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A Guide to Filing, Documentation, and Other Important Requirements for UAE Corporate Tax

With the government’s announcement of the Corporate Tax, the landscape of tax compliance in the UAE is poised to undergo a paradigm transformation. Businesses have been obliged to evaluate their eligibility and compliance needs due to the UAE corporation tax, which is anticipated to go into effect on June 1st, 2023. Despite the fact that the law has not yet been made public, the Ministry of Finance has published a consultation document outlining the main conditions companies will need to satisfy once the corporation tax regime is in place.

The firms will have to complete a number of administrative duties, such as record keeping, registration, filing tax returns, deregistration, payments, etc., just like with any other tax. According to the rules and guidelines that the Ministry will release, the UAE Federal Tax Authority (FTA) is supposed to manage and enforce the business tax. Businesses in the UAE can benefit from the assistance of tax agents to get ready for corporate tax compliance requirements.

The following is a helpful guide for companies to overcome regulations including corporate tax filing, documentation requirements, and other administrative needs:

UAE Corporate Tax Registration

Businesses that are subject to corporate taxation in the UAE must register with the FTA and get a tax identification number within the timeframe specified by the regulatory body. If an eligible entity neglects to complete voluntary corporate tax registration in the UAE, the FTA has the authority to register it.

Requirements for Record-Keeping

By keeping financial and other documents that support the information provided in the corporate tax return, businesses can assure compliance with corporate tax laws in the UAE. Additionally, they ought to provide these papers to the Federal Tax Authority (FTA). The FTA will need access to the documents in order to determine the status of entities exempt from the UAE corporate tax.

Audited Financial Statements

Relevant company rules and regulations will continue to dictate whether or not businesses must have their financial statements audited by qualified audit firms in the UAE. To take advantage of the UAE’s corporation tax rate of 0%, free zone enterprises must have their financial statements audited. To learn more about this obligation, speak with tax consultants in the UAE.

Deregistration of UAE Corporate Tax

It could happen that a company ceases to be subject to the UAE corporate tax framework for many reasons, such as cessation or liquidation. The company should submit an application for corporation tax deregistration in the UAE in such a circumstance. Within three months of the date of discontinuation, the FTA must receive the application for corporate tax deregistration.

If the FTA is satisfied that the entity has submitted corporate tax returns and paid all of its corporation tax liabilities and penalties (if any) due for all periods up to and including the date of cessation, it will grant the request for UAE corporate tax deregistration. The FTA will deregister a company based on the information available if it fails to submit an application for corporate tax deregistration by the deadline or complies with the payment and filing requirements. Businesses can apply for company tax deregistration with the assistance of tax consultants in the UAE.

Filing of UAE Corporate Tax Return

For each tax period, businesses will only need to prepare and submit one UAE corporate tax return, together with any necessary supporting schedules. In the UAE, companies are not required to submit a provisional corporation tax return or pay corporate tax in advance. The government will benefit from these relaxations by minimizing the administrative costs borne by taxpayers.

Within nine months of the conclusion of the applicable Tax Period, Entities must file their tax return and the appropriate supporting schedules to the FTA. To learn more about this topic, speak with tax advisors in the UAE.

Corporate Tax Refunds & Payments

Within nine months of the conclusion of the applicable Tax Period, taxpayers who wish to settle their corporate tax debt for that Tax Period must do so. If a taxpayer can show that a CT refund may be due, they may submit an application for a tax refund with the FTA. To clear up any confusion regarding company tax payments and refunds, speak with tax advisors in the UAE.

Assessments of Corporate Taxes

The UAE’s corporation tax system is built on the self-assessment idea. The firms should be in charge of making sure that the tax returns and accompanying schedules filed to the FTA are correct, comprehensive, and compliant with UAE corporate tax law (the law is yet to be issued). Within the time range outlined in the Tax Procedures Law, the FTA will examine the UAE corporate tax returns submitted by the corporations and offer an evaluation. According to the procedures outlined in the Tax Procedures Law, taxpayers are permitted to contest the modified assessments issued by the FTA. Businesses can get assistance from tax agents in the UAE with tax assessment obligations.

Consult with UAE-based FTA-Approved Tax Agents

The implementation of corporation tax in the UAE is anticipated to have a significant impact on how companies conduct themselves there. It is recommended that businesses begin their examination of their corporate tax readiness with the aid of FTA-approved tax agents in the UAE, such as Intellect Chartered Accountants (ICA). To minimize greater implementation expenses and to ease the burden on internal teams, you must assure early planning with the assistance of ICA’s highly qualified tax advisors in the UAE. To plan ahead and prevent last-minute shocks, speak with ICA as soon as you can.

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