You can file Corporate Tax Returns online through the EmaraTax portal. Currently, the Federal Tax Authority (FTA) approves the pre-registration of corporate tax for selected entities. If you are among these selected entities, you can register for corporate tax in EmaraTax. EmaraTax has collaborated with the UAE Central Bank as well as UAE PASS which aims at facilitating and enhancing users' experience.
A company subject to Corporate Tax in UAE must enroll with the Federal Tax Authority (FTA) and get a tax identification number under the time frame that the final constitution will specify.
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.
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.
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.
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:
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.
Read More: Deadline for Corporate Tax Registration in UAE 2024
The Corporate Tax return and other papers filed to the Federal Tax Authority must be supported by monetary and other documents that the business must keep at hand. Additionally, some exempted individuals will need to keep evidence so that the Federal Tax Authority can verify their exempt status.
The relevant corporation rules and laws still control whether an organization's financial statements must be audited by a certified audit enterprise. A Free Zone individual, however, has audited financial accounts to take advantage of the corporate income tax UAE regime's 0% corporate tax rate.
You should also consult corporate tax advisory services to avoid any conflict regarding compliance and documentation.
UAE's participation in the extensive framework of OECD implements Corporate Tax logic, especially in light of talks surrounding the Pillar II suggestion. Comparing the planned rate of tax to additional jurisdictions, it is yet very affordable at nine percent.
Additionally, the Consultation Document illustrates that the proposed Corporate tax regime is established on internationally accepted and widely used doctrines, which makes the tax and implementation process for companies prone to comparable regimes in distinct jurisdictions reasonably efficient. The bill appears to also protect several of the most distinctive tax advantages of the UAE, such as the tax advantages granted to firms established in free zones.
Read more: Corporation Tax Planning in UAE: Tax Saving Strategies for Businesses
| Document Type | Description |
|---|---|
| Financial Records | Accurate records supporting the tax return |
| Computation of Taxable Income | Detailed adjustments to net income |
| Tax Depreciation Worksheets | Worksheets detailing tax depreciation deductions |
| Transfer Pricing Records | Records of transactions with related parties |
| Transactions Involving Relatives | Information on transactions for transparency |
| Provisions Movement | Documentation of provisions movements for adjustments |
| Audited Financial Statements | Required for Free Zone entities to benefit from 0% tax rate |
| Evidence for Exempt Status | Supporting documents for exempt status verification by FTA |
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.
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.
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.
Financial records, taxable income computations, tax depreciation worksheets, transfer pricing records, and information on transactions involving relatives.
Apply to the FTA with supporting documentation if a refund is due.
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.