Corporate Tax Return Filing In UAE
Corporate tax return filing is a compulsory requirement for businesses operating in the UAE. Otherwise, taxpayers violating tax laws receive penalties for late, incorrect, or missing filings. and businesses. With the new corporate tax law now in place, the focus has shifted to the invocation of the tax returns deadline set by the Federal Tax Authority.
All taxable persons must register for Corporate Tax and must obtain a Tax Registration Number. Even some exempt entities may also be advised by the tax authorities to register.
In this guide, we will detail the procedure for Corporate Tax filing in UAE including the filing process in response to the new laws coming into force.
Overview of Corporate Tax Return Filing in UAE
In the UAE, filing a corporate tax return includes a comprehensive report of a company’s income, expenses, and tax obligations calculated for that particular tax year, which is submitted to the Federal Tax Authority. All taxable persons must submit this document before the timelines set out in the UAE Corporate Tax Law.
All such additional documents and records or information, if required by the tax authority, must be provided by the taxpayer promptly to comply with the requirements.
Is Corporate Tax Filing in UAE Compulsory?
Yes, the filing of corporate tax returns is compulsory for all taxable persons in the UAE. As per the guidelines of the Federal Tax Authority (FTA), any business operating within the UAE is expected to file a tax return and pay corporate tax on the taxable income earned by the business.
One important thing is to always note that tax laws in the UAE apply to both residents and foreigners who do business in the UAE. Non-compliance such as incorrect filings, failure to file tax returns, or pay taxes on time shall result in fines and penalties.
Do UAE Businesses Without Income File Corporate Tax Returns?
Yes, all registered entities have to file a corporate tax return and this obligation is not dependent on whether there is income generated or not. If the taxable profit falls below the set threshold of 375,000, one must file a nil return.
Is it Mandatory for Free Zone Entities to Submit Corporate Tax Returns?
Yes, free zone entities operating within the UAE are obliged to file corporate tax returns whether or not they fall under the category of Qualifying Free Zone Persons. The Corporate Tax (CT) regime of the United Arab Emirates (UAE) provides that corporate tax return filings are submitted by all Free Zone businesses, although such businesses enjoy a 0% tax rate on qualifying income.
Duration to file corporate tax filing in UAE
All businesses operating in the UAE should, on an annual basis, submit a corporate tax return. Such a return is required once every tax accounting period. The period within which a CT return should be duly filed is nine months after the end of the financial year. It is important to note that there are no advance or interim corporate tax filings required, which helps in ease of compliance for the companies or concerned taxable persons.
UAE Corporate Tax Return Submission Deadline
Within 9 months from the end of the tax period, all businesses in the UAE must submit their Corporate Tax returns and payments to the Federal Tax Authority (FTA). For instance, in the case where a business commences its first tax period on June 1, 2023, all submissions must be made by February 28, 2025. On the other hand, if a business decides to use a tax period that commences on January 1, 2024, the date for filing such returns would be extended to September 30, 2025.
There are advantages of filing returns on time, which include managing costs more efficiently, managing time, one tax return for tax groups, and offsetting the taxable profits against the tax losses within the group.
Documents Required for Corporate Tax Return Filing in UAE
In the case of tax returns filed by businesses in the UAE, certain documents should be attached to ensure proper computations of tax and adherence to tax laws; this is because they assist the Federal Tax Authority (FTA) in determining the taxable income and the corporate tax liability of the company. The corporate tax filing process includes a list of important supporting documents that are needed and shall be provided by the business entity.
- Financial Records: Verification of revenue and costs incurred.
- Taxable Income Calculations: detailed adjustments made to financial statement profit.
- Depreciation Records: Details of depreciation claimed for tax purposes.
- Transfer Pricing Records: Justification for any services rendered to group companies.
- Related Party Transactions: Disclosure of business dealings with related parties.
- Provisions Movement: Information about reserves for possible future cash outflows.
Steps to File Corporate Tax Return Filing in UAE
The procedure of filing corporate tax returns in the UAE contains a few basic mechanisms which are as follows:
- Tax Registration: Our team handles the application process via the Emaratax Portal and the client receives a confirmation mail and the Corporate Tax Registration Certificate.
- Preparation of Tax Return: We help clients to accurately assess their taxable income and allowances including deductions and exemptions provided under the UAE laws of taxation.
- Filing of Tax Return: Prepare the tax return and file it through the FTA e-Services portal within the specified period.
- Payment: Settle the calculated tax liability within the time limits provided in the respective time frame in return filing.
- Tax Audit: In the case of a tax audit, the FTA may pursue additional documentation or other information to validate the figures reported in the tax return.
We are here to help you in computing your corporate tax dues filing your corporate tax return in the United Arab Emirates and ensuring full compliance.
Why partner with Al Mushthary for Corporate tax return filing?
Partnering with Al Mushthary for Corporate tax return filing services in UAE, you can rest assured that all tax laws and regulations are adhered to. With our team of seasoned tax consultants, the processes of corporate tax registration, filing, and compliance are no longer challenging tasks.
We handle everything from the preparation of the document, tax liability assessment, filing of the returns, and following up with refunds if any arise, and other services to meet the demand of the business. This will help you reduce the tax workload, handle penalties in the right manner, and even finish the tax returns before the deadlines are approached and done correctly.
Contact Al Mushthary today and schedule a free appointment: take advantage of our world-class expertise in all tax-related matters!
