Corporate Tax Return Filing

Corporate Tax Return Filing in UAE

Corporate tax return filing in UAE is the process of sending a report to the applicable tax authority that outlines an enterprise’s profits 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, all companies in the UAE must file corporate tax returns. The Federal Tax Authority (FTA) requires businesses to report their taxable income and pay taxes according to UAE tax laws. However, businesses earning less than AED 375,000 are taxed at a 0% rate.

These tax rules apply to both local and foreign companies. If a business doesn’t file its tax returns or pay taxes on time, it can face fines and penalties. Even if a company has no income, it must file a corporate tax return. All businesses, no matter their income or status, must submit a return.

Eligibility Criteria For Corporate Tax Return Filing in Dubai

To determine whether a business needs to pay corporate tax in UAE, it must meet certain conditions. Following these conditions helps businesses comply with UAE tax laws and support the country’s economy.

Businesses or individuals with a UAE business license must pay corporate tax.
Free zone businesses are also required to pay corporate tax but may receive benefits if they meet specific conditions.
Foreign companies and individuals doing regular business in the UAE are subject to corporate tax.
Specific industries like banks, real estate companies, builders, and brokers must pay corporate tax.
All businesses operating regularly in the UAE must comply with corporate tax regulations.

The New Deadline for Corporate Tax Filing 2024

If you started your business on May 1, 2023, your first tax year will follow the normal calendar year, from January 1, 2024, to December 31, 2024. This gives you plenty of time to get things in order before you need to file your UAE corporate taxes. Your filing deadline will be in September 2025, which gives you about nine months after the end of the tax year to prepare everything.
If you started your business on June 1, 2023, your first tax period is shorter, from June 1, 2023, to December 31, 2023. Initially, your tax return was due by September 30, 2024. However, the government has extended the deadline to December 31, 2024, giving you an extra three months to sort out your corporate tax filing. This extension is helpful for new businesses still learning the tax process.
For those who started on July 1, 2023, your first tax period will be longer, covering from July 1, 2023, to December 31, 2024, about 18 months in total. Since your tax period is longer, your filing deadline will be September 30, 2025, giving you nine months after the tax period ends to prepare your return.

Documents Required For Corporate Tax Return Filing

Financial statements to calculate taxable income
Receipts for any deductions you are claiming
Records showing asset depreciation for tax purposes
Documents related to transfer pricing transactions
Details of transactions with related parties
Information on changes in financial reserves that affect taxable income
Financial statements to calculate any exempt income
Documents proving your exemption status
Business loan papers showing interest paid
Records of any foreign taxes you have paid

Penalties for Missing Corporate Tax Return Filing Deadlines

If businesses don’t file their corporate tax returns on time, they may face fines or penalties. The amount depends on how late the filing is and how much tax is owed. Here’s a quick summary of the penalties for missing corporate tax return filing deadlines in the UAE:

If the Legal Representative doesn’t file the tax return on time: You’ll pay AED 500 each month for the first 12 months, and AED 1,000 for each month after that.
If the Registrant fails to submit the tax return by the deadline: The same penalties apply AED 500 monthly for the first 12 months, then AED 1,000 for each month after.
If there’s a late or missed declaration to the Authority: You’ll also pay AED 500 each month for the first 12 months, followed by AED 1,000 for each month after.

Steps to Check Corporate Tax Fine on the FTA (Federal Tax Authority) Portal

If you want to see that your business has any corporate tax fines in the UAE, follow these steps:

Before you start, make sure you have:

Tax Registration Number (TRN) of your company
Login details for the 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 you see on the website.
Enter your FTA username and password to log in.

Step 3: Find the Penalties Section

After logging in, you will see your dashboard.
Look for the ‘My Penalties’ or ‘Fines’ section on your dashboard. It might be in the main menu or as a separate tab.

Step 4: Check Penalty Details

Click on ‘My Penalties’ to see if your company has any fines. This section will show you:
- The amount of the fine
- The reason for the fine
- The due date for payment