Exciting update, for all businesses in the UAE that were established in June 2023. Now you have a deadline for your UAE Corporate Tax Filing until December 31, 2024, as per the announcement, from the tax office. Instead of rushing to get it done by September 30, 2024, you now have until December 31, 2024. That’s an extra three months to get everything sorted.
This corporate tax filing deadline extension only affects companies that got their business license in June 2023. If that is you, you can breathe a little easier now. Many of these new businesses were worried about meeting the September deadline, so this extra time is a big help.
For most other UAE companies, nothing has changed. If your business runs from January to December, you will still file your first Corporate Tax Filing Deadline in September 2025 for your 2024 results.
So, if you started your business in June 2023, you have more time. Instead of filing in September, you can now take your time and file by the end of the year. It’s a nice break for these new businesses as they navigate their first round of UAE Corporate Tax.
The New Deadline for Corporate Tax Filing 2024
- If you started your company on May 1, 2023, your first tax year will be the same as the regular calendar year from January 1, 2024, to December 31, 2024. This means you will have plenty of time to get your business up and running before you need to worry about UAE Corporate Tax Filing. When it comes time to file a corporate tax return, you will do it in September 2025. This gives you about nine months after your tax year ends to get your paperwork in order.
- Now, if you started your business on June 1, 2023, things are a bit different for you. Your first tax period is shorter; it only covers your start date from June 1, 2023, to the end of that year, December 31, 2023. Originally, you were supposed to file your taxes by September 30, 2024. But the government has given you an extension. Your new UAE corporate tax filing 2024 deadline is December 31, 2024. That’s an extra three months to get everything sorted out. This extension is really helpful for new businesses that might need more time to figure out all the corporate tax filing rules.
- If you started on July 1, 2023, your first tax period is longer than a year. It starts from your first day of business, July 1, 2023, to December 31, 2024. That is about 18 months. Because your tax period is longer, you get more time to file. Your deadline is September 30, 2025. This gives you nine months after your tax period ends to prepare your return.
Corporate Tax Return Filing in UAE
Corporate tax return filing in UAE is the process of sending a report to the relevant tax authority that outlines a company’s income and expenses. This return must be submitted by the business responsible for paying taxes for a specific period, detailing how much tax is owed and the payment made. Companies need to file their returns within a set timeframe according to the UAE Corporate Tax Law.
If the tax authority requests any extra information or documents, the company must provide them promptly.
Is Corporate Tax Return Filing Mandatory in UAE?
Yes, companies in the UAE must file corporate tax returns. The Federal Tax Authority (FTA) requires all businesses operating in the UAE to submit these returns and pay taxes on their taxable income, as outlined by UAE tax laws. Businesses with an income of less than AED 375,000 are subject to a 0% tax rate.
These corporate tax laws apply to both local & foreign companies. If a company fails to file its corporate tax return filing or pay its taxes, it may face penalties and fines. Even if a UAE business has no income, it is still required to file a corporate tax return. All taxpayers must submit a return, regardless of their income level or company status.
Penalties for Missing Deadlines for Corporate Tax Return Filing
If businesses do not file their corporate tax returns on time, they could face fines or penalties. These can vary based on how late the filing is and how much tax is owed. Here is a quick overview of some fines for missing UAE corporate tax filing deadlines in the UAE:
- If the Legal Representative doesn’t file a tax return on time: You have to pay the penalties of AED 500 monthly for the first 12 months and AED 1,000 from the 13th month.
- If the Registrant fails to submit a tax return by the deadline: You have to pay the penalties of AED 500 monthly for the first 12 months and AED 1,000 from the 13th month.
- If there is a late submission or no submission of a declaration to the Authority: You have to pay the penalties of AED 500 monthly for the first 12 months and AED 1,000 from the 13th month.
Steps to Check Corporate Tax Fine on Federal Tax Authority (FTA) Portal
If you want to check whether your business has any corporate tax fines in the UAE, follow these steps:
Before you start, make sure you have the following credentials:
- Make sure you have your company’s Tax Registration Number (TRN)
- Your login details for the Federal Tax Authority (FTA) portal
Step 1: Visit the FTA Portal
- Go to the official FTA website.
Step 2: Log In to Your Account
- Click on the “E-Services” button on the website.
- Enter your FTA username and password to log in.
Step 3: Find the Penalties Section
- Access Your Dashboard: After logging in, you will see your dashboard.
- Locate the ‘My Penalties’ section: Look for the ‘My Penalties’ or ‘Fines’ section on your dashboard. This might be in the main menu or as a separate tab.
Step 4: Check Penalty DetailsÂ
Click on ‘My Penalties’ to see any fines your company may have. This section will show:
- Amount of fine
- Reason for fine
- The due date for payment
Contact Intellect Chartered Accountants for Corporate Tax Return Filing
Intellect Chartered Accountants can help you understand any fines you might have and provide advice on how to resolve the issue. If you think a fine is unfair, we can also assist you with filing an appeal. We provide the best services for UAE Corporate Tax Filing and navigating the UAE corporate tax filing deadlines 2024.
You can contact Intellect Chartered Accountants for all your UAE Corporate Tax 2024 needs.
Website: https://intellectca.ae/
Phone/WhatsApp: +971 42229911
Email: info@intellectca.ae
Address: 807, Clover Bay Tower, Business Bay, Dubai, UAE
