Corporate tax Registration Requirement

Corporate tax registration requirement 

All taxable persons, including free zone persons, are required to prepare and corporate tax registration in UAE within the period specified by the Federal Tax Authority and after that obtain a tax registration number(TRN).

Submission of Corporate tax returns in UAE

Taxable persons must submit their corporate tax returns to the Federal Tax Authority according to the forms and procedures specified within a period not exceeding (9) months from the date of the end of the relevant tax period or any other date specified by the Authority.

Visit here: Corporate Tax Calculator

Information to be put upon filing the corporate tax return in UAE

The tax period to which the tax return relates.

• The name, address and tax registration number of the taxable person
• The date on which the tax return was submitted
• Taxable income for the tax period
• The amount of the tax loss facility
• The number of tax losses transferred
• Tax credits available
• Corporate tax payable for the tax period
• Declaration or acknowledgement, in some cases

This applies to the following entities:

• Eligible public interest
• Qualified investment fund
• Public pension or social security fund
• A legal person if it is incorporated in the country and is wholly owned by a government agency.
• A government agency, a qualified investment fund, or a public pension or social insurance fund.

Key Steps for Filing Corporate Income Tax Returns

• Step 1: Registration and Tax Identification Number (TIN):
  • Ensure your business is registered with the Federal Tax Authority (FTA) and has obtained a TIN.
  • This is the first step before you can proceed with filing your tax returns.
• Step 2: Gathering Financial Records:
  • Compile all necessary financial records, including income statements, balance sheets, and transaction documents.
• Step 3: Calculating Taxable Income:
  • Accurately calculate your taxable income, taking into account allowable deductions and exemptions.
• Step 4: Preparing the Corporate Tax Return:
  • Complete the corporate tax return form with accurate and detailed information.
• Step 5: Submitting the Return via EmaraTax:
  • Utilize the EmaraTax portal to electronically submit your completed tax return.
• Step 6: Payment of Tax Liabilities:
  • Pay any outstanding tax liabilities within the stipulated deadlines.

Corporate tax returns filing and supporting documents 

The Corporate Tax Return is filed by the Taxable Person for a specific tax period, detailing the corporate tax liability and payment information. This Tax Return must be submitted to the tax authority within a specific period as stipulated by the Corporate Tax Law.

Electronic Filing System

It is confirmed that corporate tax returns will be electronically cataloged through a website gateway, much like the VAT and Economic Substance Regulations filings. This system streamlines the process and reduces paperwork.

Supporting Documents Required

The supporting documents that are required to be filed have not yet been given any details but will be stated in the final law update.

1. Financial records
   Businesses must maintain accurate financial records to support their tax returns.
2. Computation of taxable income
   A detailed computation of taxable income, showing adjustments to net income as per accounting records, is required.
   
3. Tax Depreciation Worksheets
   Worksheets and schedules for tax devaluation
4. Transfer Pricing Records
   Records of transactions involving related parties must be kept to ensure compliance with transfer pricing rules.
   
5. Transactions Involving Relatives
   Information on transactions with relatives is crucial for transparency and compliance.
   
6. Provisions movement
   Documentation of provision movements is needed to support adjustments in taxable income.

Moreover, if we navigate the proposed corporate tax regime thoroughly, the following details are given regarding the process of filing documentation to meet the proposed compliance requirements:

• A firm will only be required to equip and file one tax return with the Federal Tax Authority for each tax period, together with any additional applicable supporting records, to reduce the administrative load on taxpayers.
• A corporation won’t be required to submit a provisional corporate tax return or pay back advance Corporate taxes.
• The Federal Tax Authority must receive each tax return along with any necessary supporting records within 9 months after the conclusion of the applicable Tax Period.
• Within 9 months after the conclusion of the applicable Tax Period, expenses must be made to relieve a taxpayer’s Corporate Tax liability for that duration. If a taxpayer can show that a Corporate Tax refund might be owed, the taxpayer can apply to the Federal Tax Authority to ask for a refund.

Knowledgeable corporate tax advisors not only help you to design your policies according to the proposed corporate tax regime but also facilitate you through the entire process of filing tax returns.

Deadlines for filing corporate tax returns in UAE

For companies whose fiscal year is from June 1 to May 31, the first tax period for them will extend from June 1 of 2023 to May 31 of 2024. As for the second tax period, it will be during the same period of the year 2024, and the deadline for filing. The tax return for the first tax period is February 28 of 2025

For companies whose fiscal year is from January 1 to December 31, the first tax period for them extends from January 1 to December 31 of 2024. As for the second tax period, it will be during the same period of the year 2025, and the deadline for submitting the tax return is for the tax period. The first is September 30, 2025.

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Tax compliance is an essential component for taxable persons noncompliance accrues hefty fines. Therefore, tax registration is the primary basis for ensuring compliance. Corporate Tax UAE is committed to furnishing clients with top corporate tax services. Our specialized tax consultants assist in navigating and combating all tax intricacies upon tax preparation and registration. Thus, taxable persons should seek the services of UAE tax consultants to seamlessly implement tax standards and stay compliant.

Deadlines and Important Dates

Key Information	Details
Filing Deadline	Corporate tax returns must be filed within 9 months of the end of the tax period.
Payment Deadline	Corporate tax liability payments must be made within 9 months of the tax period’s end.
Updates & Changes	Stay updated on announcements from the UAE Federal Tax Authority (FTA) for deadline revisions.

Avoiding Penalties: Timely Filing and Payment

Risk	Preventive Action
Penalties for Late Filing/Payment	Late filing or payment can result in financial penalties imposed by the FTA.
Financial Repercussions	Strictly adhere to deadlines to avoid unnecessary fines or legal complications.
Record-Keeping	Maintain accurate financial records to prevent errors and ensure smooth filing processes.

FAQs

What are transitional rules in the administrative process of corporate tax in UAE?

Corporations will not need to restate their balance sheets to comply with the UAE Corporate Tax system once they do so. Rather, a taxable individual’s closing balance sheet for financial reporting goals for the duration that ends right before the start of their first tax period would typically be their beginning balance sheet for Corporate Tax purposes.

When will the first tax period start?

Federal corporate tax law in UAE will be enforced with full effect in the upcoming year 2023. Consequently, the first reportable period will start on 1st July 2023 and will last up to 30th June 2024. All businesses that fall under the scope of corporate tax in the United Arab Emirates will have to prepare to report their taxes as soon as the first period starts. The businesses will be required to file their taxes before March 2025, and so on.

How to submit corporation tax return?

To file your company tax return, log in to the Federal Tax Authority (FTA) eServices portal, complete and submit your tax return, and pay any taxes due. Make sure all information is correct and keep the confirmation receipt for your records.

Individuals who are eligible for reimbursement under the Corporate Tax Legislation need to request it to the Federal Tax Authority (FTA) by taking the steps that are explicitly stated in the procedure. When the refund application is delivered to FTA, they will check its validity within twenty working days from receiving it.

What documents are needed for filing corporate tax returns?

Financial records, taxable income computations, tax depreciation worksheets, transfer pricing records, and information on transactions involving relatives.

How can I apply for a corporate tax refund?

Apply to the FTA with supporting documentation if a refund is due.

Ready to file your corporate tax returns? Contact us for expert assistance and ensure compliance.