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Corporate Tax Return Filing

Corporate Tax Return Filing is a legal requirement for companies operating in the UAE. Failure to do so can result in penalties and fines. With the announcement of the UAE corporate tax law, companies are now preparing to file their tax returns within the deadlines set by the Federal Tax Authority (FTA).

Corporate Tax was first introduced by the UAE Ministry of Finance in January 2022, announcing implementation starting from June 2023 or by January 2024. The Corporate Tax Law will come into effect on June 1, 2023, with a headline rate of 9%. Annual taxable profits under AED 375,000 will be subject to a 0% rate. The regime incorporates elements of international best practices in taxation.

Every Taxable Person must register for Corporate Tax and obtain a Tax Registration Number. In certain cases, the tax authority may also require Exempt Persons to register for Corporate Tax.

What is Corporate Tax Return Filing in UAE?

Corporate Tax Return Filing in the UAE is the process by which companies report their taxable income, deductions, and tax payable to the Federal Tax Authority (FTA). This involves preparing and submitting a detailed statement of the company’s financial performance over a specific period, in accordance with the UAE Corporate Tax Law. Companies must ensure they comply with the tax regulations, meet deadlines, and accurately calculate their tax liabilities to avoid penalties and fines.

In case any additional information, a document, or a record is requested by the Authority, it should be submitted by the taxpayer to the tax authority.

Do Free Zone Entities Need to File Corporate Tax Returns?

Corporate Tax in UAE is imposed on Free Zone Persons as well. Hence, All Free Zone entities will be required to file a Corporate Tax return, even if they are Qualifying Free Zone persons or not.

Is it Mandatory To File Corporate Tax Returns in UAE?

Yes, it is mandatory to file Corporate Tax returns in the United Arab Emirates (UAE). The Federal Tax Authority (FTA) requires companies operating in the UAE to file tax returns and pay taxes on their taxable income as per UAE tax laws. However, businesses with income less than AED 375,000 will be subject to a 0% tax rate.

The tax laws in the UAE apply to both local and foreign companies operating in the country. Failure to file tax returns or pay taxes can result in penalties and fines.

How often Businesses should file for Corporate Tax Returns in UAE?

UAE businesses are required to file corporate tax returns once per tax period. The corporate tax return is due nine months after the end of the tax period. Additionally, there is no requirement for advance or preliminary corporate tax filings.

Here’s How to file Corporate Tax Returns in the UAE:

You can file Corporate Tax Returns online via the EmaraTax portal. Currently, the FTA pre-approves corporate tax registration for certain entities. If your entity is eligible, you can register for corporate tax on EmaraTax. Haven’t created an account on EmaraTax yet? Here’s a guide to logging in and registering on EmaraTax. EmaraTax has integrated with the UAE Central Bank and UAE PASS to enhance the user experience.

What is the Deadline For Corporate Tax Return Filing in UAE?

Businesses in the UAE are given up to 9 months from the end of their respective tax period to file their tax return and settle Corporate Tax payments with the Federal Tax Authority (FTA). For instance, a company commencing its first tax period on June 1, 2023, would have until February 28, 2025, to meet this deadline. Similarly, a company starting its first tax period on January 1, 2024, would have until September 30, 2025.

This move is based on the UAE’s dedication to ensuring the smooth implementation of Corporate Tax policy. Benefits of filing corporate tax returns include efficient cost and proper control of time, a single tax return for a group, and the ability to combine the amount of group tax paid, wherein certain companies make a taxable profit while others may have a tax loss.

Procedure of Corporate Tax Return Filing in UAE rewrite

  1. Tax audit: In case of a tax audit, the FTA may request additional information or documents to verify the accuracy of the tax return filed.
  2. Record keeping: Maintain proper records of all financial transactions and tax-related documents in accordance with the UAE tax laws.
  3. Preparation of tax return: Calculate taxable income and prepare a tax return based on the records maintained, taking into account tax deductions and exemptions as per the UAE tax laws.
  4. Tax registration: Obtain a tax registration number from the Federal Tax Authority (FTA) by submitting the required documents and information.
  5. Filing of tax return: Submit the tax return to the FTA through their online platform, e-Services, on or before the due date.
  6. Payment of tax: Pay the tax liability as per the tax return filed on or before the due date.

We can assist you in calculating and determining your tax liability for Corporate Tax, as well as guide you through the entire process of filing Corporate Tax returns in the UAE.

Elements of Corporate Tax Return Filing Services in UAE

When filing a Corporate Tax Return, it is essential to include information regarding the company’s profits and expenses. The final outcome determines the amount of tax payable to the government.

Here are the essential documents required for filing Corporate Tax Returns:

The tax experts and professionals at YUGA Accounting ensure the accurate preparation of corporate tax returns, protecting them from the risk of audit, thus ensuring maximum tax claims

Need Help with filing Corporate Returns? Call  YUGA Accounting Dubai & Ajman for queries.