Corporate Tax Return Filing Services
Get in touch with our Corporate Tax Audit team.
The FTA prescribes the form and method for submitting the Tax Return, which may include schedules and attachments. The Tax Return must be filed electronically through EmaraTax.
To meet their obligations, avoid penalties, and ensure the correct amount of Corporate Tax is paid, it is crucial for a Taxable Person to prepare and file the Tax Return accurately and on time.
The Tax Return can be submitted by the Taxable Person themselves or by another person authorized to do so on their behalf, such as a Tax Agent or a Legal Representative. In the case of an Unincorporated Partnership treated as a separate Taxable Person, the responsible partner must file the Tax Return. For a Tax Group, the Parent Company of the Tax Group is responsible for submitting the Tax Return on behalf of the group.
Taxable Persons can be identified as:
- Juridical person that is a Resident Person
- Juridical person that is a Non-Resident Person
- Natural person
- Qualifying Free Zone Person
- Tax Groups
- Unincorporated Partnership
Steps for Filing a Corporate Tax Return
| 1 | Register with the FTA (Federal Tax Authority): |
| Businesses must create an eServices account on the FTA portal. | |
| 2 | Prepare the Tax Return: |
| Collect financial data and prepare the tax return according to FTA guidelines. | |
| 3 | Identifying Taxable Persons and providing the required details |
| 4 | Make the elections: (Realisation basis, Transitional rules, Small Business Relief, Transfers within a Qualifying Group, Business Restructuring Relief and Foreign Permanent Establishment Exemption) |
| 5 | Do the accounting schedule– This schedule contains five parts: • Income Statement • Statement of other comprehensive income, • Statement of financial position, and Audit |
| 6 | Do the accounting adjustment and exempt income– This part of the Tax Return will contain all the adjustments required to be made by you to your Accounting Income in order to arrive at your Taxable Income, which can be a positive or negative amount. |
| 7 | Relief- The relief for transfers within a Qualifying Group allows specific assets or liabilities to be transferred between two Taxable Persons who are part of the same Qualifying Group, without resulting in a gain or loss for Corporate Tax purposes. When this relief is applied, both the Transferor and the Transferee must make certain adjustments while calculating their respective Taxable Income. |
| 8 | Tax Liability and Tax Credits- This part is applicable to all Taxable Persons and this is calculated automatically based on inputs you provided. |
| 9 | File the Return: Submit the return electronically through the FTA eServices portal. |
| 10 | Make Payment: Pay the tax |
Documents Required:
When filing a corporate tax return in the UAE, businesses must submit a range of documents to ensure compliance with tax regulations. The required documents typically include:
| 1 | Financial Statements Balance Sheet: Detailing the company’s assets, liabilities, and equity. Profit and Loss Statement (Income Statement): Summarizing the company’s revenues, expenses, and profits for the reporting period. Cash Flow Statement: Reflecting the company’s cash inflows and outflows. Statement of Changes in Equity: Showing any changes in the company’s equity over the reporting period. |
| 2 | Tax Computation A detailed breakdown of the taxable income (i.e., income subject to corporate tax). A calculation of the tax due, showing how the final tax amount was determined. Any tax adjustments made for exemptions, deductions, or tax reliefs claimed. |
| 3 | Supporting Documents for Exemptions and Deductions Documentation supporting tax exemptions (e.g., free zone exemptions or other tax reliefs). Evidence for any tax deductions claimed, such as business expenses, depreciation, or any allowances permitted by tax law. |
| 4 | Transfer Pricing Documentation (if applicable) For businesses involved in related-party transactions, documentation supporting the arm’s-length pricing of those transactions, in line with UAE transfer pricing rules. A master file and local file may be required to substantiate the pricing and demonstrate compliance. |
| 5 | Financial Reports for Subsidiaries (if applicable) If the company is part of a tax group, it may need to provide consolidated financial statements of the entire group. Reports showing the income, expenses, and profits of subsidiaries within the group. |
| 6 | Proof of Any Carryforward Losses or Tax Credits Documentation for carryforward losses (if any), which can offset taxable income in future years. Documentation supporting any tax credits claimed by the company. |
| 7 | Additional Forms or Schedules (as required by the FTA) Depending on the nature of the business and any specific circumstances, additional forms, schedules, or attachments may be required. These will be provided by the FTA when the tax return form is submitted. |
| 8 | Details of Taxable Person (for new businesses or changes) If the business is newly registered or there have been any changes in the company structure, the business must provide the UAE Tax Registration Number (TRN) and details of the legal structure of the business. |
| 9 | Audit Report (for large companies) An audit report from an external auditor might be required, especially for larger companies or entities subject to audit under the UAE laws. |
| 10 | Supporting Documents for Special Cases If the business is in a free zone or has special tax arrangements, additional documentation supporting its claim for exemption or reduced tax rates may be necessary. |
How MACKA Can Help?
Corporate Tax Return Preparation and Filing
Accurate Preparation: MACKA’s experienced tax professionals can ensure that your corporate tax return is accurately prepared, reflecting the correct taxable income and any applicable exemptions or deductions.
Timely Filing: MACKA can help meet the filing deadlines and ensure the tax return is submitted on time, preventing penalties for late filing.
