At Arab Asset Consulting, we understand the importance of filing corporate tax returns for businesses operating in the UAE. Our specialized tax team is ready to provide end-to-end support and answer any questions you may have regarding corporate tax. With our expertise in the latest corporate tax regulations, we ensure that your tax returns are accurately prepared and submitted on time. This allows you to focus on expanding your business while we take care of compliance concerns.

What is Corporate Tax Return Filing in the UAE?

Corporate tax return filing involves submitting a tax declaration to the Federal Tax Authority (FTA) that outlines your company’s income and expenses for the tax year. This report determines your taxable income and calculates the tax payable. Every company in the UAE must file corporate tax returns within the timeframe established by corporate tax law.

Mandatory Corporate Tax Filing in UAE

Corporate tax return filing is mandatory for all businesses in the UAE, including:

• Mainland companies
• Free Zone entities (including those enjoying special tax incentives)
• Foreign businesses operating in the UAE

Even companies earning below AED 375,000, which benefit from a 0% tax rate, must file their tax returns within the deadline. Failure to comply will result in penalties.

Corporate Tax Filing Deadlines in UAE

Corporate tax returns and payments must be filed within nine months following the end of your financial year.

• Financial year July 1, 2023 – June 30, 2024 → Deadline: March 31, 2025
• Financial year January 1, 2024 – December 31, 2024 → Deadline: September 30, 2025
• Financial year April 1, 2024 – March 31, 2025 → Deadline: December 31, 2025

Extension: According to FTA Decision No. 7 of 2024, businesses incorporated on or after June 1, 2023, and those with a tax period ending on or before February 29, 2024, have an extended deadline until December 31, 2024 to file their tax returns and pay corporate tax.

Comprehensive Corporate Tax Liability Assessment

Arab Asset Consulting delivers a detailed Corporate Tax Liability Assessment Report, which ensures clarity and compliance by outlining:

• Assessment of Tax Liability: Calculation of the total tax owed.
• Breakdown of Tax Components: Detailed analysis of applicable tax categories.
• Compliance and Filing Status: Current compliance position and outstanding obligations.
• Penalties and Interest: Summary of potential liabilities from late filing.
• Bilateral Agreements Impact: Assessment of how treaties and agreements affect your tax position.

Key Considerations for Your First Corporate Tax Return

When filing your first tax return, keep in mind:

• Small Business Relief (SBR): Available for UAE resident persons with revenue not exceeding AED 3,000,000.
• Realization Basis Election: Option to report based on realizations instead of accrual, which is a permanent choice once made.
• Qualifying Free Zone Person Status: Requires maintaining substance, earning qualifying income, and complying with transfer pricing rules.
• De Minimis Requirements: Non-qualifying income must not exceed AED 5,000,000 or 5% of total revenue.
• Foreign Permanent Establishment Exemption: Possible exclusion of foreign PE income if taxed abroad at 9% or higher.

Required Disclosures for Qualifying Free Zone Persons

If your entity qualifies as a Free Zone Person, you must disclose:

• Income separately for qualifying and non-qualifying sources.
• Substance requirements: staff, assets, and operating expenditure.
• De Minimis disclosures for non-qualifying income.
• Details of outsourced substance: outsourced entity, TRN, address, expenses, and employees.

Expense Adjustments and Deductions

Businesses must consider:

• Non-deductible and capped expenses under UAE corporate tax law.
• Ministerial Decision 134 adjustments for realized/unrealized gains or losses.
• Group relief and restructuring adjustments for corporate groups.

Tax Credits

Companies can claim tax credits for taxes already paid on the same income abroad or in the UAE.

• The foreign tax credit is capped at the lower of the foreign tax paid or the UAE corporate tax due on that income.
• Timing mismatches between jurisdictions may affect credit eligibility.

Transfer Pricing Disclosures

When filing, businesses must provide a transfer pricing disclosure form with details of related party transactions:

• Individual reporting of each transaction.
• Specification of income and expense transactions.
• Disclosure of arm’s length value and methodology used.

Procedure for Filing Corporate Tax Returns in the UAE

1. Obtain a Tax Registration Number (TRN): Secure from the FTA.
2. Maintain Financial Records: Ensure accurate bookkeeping and compliance.
3. Prepare Your Tax Return: Calculate taxable income and apply deductions.
4. File Through EmaraTax: Submit your return via the FTA e-Services portal.
5. Pay Your Taxes: Ensure timely payment to avoid penalties.
6. Prepare for Audit: Be ready with supporting documentation if audited.

Essential Documents Required

• Financial statements (audited, where required)
• Local and Master Files
• Proof of ownership
• Records of expenses and income
• Tax Residency Certificate
• Supporting documents for exemptions or deductions

How Arab Asset Consulting Helps

We simplify the corporate tax filing process by:

• Guiding you through obtaining your TRN.
• Preparing IFRS-compliant financial statements.
• Ensuring timely and accurate filing.
• Advising on available reliefs and exemptions.
• Providing complete transfer pricing documentation.

Frequently Asked Questions

Is it mandatory to file corporate tax returns in the UAE?

Yes, all businesses operating in the UAE, including Free Zone entities, must file corporate tax returns.

What documents are required for filing?

Financial statements, proof of ownership, expense and income records, Local/Master Files, and a Tax Residency Certificate.

How does Arab Asset Consulting assist with filing?

We provide end-to-end support, from TRN registration to preparing and submitting your tax return, ensuring compliance at every step.

What are the penalties for late filing?

Missing the deadline can result in significant penalties and fines, in addition to compliance risks.

Can I claim tax credits?

Yes, businesses can claim tax credits for taxes already paid on the same income abroad or in the UAE, subject to FTA rules.

What disclosures are required when filing?

Businesses must disclose Emirate-wise reporting, unincorporated partnerships, capital distribution schedules, and details of financial audits.

File Your Corporate Tax Returns with Confidence

Corporate tax return filing doesn’t have to be complicated. With Arab Asset Consulting, you can file with confidence, avoid penalties, and stay compliant.

Contact us today to get expert assistance with your UAE corporate tax return filing.