Corporate Tax Return Filing Services Dubai

Corporate tax return filing

Corporate tax return filing is a compulsory obligation for companies operating in the UAE, and the failure to submit tax returns can lead to penalties and fines. The corporate tax law in the UAE was introduced in January 2022, with the implementation scheduled for June 2023 or January 2024. Set to take effect on June 1, 2023, the law imposes a 9% headline rate, while annual taxable profits below AED 375,000 incur a 0% rate. All businesses, whether local or foreign, are subject to these tax laws, and non-compliance may result in significant financial consequences.

Every taxable entity must register for corporate tax and obtain a Tax Registration Number. Even exempt persons may be requested to register for corporate tax in certain cases. Strict adherence to the Corporate Tax Law and Audit procedures is crucial for all businesses to avoid potential fines and penalties.

Corporate tax return filing in the UAE involves submitting a report to the relevant tax authority detailing a company’s income and expenses for a specific tax period. This filing is carried out by the taxable person, providing information on corporate tax liability and payments. The filing must be done within a specified period as per the Corporate Tax Law, and any additional requested information must be promptly submitted to the tax authority.

Filing corporate tax returns in the UAE is mandatory, and the Federal Tax Authority (FTA) requires companies to file tax returns and pay taxes on their taxable income in accordance with UAE tax laws. However, businesses with income below AED 375,000 are subject to a 0% tax rate. Regardless of income levels or company status, all taxpayers are obligated to file corporate tax returns to comply with regulations.

Even Free Zone entities are not exempt from corporate tax in the UAE. All Free Zone entities, whether qualifying as Free Zone persons or not, are required to file corporate tax returns.

Businesses in the UAE are obligated to file corporate tax returns only once per tax period. The deadline for filing is nine months after the end of the relevant tax period. No advance or preliminary corporate tax filings are necessary. For example, a company with a first tax period beginning on June 1, 2023, will have a deadline up to February 28, 2025.

Corporate tax return filing offers several benefits, including efficient cost management, proper time control, a single tax return for a group, and the ability to consolidate the amount of group tax paid.

To file corporate tax returns in the UAE, businesses can use the EmaraTax portal, an online platform approved by the FTA. The registration process can be completed online, and for entities pre-approved for corporate tax, registration can be done in EmaraTax. The integration of EmaraTax with the UAE Central Bank and UAE PASS has streamlined the user experience.

The procedure for corporate tax return filing in the UAE involves obtaining a tax registration number, maintaining meticulous records of financial transactions, preparing the tax return based on these records, filing the tax return through the FTA’s online platform, paying the tax liability by the due date, and undergoing a tax audit if requested by the FTA.

Elements of corporate tax return filing services include providing information about the company’s profits and expenses. Essential documents for filing corporate tax returns include financial records, calculations of taxable income reflecting changes in the net result, records and plans for tax depreciation, transfer pricing records, information on transactions involving relatives, and movement of provisions.

MAK Auditing, with its team of highly knowledgeable and experienced tax consultants in the UAE, assists clients in navigating the complexities of corporate tax return filing. The services include guiding through document preparation, calculating tax liability, and ensuring compliance with the tax authority’s regulations for various corporate tax activities, including registration, filing returns, and refunds.