The UAE corporate tax system is unique to businesses; thus it is essential for taxable persons to understand the requirements for filing their corporate income tax returns. It is advisable for taxable persons to avail of the services of accredited tax consultants in the UAE to seamlessly file their returns and to stay compliant with corporate tax regulations and standards.
In January 2022, the Ministry of Finance announced the introduction of a federal Corporate Tax (CT) on the net profits of businesses. This tax will become applicable either on 1 June 2023 or on 1 January 2024, depending on the financial year followed by the business. The Corporate Tax will be applied across all the emirates.
UAE Corporate Tax Filing
All companies operating in the UAE, including those that are exempt from corporate tax, are required to file their tax returns. The process of business tax filing in the UAE involves several steps, thus it is imperative for taxable persons to comply with corporate tax standards to avert fines for noncompliance.
Step 1: Obtaining a Tax Registration Number (TRN)
The first step for UAE corporate tax filing is to obtain a Tax Registration Number (TRN). The TRN is a unique identification number that is assigned to every business in the UAE. Companies can apply for a TRN through the Federal Tax Authority's (FTA) online portal. To apply for a TRN, companies need to provide information such as their trade license number, legal entity name, and contact details.
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Step 2: Keeping Accurate Records
Once a company has obtained a TRN, it is important to keep accurate records of all financial transactions. This includes maintaining records of income, expenses, and assets. Companies are required to maintain these records for a minimum of five years, and they must be available for inspection by the tax authorities.
Step 3: Preparing the Tax Return
Further, it is imperative for taxable persons to prepare the tax return. Companies need to ensure that they have all the necessary documents and information required to prepare the tax return accurately. The FTA provides a tax return form on its online portal, which companies can use to file their returns.
Step 4: Submitting the Tax Return
After preparing the tax return, companies need to submit it to the FTA. The tax return can be submitted online through the FTA's portal. Companies need to ensure that they submit their tax returns before the deadline to avoid any penalties.
Deadlines for Corporate Tax Filing
Companies in the UAE are required to file their tax returns annually. The deadline for filing the tax return is different for each company, and it is based on their financial year-end. The deadline for filing the tax return for companies with a financial year-end of 31 December is 31 March of the following year. However, companies with different financial year-ends have different deadline, which are calculated as follows:
- If the financial year-end is between 1 January and 31 March, the deadline is 28 April.
- If the financial year-end is between 1 April and 30 June, the deadline is 28 July.
- If the financial year-end is between 1 July and 30 September, the deadline.
Read more: How to file corporate tax return in UAE
Choose UAE tax consultants
It is advisable for taxable persons to avail of the services of accredited tax consultants in the UAE to file their returns seamlessly and to stay compliant with corporate tax regulations and standards. Thus, contact us today and we shall be glad to assist you.
Mostafa is a seasoned Tax Consultant with over 5 years years of experience gained in diverse taxations matters. He has vast expertise in settling tax disputes with the Federal Tax Authority and handling of tax procedures in compliance with tax laws. He is adept in investigating underlying tax intricacies and offering expert tax advisory. He is also well-versed in conducting tax analysis’s and negotiations with the Tax Regulators, upon tax preparation and filing. Mostafa specializes in the areas of Tax law, Auditing, Accounting and Banking law.
