Corporate Tax Return Filing [2025]
UAE Corporate Tax Return Submission Deadlines
| Accounting Period | Standard Return Filing Deadline (9 Months) | Deadline for Late Registration Penalty Waiver (7 Months) |
|---|---|---|
| January 2024 to December 2024 | September 30, 2025 | July 31, 2025 |
| April 2024 to March 2025 | December 31, 2025 | October 31, 2025 |
| June 2024 to May 2025 | February 28, 2026 | December 31, 2025 |
| January 2025 to December 2025 | September 30, 2026 | July 31, 2026 |
Who Must File a UAE Corporate Tax Return?
The rule is very simple. Every “Taxable Person” must file a corporate tax return. It applies to all companies and businesses that run their operations in the UAE. There are very few exceptions. However, the obligation exists regardless of your company’s performance or status.
- Profitable Companies: Must file and pay the tax due.
- Loss-Making Companies: Must file to report the loss. It is important because it allows you to carry forward tax losses to offset against future taxable income.
- Exempt Persons: Entities like government bodies or qualifying public benefit entities must still complete their Corporate Tax Registration and file a declaration.
- Free Zone Companies: Qualifying Free Zone Persons aiming for a 0% tax rate on their Qualifying Income must file a tax return to claim this benefit. Failure to file means forfeiting the tax incentive.
Moreover, if you have a trade license in the UAE, you almost have a filing obligation. Filing a “nil return” (a return that shows zero taxable income) is mandatory if you had no business activity but the license was active.
Pre-Filing Checklist: What You Need Before You Start
Proper preparation is very important for a smooth and accurate corporate tax return filing. Therefore, gather your documents and financial data beforehand to prevent last-minute stress and reduce the risk of errors.
Audited Financial Statements
Your accounting records are the basis of your tax return. The FTA requires you to prepare your financial statements according to the accounting standards accepted in the UAE. It is usually the International Financial Reporting Standards. The requirement for audited financial statements is very important. While it is a best practice for all companies, it is mandatory for two specific groups:
- Companies with revenue exceeding AED 50 million during the relevant tax period.
- Qualifying Free Zone Persons who wish to benefit from the 0% tax regime.
Even if your revenue is below this threshold, you must maintain audited financial statements because these demonstrate your business’s credibility. It also ensures your records are accurate for the FTA. In addition, these financial statements provide a more reliable starting point for calculating your taxable income.
Important Documents and Records
Before you access the EmaraTax portal, make sure you have the following documents organized and ready:
- Core Corporate Documents: Your valid trade license, Certificate of Incorporation, and Memorandum of Association (MOA).
- Complete Accounting Records: These include every invoice, receipt, expense claim, and bank statement for the financial year.
- Financial Reports: Your trial balance, profit and loss statement (income statement), and balance sheet are the primary reports you will use.
Supporting Schedules:
| Supporting Schedule | Description |
|---|---|
| Fixed Asset Register | All company assets, purchase dates, costs, and depreciation calculations. |
| Payroll Records | Salary payments, benefits, and end-of-service gratuity calculations. |
| Inventory Records | If applicable, includes valuation methods and stock counts. |
Transfer Pricing Disclosures
If your company engages in transactions with “Related Parties (such as owners, sister companies, or directors) or “Connected Persons” (individuals related to the owners or directors), you must focus on the “transfer pricing rules.” Remember, these rules ensure transactions occur at “arm’s length.” It is something like the transactions that happened between independent parties.
Similarly, you must disclose these transactions for the tax returns. You may also maintain a Master File and a Local File as supporting documentation. However, this depends on the volume and nature of the dealings. At Farahat & Co, our tax experts recommend making these documents organized and ready for submission, especially if the FTA requests them.
A Step-by-Step Guide to Corporate Tax Return Filing
Step 1: Log in to the EmaraTax portal using your registered credentials. You will see the availability of the corporate tax return under your company’s profile.
Step 2: Go to the Corporate Tax section and initiate a new return for the relevant tax period. The form will guide you through several sections.
Step 3: Now, declare your financials. Remember, this is where you report the figures directly from your financial statements. You will enter your total revenue, cost of sales, and other income and expenses as per your profit and loss statement.
Step 4: Next, make tax adjustments. Your accounting profit is not always the same as your taxable income. Therefore, the tax return requires you to make adjustments for income that is not taxable or expenses that are not deductible under the Corporate Tax Law. Here are some common adjustments:
| Adjustment Type | Explanation & Example | Impact on Taxable Income |
|---|---|---|
| Non-Deductible Expenses | Certain expenses are not allowed for tax purposes. An important example is 50% of client entertainment expenses. For instance, if you spent AED 10,000 on entertainment, AED 5,000 is non-deductible. | Increases |
| Exempt Income | Income from a “Qualifying Shareholding” is usually exempt from tax and must be deducted. These might include dividends and capital gains from specific investments. | Decreases |
| Unrealised Gains/Losses | Gains or losses reported on your P&L due to accounting valuations and not actual sales are usually removed for tax purposes until they are realised. | Increases or Decreases |
| Fines and Penalties | Penalties paid to any government body are not tax-deductible. | Increases |
Step 5: The form will present you “Taxable Income” after all adjustments. Likewise, the system applies the tax rates:
- 0% on taxable income up to AED 375,000.
- 9% on taxable income above AED 375,000.
Then, the form automatically computes the final tax due. You can use a Corporate Tax Calculator to verify the figures before submission.
Step 6: Now, carefully review every figure you have entered. Compare the final tax liability with your own calculations. Once you are sure that everything is correct, you can submit the return electronically.
Step 7: The final step of corporate tax return filing is paying your dues. You can make the payment through the EmaraTax portal via different methods. For example, the GIBAN provided on the portal is the most convenient payment method. Keep in mind that the payment deadline is the same as the filing deadline.
Common Mistakes to Avoid When Filing
Most people experience problems when filing their first few corporate tax returns. Therefore, you must know the common mistakes and try to avoid them. Thus, this can save you from penalties and other complications in the future.
- Poor record-keeping is the number one issue. You can’t produce accurate financial statements without detailed and organized records. Likewise, you can’t justify your numbers during an FTA audit if you have poor records. That’s why our corporate tax return filing experts recommend maintaining records from day one.
- Another mistake is ignoring transfer pricing. Many companies overlook transactions with related parties. If you fail to disclose these or price them at arm’s length, it can cause significant adjustments and penalties from the FTA.
- Incorrect expense classification is another mistake. If you mistake a non-deductible expense for a deductible one, it will understate your taxable income. Therefore, understand the rules for things like entertainment, donations, and fines.
- If you procrastinate and miss the filing deadline, it can incur a penalty of AED 1,000 for each month. Therefore, you must mark your deadline clearly.
- Failing to file a “Nil” return can cause issues. Many dormant or newly established companies assume they don’t need to file if they had no income. Remember, this is incorrect. The FTA requires a return from every registered entity, which also includes a nil return (if there was no activity).
What Happens After You File?
Second, if you find any error in your submitted return, you must file a voluntary disclosure to correct it. We recommend doing this proactively. Submitting a voluntary disclosure before the FTA notifies you of an audit, which can help reduce or mitigate penalties. Likewise, this demonstrates good faith and a commitment to compliance.
Final Thoughts on Corporate Tax Return Filing
The UAE business environment has experienced a significant change due to the introduction of corporate tax. Well, the change for companies is not just the payment of tax but the required discipline in financial management. While some businesses may think of their annual tax filing as a one-time chore, it is actually the end result of a year-long process of thorough bookkeeping.
Strong, clear, transparent, and IFRS-compliant accounting is your best strategy. Here at Farahat & Co., we believe that IFRS-compliant accounting is the strongest defense against future audits. It also creates a strong foundation for a healthy and compliant business.
If you need help with corporate tax returns or IFRS-compliant accounting, our experts can guide you or get the job done. We treat your books as if an audit is always around the corner and ensure that your business is well-prepared for any scrutiny.
Frequently Asked Questions (FAQs)
Do I need to file a tax return if my company made a loss?
Yes, you absolutely must. Filing a tax return to declare a loss is beneficial. It allows you to carry that tax loss forward and reduce your taxable income in future profitable years. Likewise, it lowers your tax bill for up to 75% of future taxable income.
What are the penalties for late filing or payment?
The administrative penalty for late filing of a corporate tax return is AED 1,000 per month. Late payment can cause penalties, which are calculated at 4% of the unpaid tax due per month. Remember, these are also fixed penalties for failing to register for corporate tax on time.
Can I file the corporate tax return myself, or do I need an agent?
You can file the return yourself through the EmaraTax portal. However, this is a complex process, particularly the tax adjustments and documentation. Many companies choose to hire a registered tax agent. Our experts can ensure accuracy and compliance with the law as well as help you optimize your tax position correctly.
What currency should I use for the tax return?
You must complete and submit the corporate tax return in UAE Dirhams (AED). If you maintain your financial statements in another currency, you must convert all figures to AED using the applicable exchange rates published by the UAE Central Bank.
Do I need separate financial statements for each branch in the UAE?
No, a legal entity with multiple branches in the UAE files a single and consolidated corporate tax return. You must combine the financial performance of all branches into one set of financial statements for the parent entity to determine the total taxable income.
