Corporation Tax Filings

What is corporate tax return filings in the UAE?

Corporation tax return filing is the process of submitting a report to the relevant tax authority stating income and expenses of a company. The corporate tax return is filed by the Taxable Person for a specific tax period on the information about corporate tax liability and payment. 

IIs it mandatory to file corporate tax returns in UAE?

Yes, it is mandatory to file corporate tax returns in the United Arab Emirates (UAE). The Federal Tax Authority (FTA) requires companies operating in the UAE to file tax returns and pay taxes on their taxable income as per the UAE tax laws. However, only 0% tax will be subjected for businesses with income less than AED 375,000.

The tax laws in the UAE apply to both local and foreign companies operating in the country, and failure to file tax returns or pay taxes can result in penalties and fines.

Should UAE businesses with no income file for CT returns?

All Taxpayers are required to file a corporate tax return, irrespective of the income level or status of the company.

Should Free Zone entities file for corporate tax returns?

Corporate tax in UAE is imposed on Free Zone Persons as well. Hence, all Free Zone entities will be required to file a corporate tax return, even if they are Qualifying Free Zone Persons or not.

What is the deadline for corporation tax return filings in the UAE?

Businesses in the UAE will have up to 9 months from the end of the relevant tax period to submit their tax return and pay the corporate tax to the Federal Tax Authority (FTA). For example, a company with a first tax period beginning on June 1, 2023 will have a deadline up to February 28, 2025, whereas a company with a first tax period beginning on January 1, 2024 would have a deadline up to September 30, 2025.

Elements of corporate tax return filing services

When you file corporate tax return, it must include information about the profits and expenses of the company. The final result evaluates the tax amount liable to be paid to the government.

These are the basic documents you require when filing corporate tax returns:

• Financial records
• Taxable income calculations showing changes in the net result in accounting
• Records and plans for devaluation of tax
• Transfer Pricing records
• Information on transactions that involve relatives
• Movement of Provisions

Here at JAS Accountants, we ensure that our clients prepare and file accurate corporate tax returns, protecting them from the risk of audit.