A declaration under corporate tax is a statement that a taxable person must submit to the FTA to report their income and expenses for a financial year and calculate their corporate tax liability. The UAE Ministry of Finance issued Ministerial Decision No. 118 of 2023 on 11 May 2023, which regulates the declaration and payment of corporate tax. The decision covers the steps and requirements for submitting the corporate tax declaration online through the FTA’s website, including the necessary attachments such as audited financial statements and supporting documents. It also covers the ways and deadlines for paying the corporate tax owed or requesting a refund of excess tax paid, the outcomes of late payment or non-payment of tax, and the requirements for amending a declaration after submission, including the penalties and interest for a wrong or incomplete declaration.
Filing the Declaration Through the FTA E-Services Portal
Filing the declaration electronically through the FTA’s e-services portal is required within nine months of the end of the financial year. For a financial year ending 31 December 2025, that means the declaration must be filed by 30 September 2026.
The declaration must include the following information:
- The taxable person’s name, address, corporate tax registration number, and financial year.
- Income from all sources, including business activities, royalties, interest, dividends, and other investment benefits.
- The taxable person’s expenses that are deductible for corporate tax purposes, such as salaries, rent, depreciation, interest, and other business-related costs.
- Net profit or income after deduction of expenses.
- The taxable person’s corporate tax rate, which depends on their income level and business sector.
- The taxable person’s corporate tax due, calculated as net income multiplied by the tax rate.
- The taxable person’s corporate tax paid, meaning any amount already paid in advance or withheld at source.
- The tax balance, being the difference between tax paid and tax due.
The declaration must be accompanied by supporting documents, such as financial statements, invoices, receipts, and contracts, to verify the accuracy and completeness of the information provided. The FTA may audit the declaration and request additional information or clarification from the taxable person. Any outstanding corporate tax balance must be paid within the deadline specified by the FTA.
How to Ensure Accuracy and Compliance When Filing a UAE Corporate Tax Declaration
Here are some common mistakes to avoid when filing a corporate tax declaration in the UAE:
- Late filing: The declaration must be filed within nine months of the end of the relevant financial year. Missing this deadline triggers fines and penalties.
- Failure to maintain records: The declaration must be supported by adequate and accurate documents, such as financial statements, invoices, receipts, and contracts. These records must be kept for seven years after the end of the relevant financial year.
- Incorrect calculation of income and expenses: The declaration must report income and expenses from all sources, including business activities, dividends, interest, royalties, and other investment returns.
- Income and expense calculations should follow UAE corporate tax rules and International Financial Reporting Standards (IFRS).
- Issues with deductions and tax credits: The declaration must include deductible expenses such as salaries, rent, depreciation, and interest, along with any tax credits available for foreign taxes paid or withheld at source. Deductions and tax credits must be claimed in line with UAE corporate tax law and the relevant double tax treaties.
- Mistakes when applying the tax rate: The declaration must apply the correct tax rate to net income. The standard rate is 9%, which may be higher for large multinationals under Pillar Two. The rate applied must be consistent with the corporate tax law and relevant regulations.
Can You Amend a Filed Corporate Tax Declaration? (Voluntary Disclosure)
Yes. If you discover an error or omission in a declaration you’ve already filed, you can correct it through a Voluntary Disclosure. This must be submitted within 20 business days of becoming aware of the mistake. Correcting the error yourself is significantly cheaper than waiting for the FTA to find it during an audit: a self-disclosed error attracts a penalty of 1% per month on the tax difference from the original due date, under Cabinet Decision No. 129 of 2025. You’ll also need to pay any additional tax due, or you can claim a refund if the correction results in an overpayment. The FTA may accept or reject the disclosure depending on the nature and extent of the error.
Choose Tax Consultants in UAE
Filing a declaration under corporate tax UAE is an important obligation for all taxable persons conducting business activities in the UAE. Electronic filing through the FTA’s e-services portal is mandatory, within nine months of the end of the financial year. The declaration must include income and expenses from all sources, net income or profit, the applicable tax rate, tax due, tax paid, and the resulting tax balance, and it must be supported by relevant documents in compliance with UAE corporate tax law. Any outstanding balance must be paid within the FTA’s specified deadline. It’s advisable to seek the expert services of a top Corporate Tax Consultant in the UAE to ensure compliance with declaration filing and all corporate tax requirements. Contact us today and we’ll be glad to assist you.
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