The method of calculating corporate tax under UAE taxation law involves using the net profit that appears in the profit and loss of a company. Corporate tax return preparation and filing involves categorizing various documents that reflect the financial position of an organization to determine the corporate tax that is payable to the government. Below is information on the basic steps and timeframes for corporate tax registration and filing to ensure businesses do not violate UAE tax legislation.
Your tax return must include the following information:
To prepare for corporate tax filing, gather the following documents:
Financial statements are the main documents that companies use while reporting their taxes to the internal revenue services. These documents give the financial administration a broad outlook of the company’s performance and status in the accounting period.
Transfer pricing documentation is mandatory for companies dealing with related parties in cross-border transactions. It ensures compliance with regulations and checks tax base erosion.
If your company earns income in foreign countries and is subjected to taxes, you can reduce its taxes using the foreign tax credit. To claim this credit:
Some costs can be treated as tax credits or deductions, especially in research and development. To claim these benefits:
Presenting the movement and value of financial assets and liabilities is critical for identifying the financial position of an organization to enable accurate reports and meet tax obligations.
Once the necessary documents are obtained, the next step is to complete and submit the corporate tax return. This involves:
After filing the corporate tax return, consider the following:
| Fiscal Year Start Date | Fiscal Year End Date | Deadline for Tax Return Filing |
| June 1, 2023 | May 31, 2024 | Before the end of February 2025 |
| January 1, 2024 | December 31, 2024 | September 30, 2025 |
| Financial Year | Start Date | End Date | Filing and Payment Due Date |
| 2023-2024 | June 1, 2023 | July 31, 2024 | Evaluation Date: July 30, 2024 |
| 2024 | January 1, 2024 | December 31, 2024 | Performance Date: September 30, 2025 |
| Fiscal Year | Start Date | End Date | Original Filing Deadline | Updated Filing Deadline | Notes |
|---|---|---|---|---|---|
| 2023-2024 | June 1, 2023 | May 31, 2024 | Before the end of February 2025 | Before December 31, 2024 | Extended for businesses incorporated after June 2023 |
| 2024 | January 1, 2024 | December 31, 2024 | September 30, 2025 | September 30, 2025 | No change for this period |
| 2023 | July 1, 2023 | June 30, 2024 | September 30, 2024 | December 31, 2024 | Extended for businesses with short tax periods |
These changes were officially announced in Decision No. 7 of 2024. It mainly applies to businesses with tax periods ending before February 29, 2024, which now have until December 31, 2024, to file their returns.
| Category of Taxable Entity | Company Existence Before March 1, 2024 | Registration Deadline for Corporate Tax |
| Juridical Resident Persons (e.g., Free Zone Persons) | Varies depending on the calendar month of receiving the commercial license | Earliest date for multiple licenses of the same type |
| Juridical Resident Persons (recognized on or after March 1, 2024) | Recognition, establishment, or incorporation (3 months) | - |
| Non-Resident Juridical Persons Before March 1, 2024 | A person with a UAE permanent establishment | Permanent establishment (3 months) |
| Non-Resident Persons (Juridical) on or after March 1, 2024 | A person with a UAE Permanent establishment | 6 months from the start of the permanent establishment |
| Natural Persons having Business in the UAE | Natural Person (resident) with business activity in the financial year 2024 or subsequent years with specified turnover | March (Gregorian calendar year) |
| Natural person (Non-resident) with business activity during the financial year 2024 or subsequent years with stipulated turnover | - | 31 months from fulfilling the conditions set to determine taxable persons |
If dissatisfied with the assessment by the Federal Tax Authority, the taxpayer may file an appeal within 20 working days of the assessment notice. The appeal must include reasons for the objection and either clear the amount in dispute or provide a bank guarantee.
Corporate income tax filing means different things to different people. Corporate income tax filing is the process of submitting a company’s financial information to the tax authorities including income and expenditure in order to calculate the taxes to be paid.
The tax returns for the corporate income tax are filed according to the fiscal year ending of the company and the due dates of filing are specified by the respective tax authorities.
The forms that are necessary depend on the jurisdiction but normally the forms include a balance sheet, income statement, and other schedules of income, deductions and credits.
Yes, most jurisdictions offer e-filing for corporate taxes which is a convenient and effective method of filing tax returns.
Consequences of failure in the submission of tax returns can result in charges such fines, and interest on the unpaid taxes, and possible legal proceedings by the government.
For the business, tax deductions can be the salaries of its employees, rent for business premises, utilities and other costs that are incurred in the running of the business among others.
Preparation includes securing of financial statements, proper record keeping and seeking advice from tax advisors.
There are differences in tax on corporations depending on the country and it may depend on factors like the size of the business, type of business, and revenue earnings.
Corporate income tax is charged on the earnings of a corporation while personal income tax is charged on a person’s income.
Yes, indeed, businesses frequently request for an extension to file their corporate income taxes but this must be done within certain guidelines and within a certain time frame.
The process of corporate tax filing in the UAE is dependent on certain rules and regulations and deadlines right from preparation. Thus, a detailed analysis of modifications in price and cost structure in financial as well as operational models and the necessity of the modification of transfer pricing models, compliance of all the above-mentioned modifications with conditions of Free Zone, will help to orient businesses effectively in the new tax environment. Filing is a critical process as it helps in compliance and non-amiss of filing helps in avoiding fines hence helping in organizational flow.
Read more: How to file corporate tax return in UAE
Taxable persons should avail of the services of accredited Corporate tax UAE consultants to file their returns seamlessly and to stay compliant with corporate tax regulations and standards and give reviews on corporate tax. 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.