revenue is booked, whether Small Business Relief fits, and what must be ready for 30 September 2026. You get a fixed quote for the return within 24 hours.
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- FTA: Small Business Relief Corporate Tax Guide (CTGSBR1)
- Ministry of Finance: Decision on Small Business Relief
- FTA: Waiver of Penalties
- FTA: Registration for VAT
- UAE Legislation: Cabinet Resolution 116 of 2022
Checked against these sources on 15 September 2026. This guide is general information for UAE businesses, not advice on your specific facts.