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Corporate Tax Return filing

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Overview of Corporate Tax Return filing

Corporate Tax return filing is a legal requirement of the FTA to taxable persons and failure to file tax returns can result in administrative penalties and fines.  Corporate Tax return filing in the United Arab Emirates is the process of submitting a report to the relevant tax authority that details the income and expenses of a taxable person.

The Corporate Tax Return is filed by the Taxable Person for a specific tax period on the information about Corporate Tax liability and payment. The Tax Return should be filed within a specific period with the FTA with reference to the Corporate Tax Law.

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

Corporate Tax was first introduced in January 2022 by the Ministry of Finance, UAE, thus declaring the implementation in June 2023 or by January 2024. The Corporate Tax Law will go into effect on June 1, 2023, at the rate of 9%. Any annual taxable profits under AED 375,000 are subject to a 0% rate.

 

Procedure of Corporate Tax Return Filing

The following are the procedures in filing a Corporate Tax return in UAE:

  • Tax registration: Companies in UAE need to apply for a tax registration number from the Federal Tax Authority (FTA) by submitting the required documents and information through EmaraTax portal.
  • Record keeping: Maintain proper records of all financial transactions and tax-related documents in accordance with the UAE Corporate Tax laws.
  • Preparation of tax return: Calculate taxable income and prepare a tax return based on the records maintained, taking into account any applicable deductions and exemptions as per the UAE Corporate Tax laws.
  • Filing of tax return: Submitting the Corporate Tax return to the FTA through their online platform, EmaraTax portal, on or before the due date stipulated.
  • Payment of tax: Pay the tax liability as per the Corporate Tax return filed on or before the due date.
  • Tax audit: In case of a tax audit, the Authority may request additional information or documents to verify the accuracy of the Corporate Tax return filed.

Basic Documents required to file for Corporate Tax

When a taxable person file for Corporate Tax return, it should include the following documents:

  • Financial records
  • Taxable income calculations
  • Transfer Pricing documentations
  • Information of transactions between related parties
  • Movement of Provisions
  • Taxable income calculations
  • Financial record and plans for devaluation of taxes

UAE Corporate Tax Filing & Deadlines

Corporate Tax filing deadlines for businesses with financial year ends of 31 March, 30 June and 31 December:

Financial year-end 30 June

First Tax Period  1 July 2023 – 30 June 2024

Financial year-end 31 December

1 January 2024 – 31 December 2024

Financial year-end 31 March

1 April 2024 – 31 March 2025

Frequently Asked Questions

Yes it is mandatory for Taxable Persons to file Corporate Tax returns in UAE. Failure to file tax returns will attract administrative penalties as per the Corporate Tax Law.

All taxable persons are required to file Corporate Tax return irrespective if there is no income generated.

Corporate Tax is also imposed on Free Zone person and they are required to file for a Corporate Tax return even if they are falling under Qualifying Free Zone person or not.

Corporate Tax Return is to be filed only once per tax period

The Corporate Tax return filing is due nine months from the end of the relevant tax period.

Filing of Corporate Tax return is done in EmaraTax portal which is regulated by the FTA.

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