UAE Corporate Tax Return Filing

UAE Corporate Tax Return filing services is a mandatory obligation for companies operating in the UAE, and failure to comply with this requirement can lead to penalties and fines. With the announcement of the UAE corporate tax law, companies are gearing up to submit their corporate tax returns within the specified timeframe set by the Federal Tax Authority (FTA). Corporate Tax filing Services in the UAE are utilized by the Taxable Person to file returns for a specific tax period, based on information about corporate tax liability and payment. The Tax Return should be filed within a specific period with the tax authority according to the Corporate Tax Law.

Federal Decree-Law No. 47 of 2022 establishing UAE Corporate Tax was issued in December 2022. The Corporate Tax regime applies to tax periods (financial years) starting on or after 1 June 2023; the exact first filing date therefore depends on each entity’s financial year (for example, entities with a 1 June–31 May year will be in scope from 1 June 2023, while entities with a calendar year starting 1 Jan 2023 may first be in scope in a tax period starting 1 Jan 2024). Profits below AED 375,000 annually are taxed at a 0% rate. The legislative framework incorporates elements aligned with international best practices in taxation.

A Taxable Person must register for Corporate Tax and obtain a Tax Registration Number. Certain categories of Exempt Persons (as specified in Ministerial Decision No. 43 of 2023) are not required to register, although the FTA may require registration in limited and specified circumstances; readers should consult Ministerial Decision No. 43 of 2023 for the list of exempt categories.

What is Corporate Tax Return Filing in UAE?

Corporate tax return filing services in the United Arab Emirates (UAE) involves submitting a comprehensive report to the appropriate tax authority, outlining a company's income and expenses. The UAE Corporate Tax Filing services is filed by the Taxable Person for a designated tax period, providing details regarding corporate tax liability and payments. It is imperative to file the Tax Return within the specified timeframe as stipulated by the Corporate Tax Law.

Corporate Tax Rates and Applicability in the UAE

The United Arab Emirates (UAE) has implemented a federal corporate tax regime effective for financial years starting on or after June 1, 2023. The standard corporate tax rate is 9% on taxable income exceeding AED 375,000 Income below this threshold is not subject to corporate tax, effectively allowing small businesses and start-up's to operate without tax burdens on their initial earnings.

Taxable Income Thresholds:

• Up to AED 375,000, there is no tax on taxable income.
• 9% tax on taxable income exceeding AED 375,000.
• This structure is designed to support small businesses while ensuring that larger corporations contribute to the national revenue.

Who Needs to File Corporate Tax Returns?

In the UAE, Corporate Tax is governed by Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. Corporate Tax returns must be filed by individuals and entities that meet the following criteria:

Resident Juridical Persons

• These include companies and other legal entities incorporated in the UAE or foreign entities that are effectively managed and controlled within the UAE​.
• Examples include Limited Liability Companies (LLCs), Public and Private Joint Stock Companies, and partnerships that conduct business activities in the UAE​.

Non-Resident Juridical Persons

• Foreign entities that have a Permanent Establishment in the UAE or derive income from a nexus in the UAE (e.g., earning income from UAE immovable property) are required to file corporate tax returns​.
• Non-residents with State Sourced Income can opt not to register if they do not have a Permanent Establishment, but those with a nexus are required to register and file​.

Natural Persons Conducting Business

• Natural persons, such as sole proprietors or individuals involved in unincorporated partnerships, must file corporate tax returns if they:
  • Conduct business or business activities in the UAE.
  • Earn an annual turnover exceeding AED 1,000,000 in a Gregorian calendar year​.

Free Zone Persons

• Businesses operating within Free Zones that are classified as Qualifying Free Zone Persons need to file corporate tax returns, even if they benefit from a 0% tax rate on qualifying income​.

Exempt Persons

• Certain categories, such as government entities, qualifying public benefit entities, pension funds, and investment funds, may be exempt from corporate tax. However, they still need to meet specific conditions and may need to notify the Federal Tax Authority (FTA) and file returns to maintain their exemption status​

What is the Deadline for Filing Corporate Tax Returns?

Businesses in the UAE are granted a timeframe of up to 9 months from the conclusion of the relevant tax period to submit their tax return and settle the Corporate Tax dues with the Federal Tax Authority (FTA). For instance, a company whose first tax period commences on June 1, 2023, will have until February 28, 2025, to meet this deadline. Similarly, a company with a first tax period beginning on January 1, 2024, would be required to file by September 30, 2025. For businesses whose first tax period starts on January 1, 2025, and ends on December 31, 2025, the Corporate Tax Return filing deadline will be September 30, 2026.

This initiative underscores the UAE's commitment to ensuring the seamless implementation of Corporate Tax policy. The advantages of timely corporate tax return filing services include efficient cost management, effective time management, consolidation of group tax filings into a single return, and the opportunity to offset tax liabilities among group entities, with some entities generating taxable profits while others may incur tax losses. Businesses can benefit significantly from professional Corporate Tax filing Services to ensure compliance and optimize tax efficiency.

How to File Corporate Tax Return Filing in UAE Step by Step Process 

Step 1: Ensure Corporate Tax Registration

Before filing, your business must:

• Be registered for Corporate Tax
• Have an active TRN (Tax Registration Number)
• Have accurate details in EmaraTax

Incorrect registration details can affect your return sections.
If you have not completed your Corporate Tax registration yet, Reyson Badger can help you register, obtain your TRN, and check your EmaraTax details so you can file your return without any issues.

Step 2: Log in to EmaraTax Portal

All Corporate Tax Returns must be filed through EmaraTax.
Once logged in:

• Select Corporate Tax
• Choose the relevant Tax Period
• Start filing the return

Step 3: Complete Part A – Taxable Person Information

This section includes:

• Legal name (English & Arabic)
• TRN
• Address
• Tax Period
• Type of Taxable Person

Your classification (Resident, Free Zone, Tax Group, etc.) determines which fields and schedules appear.

Step 4: Make Elections (If Applicable)

You may need to make elections such as:

• Business Restructuring Relief
• Foreign Permanent Establishment exemption
• Realisation basis election

These elections apply only if conditions are satisfied.

Step 5: Report Accounting Income

Corporate Tax calculation begins with:
Accounting Income (Profit Before Tax)
This should align with your:

• Financial statements
• Trial balance
• IFRS accounting standards

Accuracy at this stage is critical.

Step 6: Apply Accounting Adjustments

Adjust accounting profit to determine Taxable Income by:

• Adding back non-deductible expenses
• Deducting exempt income
• Adjusting unrealised gains/losses

Applying transfer pricing adjustments

This step converts accounting income into taxable income.

Step 7: Claim Reliefs (If Eligible)

Reliefs may include:

• Small Business Relief
• Business Restructuring Relief
• Tax Group Relief
• Foreign Tax Credit

Only claim reliefs if eligibility conditions are met.

Step 8: Calculate Corporate Tax Liability

Corporate Tax Rates in UAE:

• 0% on taxable income up to AED 375,000
• 9% on taxable income above AED 375,000

For Qualifying Free Zone Persons:

• 0% on qualifying income
• 9% on non-qualifying income

The system automatically calculates:

• Taxable income after losses
• Corporate Tax liability
• Tax credits
• Corporate Tax payable

Step 9: Declare Estimated Figures (If Any)

If you used provisional or estimated figures:

• Select “Yes”
• Provide proper disclosure

Transparency is required under UAE tax procedures.

Step 10: Upload Required Documents

Depending on your case, attachments may include:

• Financial statements
• Relief documentation
• Supporting schedules
• Transfer pricing documentation (if applicable)

Incomplete documentation may trigger review or penalties.

Step 11: Review and Declaration

Before submission:

• Confirm who prepared the return (Company / Tax Agent)
• Confirm authority (if Tax Agent
• Declare information is complete and accurate
• Enter name and capacity
• Submit

Submission is not valid without declaration.

Step 12: Pay Corporate Tax

Corporate Tax must be paid through EmaraTax before or on the filing deadline. Submit before or on the filing date to avoid penalties 
Failure to pay on time may result in:

• Late payment penalties
• Administrative fines
• Interest charges

Fines and Penalties for not Filing UAE Corporate Tax Returns

The UAE imposes penalties for companies that fail to comply with Corporate Tax return filing deadlines. Here's a breakdown of the key fines:

• Late Filing : Failure to submit a Corporate Tax registration application within the timelines specified by the FTA may result in a fixed administrative penalty of AED 10,000 (per Cabinet Decision No.10 of 2024). Separate penalties apply for late or incorrect submission of corporate tax returns (monthly penalties and percentage-based penalties as applicable). The AED 10,000 penalty therefore relates to late registration, not the routine late-filing monthly penalty for tax returns.
• Late Filing - Monthly Penalty : Administrative penalties are as follows:
  • Late registration (failure to submit the CT registration within FTA timelines) may trigger a fixed AED 10,000 penalty (Cabinet Decision No.10 of 2024 / amendments to Cabinet Decision No.75 of 2023);
  • Late filing of the corporate tax return attracts monthly administrative penalties (e.g., AED 500 per month for the first year and AED 1,000 per month thereafter), in accordance with the penalties schedule. These are separate penalties and apply to different failures (registration vs return submission).
• Incorrect Filing : There's a penalty for filing an inaccurate return. The exact amount depends on the severity of the error and the understated tax amount.

Documents Required for Corporate Tax Filing in UAE

To file your Corporate Tax Return accurately and avoid penalties, certain financial and legal documents must be prepared in advance. Proper documentation helps ensure smooth submission through EmaraTax and full compliance with the regulations of the Federal Tax Authority.
Below are the key documents typically required for Corporate Tax filing:

• Trade Licence & Company Registration Details: A valid trade licence, certificate of incorporation, and business registration documents confirming your company’s legal structure (Mainland, Free Zone, or Offshore).
• Corporate Tax Registration Certificate: Issued by the FTA, this confirms your Corporate Tax registration and includes your Tax Registration Number (TRN), which is mandatory for filing.
• Financial Statements: Income statement, balance sheet, and cash flow statement for the relevant tax period. These are essential for calculating taxable income accurately, whether audited or management-prepared.
• General Ledger: A detailed record of all financial transactions during the year. This supports reported income, expenses, and adjustments made in the tax return.
• Bank Statements: Statements for all business bank accounts to verify income received, supplier payments, and overall cash movement.
• Revenue and Expense Supporting Documents: Sales invoices, purchase invoices, payroll records, contracts, agreements, and receipts that validate income earned and deductions claimed.
• Fixed Asset Register: Details of company-owned assets along with depreciation schedules, especially if depreciation is claimed as a deductible expense.
• VAT Records (If Applicable): VAT returns, VAT payment history, and VAT TRN. These ensure consistency between VAT filings and Corporate Tax disclosures.
• Transfer Pricing Documentation (If Applicable): Required for businesses with related-party or international transactions. This may include transfer pricing reports, master file, and disclosure forms.
• Supporting Tax Schedules: Breakdowns of non-deductible expenses, exempt income, carried-forward losses, foreign tax credits, Free Zone qualifying income, and other adjustments affecting taxable income.
   

Role of Corporate Tax Consultants

Corporate tax consultants play a vital role in assisting businesses with tax compliance, ensuring accurate and timely preparation and filing of tax returns. These experts navigate complex tax laws and regulations, identifying opportunities for tax savings and minimizing potential liabilities. By outsourcing corporate tax compliance, companies can benefit from increased efficiency, reduced risk, and cost savings. As Reyson Badger notes, "Partnering with a reputable corporate tax consultant can provide businesses with peace of mind, knowing their tax obligations are being managed by experienced professionals.

Corporate Tax Return Consultants in UAE

Reyson Badger Auditing Services gives you highly knowledgeable and experienced tax consultants in the UAE, dedicated to providing clients with top-tier Corporate Tax services. Our expertise ensures that clients remain compliant with the laws and regulations set forth by the Tax Authority. A company's UAE Corporate Tax Returns are an important element of compliance for companies operating in the region.

Our comprehensive services encompass guiding clients through document preparation, calculating tax liabilities, and ensuring compliance with Corporate Tax activities such as registration, filing returns, and managing refunds, among others. Through our expert Corporate Tax filing Services, we help businesses streamline their tax processes and avoid potential penalties.

Require assistance with filing Corporate Returns? Contact us today!!! We're here to help!