Corporate Tax Return Filing in UAE for Pakistani Companies

Corporate Tax Return Filing in UAE

For Pakistani companies, filing a Corporate Tax return is a legal requirement from the Federal Tax Authority (FTA). If you fail to file your tax return, you can get penalties and fines. The process involves sending a report to the tax authority that shows your UAE company's income and expenses.

The Corporate Tax Return is filed by your business for a certain tax period. It shows how much Corporate Tax you owe and have paid. You must file the tax return with the FTA by a specific deadline, following the Corporate Tax Law.

If the FTA asks for any extra information or documents, you must provide them.

The UAE first announced Corporate Tax in January 2022, and it came into effect for financial years starting on or after June 1, 2023. The tax rate is 9%, but any yearly taxable profit under AED 375,000 is taxed at 0%. This is a big benefit for Pakistani SMEs in the UAE.

For Pakistani businesses, here are the key steps for filing a Corporate Tax return in the UAE:

Tax registration

Your company in the UAE needs to get a Tax Registration Number (TRN) from the Federal Tax Authority (FTA). This means sending the required documents through the official EmaraTax portal.

Record keeping

You must keep well-organized records of all your company's financial deals and tax documents, as required by the UAE Corporate Tax laws.

Preparation of tax return

You need to calculate your company's taxable income and prepare the tax return based on your records. It is very important to include any deductions and exemptions that you can claim under UAE Corporate Tax laws.

Filing of tax return

The finished Corporate Tax return must be sent to the FTA online through the EmaraTax portal, on or before the deadline.

Payment of tax

You must pay the full amount of tax that you calculated in your Corporate Tax return by the official due date.

Tax Audit

Remember that the FTA might do a tax audit. If they do, they may ask for more information or documents from your company to check if your Corporate Tax return is correct.

Basic Documents required to file for Corporate Tax

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

Complete financial records for the tax period.
Detailed calculations of how you got your taxable income.
Transfer Pricing documents, if you need them.
Information about all deals between related companies (like with a parent company in Pakistan).
Records showing changes in your company's provisions.
Financial records and plans for any tax changes or reliefs.

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

Yes, it is a must for all businesses, including Pakistani-owned companies in the UAE, to file Corporate Tax returns. If you do not, you will get penalties under the Corporate Tax Law.

Yes, all businesses must file a Corporate Tax return for each tax period, even if they have not made any income.

Yes, Corporate Tax applies to Free Zone companies. Pakistani businesses in Free Zones must file a Corporate Tax return, no matter if they are a 'Qualifying Free Zone Person' or not.

You must file a Corporate Tax Return once for each tax period.

The deadline for filing your company's Corporate Tax return is nine months after the end of your tax period.

You must file the Corporate Tax return online through the EmaraTax portal, which is the official platform of the Federal Tax Authority (FTA).

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